Three persons charged with insider trading

PETALING JAYA: The Securities Commission (SC) has charged two former senior investment bankers and another individual with insider trading of Hirotako Holdings Bhd shares.

In a statement yesterday, the SC said Tan Giap How, 63, was charged with communicating inside information to Ng Ee Fang between Sept 25, 2011 and Oct 20, 2011, an offence under section 188(3)(a) of the Capital Markets and Services Act 2007 (CMSA).

“Tan was the regional head of equity markets at AmInvestment Bank Bhd, while Ng was the head of equity derivatives at AmInvest, at the material time,” the SC said.

The SC alleged that the material non-public information referred to in the charge was in relation to the proposed take-over offer by MBM Resources Bhd to acquire all the voting shares and outstanding warrants in Hirotako that was announced to Bursa Malaysia on Oct 27, 2011.

Hirotako, a manufacturer of automotive safety restraints and acoustics, was at the time listed on the main board of Bursa Malaysia.

“Ng, 45, was charged with four counts of insider trading for acquiring a total of one million units of Hirotako shares while in possession of the same information.

“The offence was allegedly committed between Oct 14, 2011 and Oct 20, 2011 and falls under section 188(2)(a) of the CMSA,” said the SC.

The SC also alleged that the shares were acquired through the account belonging to Ng’s husband, Daniel Yong Chen-I.

Yong, 47, was charged with allowing Ng to effect the acquisition of the Hirotako shares through his account, an offence under section 29A of the Securities Industry (Central Depositories) Act 1991 (SICDA).

“All three claimed trial to the respective charges preferred against them. Tan was granted bail of RM150,000 with one surety and was ordered to surrender his passport to the court.

“Ng was granted bail of RM450,000 with one surety, and Yong’s bail was set at RM350,000 with one surety. The court also ordered Ng and Yong to report to the SC investigating officer on a monthly basis.” The offences under sections 188(2)(a) and 188(3)(a) of the CMSA are punishable with an imprisonment term not exceeding 10 years and a fine of not less than RM1mil.

The offence under section 29A of the SICDA is punishable with a fine not exceeding RM1mil and an imprisonment term not exceeding five years.