SC charges three for insider trading

PETALING JAYA: The Securities Commission Malaysia (SC) has charged three individuals for insider trading offences in relation to the proposed conditional take-over offer by OSPL Holdings Sdn Bhd of PacificMas Bhd.
SC said in a statement yesterday that the three individuals were charged under Section 188 of the Capital Market and Services Act 2007 (CMSA) at the Kuala Lumpur sessions court.
Ewe Lay Peng, 45, was charged with one count of communicating non-public information between Dec 10 and Dec 31, 2007 to Lim Bun Hwa, 41.
At the material time, both individuals were senior managers in the corporate finance department of CIMB Investment Bank Bhd.
Five charges were also preferred against Bun Hwa’s brother, Lim Boon Cheng, 47, for acquiring 145,000 units of PacificMas shares between Dec 18 and Dec 31, 2007 while in possession of material non-public information.
Bun Hwa was charged with abetting Boon Cheng in committing the alleged offence.
SC alleged that the material non-public information were related to the proposed conditional take-over offer by OSPL Holdings to acquire all voting shares in PacificMas, which was announced to Bursa Malaysia on Jan 4, 2008.
The charges against the three individuals were read out before sessions court Judge Tuan Azman Ahmad. All three claimed trial to the respective charges preferred against them.
Boon Cheng was granted bail of RM150,000 with one surety, while Bun Hwa and Ewe were each granted bail of RM100,000 with one surety respectively. The court also ordered them to surrender their passports.
The offences carry a penalty of imprisonment for a term not exceeding 10 years and a fine of not less than RM1 million.