SC charges 3A founder and five others with insider trading
PETALING JAYA: The Securities Commission Malaysia (SC) charged Three-A Resources Bhd (3A) founder and managing director Fang Chew Ham and five others with insider trading, for trading in the company shares while in possession of material non-public information.
The material non-public information refers to the collective venture between the businesses of 3A and Wilmar International Limited (Wilmar), which later materialised through a 20% private placement of the issued and paid-up share capital of 3A to Wilmar. The said information was announced to Bursa Malaysia on Oct 5, 2009.
Chew Ham, 69, together with his daughter and 3A executive director Fang Siew Yee, 36, were charged for communicating material non-public information to his brother and nonexecutive director Fong Chiew Hean, prior to the announcement, on Sept 5, 2009.
Fong was also charged for nine counts of insider trading. He had acquired 891,000 units of 3A shares between Sept 7 and Oct 5, 2009 through two accounts at PM Securities Sdn Bhd.
Chew Ham, Siew Yee and Fong all claimed trial. Kuala Lumpur sessions court judge Tuan Mat Ghani Abdullah fixed bail at RM250,000 for Fong, while bail for Chew Ham and Siew Yee were fixed at RM200,000. All three were ordered to surrender their passports to the court.
In a separate proceeding, the SC also charged Siew Yee under Section 188(2)(a) of the Capital Markets and Services Act (CMSA) for acquiring 2.72 million units of 3A shares. The offence is said to have been committed between Aug 27, 2009 and Oct 5, 2009.
“Siew Yee, who faces a total of eight charges, is said to have acquired 3A shares through the account of Tan Bee Geok, 62. Tan together with Chew Ham and two OSK Investment Bank Bhd dealers at the material time, Chew Lian Foon, 38, and Ong Kok Aun, 55, were charged for abetting Siew Yee in the commission of the offences under section 370(c) CMSA,” it said. All five claimed trial.
Siew Yee was granted bail of RM250,000 while Chew Ham, Tan, Chew and Ong were each granted bail of RM150,000. They were also ordered to surrender their passports except for Tan, who did not own one.
The offences are punishable with a jail term of not more than 10 years and a fine of not less than RM1 million.