THE Securities Commission Malaysia (SC) has successfully proven its claim in a civil suit against Patimas Computers Bhd’s former executive director Datuk Ng Back Heang for insider trading.
This had led to the High Court yesterday (Nov 16) having ordered Ng, 68, to pay the SC a sum of RM1.24 mil which is three times the losses he avoided as a result of the insider trading.
The case was heard by Judicial Commissioner Tuan Muhammad Amin Wan Yahya, who found that Ng had breached Section 188(2)(a) of the Capital Markets and Services Act 2007.
Ng was also ordered to pay a civil penalty of RM700,000 to the SC. He is barred from being appointed as a director of a public listed company for five years beginning from today (Nov 16).
The High Court also granted the SC RM100,000 in costs.
The breach occurred when Ng disposed 16.5 million Patimas shares that he owned between May to July 2012 while in possession of material non-public information. The said information was in relation to audit queries and issues about suspicious transactions between Patimas and its top debtors.
“Insider trading continues to be a high priority for the SC,” the market regulator pointed out in a statement. “The judgment sends a strong and clear message to the public that insider trading where inside information is misused for personal gain will not be tolerated by the SC.”
This is the second successful claim by the SC against a former director of Patimas for insider trading.
In April this year, the SC’s civil claim against the former deputy chairman of Patimas Datuk Raymond Yap Wee Hin was allowed with the High Court ordering Yap to pay to the SC a sum of RM3.28 mil which was three times the loss avoided by him as a result of insider trading activities in addition to a civil penalty of RM1 mil. – Nov 17, 2022
Main photo credit: The Edge Markets
