SC charges husband and wife with insider trading

PETALING JAYA: A former head of equity at a local investment bank and his wife were charged by the Securities Commission (SC) with insider trading offences committed in 2006.

They were charged yesterday under section 89E(2)(a) of the Securities Industry Act 1983, SC said in statement.

Goh Keng Huat and his wife Wee Siew Ling were arrested in Singapore on Sunday with the assistance of the Royal Malaysian Police and the Singapore Police Force.

Goh was charged yesterday at the Kuala Lumpur Sessions Court with acquiring 851,600 units of Road Builder Holdings (M) Bhd shares while in possession of material, non-public information between Sept 4, 2006 and Oct 16, 2006.

Goh, at that time was head of equity markets at Aseambankers Malaysia Bhd (now known as Maybank Investment Bank Bhd).

Goh, who faces a total of 10 charges, was alleged to have acquired the RBH shares via the trading accounts belonging to Wee. The SC also preferred charges against Wee for abetting Goh by allowing her accounts to be used by Goh for the purpose of acquiring the said shares.

Both claimed trial against all the charges. Goh and Wee were granted bail of RM500,000 with two sureties respectively. The case has been fixed for mention on Dec 6.

SC alleged that the non-public information referred to in all the charges related to the proposed acquisition of all assets and liabilities of RBH by IJM Corp Bhd at a total indicative purchase consideration of approximately RM1.56bil.

Insider trading is punishable with imprisonment of up to 10 years and a fine of not less than RM1mil. A person who abets another individual in the commission of the offence is also liable to the same punishment.