Ex-shareholder claims trial to four counts of insider trading

KUALA LUMPUR: A former substantial shareholder of delisted textile company Maxbiz Corporation Bhd (Maxbiz) has claimed trial to four counts of insider trading involving a total of 10.2 million units of shares seven years ago.

Datuk Andrew Leong Wye Keong, 62, was charged before Sessions Court judge Zulqarnain Hassan yesterday.

Wye Keong was accused of disposing of 2,131,400 units of shares held in the account of his son Khai Shaun, 33, while in possession of information that was not generally available on Dec 30, 2010.

He was also charged with disposing of 8,100,000 shares in his account between Dec 30, 2010, and Jan 18, 2011, while having inside information.

The material non-public information for the first three charges related to the decrease in Maxbiz’s shareholders’ equity brought it close to being classified as financially distressed.

The material non-public information in the fourth charge concerned the classification of Maxbiz as a Practice Note 17 (PN17) company.

Maxbiz was listed on the Main Market of Bursa Malaysia before its delisting on March 26, 2012.

Wye Keong was accused under Section 188(2) and 188(2)(a) of the Capital Markets and Services Act 2007.

The offence was allegedly committed at Bursa Malaysia Securities Bhd, Exchange Square, Bukit Kewangan, here.

Securities Commission deputy public prosecutor Aimi Khalidah Mohd Puzi offered bail at RM300,000 for all charges and applied for the accused’s passport to be impounded by the court.

Wye Keong’s lawyer Tan Sri Muhammad Shafee Abdullah applied for RM400,000 bail without having to surrender the passport.

Judge Zulqarnain Hassan later fixed bail at RM600,000 with two sureties pending mention on June 9.