SC charges Three-A Resources chairman for insider trading

PETALING JAYA: The Securities Commission Malaysia (SC) today charged Three-A Resources Bhd chairman Datuk Mohd Nor Abdul Wahid with insider trading.
Mohd Nor, 66, was charged at the Kuala Lumpur Sessions Court for acquiring 500,000 units of 3A shares on Oct 5, 2009 while in possession of material non-public information.
The SC alleged that the inside information related to the proposed collective venture between the businesses of 3A and Wilmar International Limited (Wilmar) which was announced to Bursa Malaysia on Oct 5, 2009.
Mohd Nor is currently an Independent Non-Executive Chairman of 3A, and was the executive chairman of the company at the material time.
He is alleged to have acquired the 3A shares through the account of one Azuzay Zamani. Azuzay, 43, was charged for allowing Mohd Nor to effect the acquisition of the 3A shares in his account, an offence under section 29A of the Securities Industry (Central Depositories) Act 1991 (SICDA).
The charge against Mohd Nor was read out before Sessions Court Judge Mahazan Mat Taib while Azuzay was charged before Sessions Court Judge Datuk Habibah Mohamed Yusof. Both claimed trial to the respective charge preferred against them.
Mohd Nor and Azuzay were granted bail of RM50,000 with one surety respectively. They were also ordered to surrender their passports.
The offence of insider trading under section 188(2)(a) of the CMSA is punishable with an imprisonment term not exceeding 10 years and a fine of not less than RM1 million.
The offence under section 29A of the SICDA is punishable with a fine not exceeding RM1 million and an imprisonment term not exceeding five years.
The company's stock closed up 1.5 sen or 1.5% to 98 sen with some 81,000 shares.