SC charges Three-A Resources founder, 5 others

They face insider trading charges

PETALING JAYA: The Securities Commission (SC) has charged the founder and managing director (MD) of Three-A Resources Bhd (3A) alongside five other individuals with insider trading offences under Section 188 of the Capital Markets and Services Act 2007 (CMSA).

Fang Chew Ham, 69, (pic) who is 3A’s founder and MD, was charged together with his daughter and executive director Fang Siew Yee, 36, for communicating material non-public information to his brother Fong Chiew Hean.

The offence under section 188(3)(a) was alleged to have been committed on Sept 5, 2009.

The insider trading activity preceded the emergence of Wilmar International Ltd as a substantial shareholder in 3A in October 2009.

Prior to the emergence of the palm oil giant, which is owned by entities belonging to renowned tycoon Robert Kuok, 3A’s share price rallied sharply between September and October 2009.

During the one-month period, 3A’s share price more than tripled from 50 sen to a peak of RM1.59.

Additionally, Fong was charged with nine counts of insider trading. According to the SC, he had acquired 891,000 units of 3A shares between Sept 7 and Oct 5, 2009 through two accounts at PM Securities Sdn Bhd while in possession of the said information.

The SC further alleged that the material non-public information referred to in the charges relates to the collective venture between the businesses of 3A and 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 disclosed to Bursa Malaysia on Oct 5, 2009.

Chew Ham, Siew Yee and Fong all claimed trial. Kuala Lumpur Sessions Court judge Mat Ghani Abdullah fixed bail at RM250,000 for Fong, while bail for Chew Ham and Siew Yee was fixed at RM200,000.

Meanwhile, in a separate proceeding, the SC also charged Siew Yee under section 188(2) (a) for acquiring 2.72 million 3A shares between Aug 27 and Oct 5, 2009 while she was in possession of the said information.

Siew Yee, who faces a total of eight charges, was said to have acquired the 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) of the CMSA.

The charges against the five individuals were read out before Sessions Court judge Zulqarnain Hassan, with all five claiming trial.

Siew Yee was granted bail of RM250,000 while Chew Ham, Tan, Chew and Ong were each granted bail of RM150,000.

The offences under sections 188(2) and (3) of the CMSA are punishable with an imprisonment term not exceeding 10 years and a fine of not less than RM1mil.