Officer pleads not guilty to securities fraud

KUALA LUMPUR: A securities officer pleaded not guilty to two charges of being involved in securities fraud involving a total of RM350,000 in the sessions court yesterday.

Ismail Basir, 67, who was arrested by the Securities Commission (SC), claimed trial to both the charges before judge Azman Ahmad.

He was accused of being directly in connection with the purchase of securities, namely Proton Holdings Berhad (Proton) shares.

According to the charge sheet, Ismail had on Aug 7, 2007 at Koperasi Pekerja Proton Berhad (Kopro) in Shah Alam, engaged in a fraudulent act by causing Kopro to give him a sum of RM250,000 vide one Affin Islamic Bank Berhad cheque for the purchase of the shares, when in fact the money was not used for that purpose.

Ismail was charged under Section 87A(b) of the Securities Industry Act 1983 for the first offence which is punishable under Section 88B of the Act.

The provision carries a maximum jail term of 10 years and a minimum fine of RM1 million.

Ismail faces a second charge for the same offence committed in 2008, under the Capital Markets and Services Act 2007, which came into effect in September 2007.

According to the charge sheet, he had between July 15, 2008 and Nov 21, 2008, again committed fraud upon Kopro by causing Kopro to give him a sum of RM100,000 vide two Affin Islamic Bank Berhad cheques for another purchase of the Proton shares, when in fact the money was not used for that purpose.

This offence is punishable under Section 182 of the act. If convicted, he will face a maximum of 10 years’ jail and a minimum fine of RM1 million.

Azman fixed bail at RM50,000 and ordered that Ismail surrender his passport to the court.

He fixed Feb 6 for case mention.