Former managing director jailed and fined RM1 mil for insider trading

THE Kuala Lumpur Sessions Court today convicted and sentenced former managing director of DIS Technology Holdings Bhd, Cheah Yew Keat, for insider trading which is an offence under section 188(2)(a) of the Capital Markets and Services Act 2007 (CMSA).

Sessions Court Judge Hasbullah Adam sentenced Cheah, 63, to one-day jail and a fine of RM1 mil (in default 12 months imprisonment) after he pleaded guilty to one charge of insider trading under section 188(2)(a) of the CMSA.

“His admission to the other four charges were also taken into account for sentencing, through a plea bargain application under section 172C of the Criminal Procedure Code,” the Securities Commission (SC) pointed out in a statement.

The SC charged Cheah on Oct 10 last year for disposing 2.88 million shares in DIS Technology between March 1 and March 4, 2010 via accounts belonging to his personal assistant’s husband, Chuah Ni.

This occurred while Cheah was in possession of material price sensitive information which was not generally available, namely the alleged misstatement of DIS Technology’s quarterly financial reports between 3Q 2008 and 4Q 2009 which would significantly impact the company’s financial results. – Dec 23, 2020

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