THE Court of Appeal has affirmed the High Court’s decision in November 2020 that found senior lawyer Datuk Sreesanthan Eliathamby had engaged in insider trading of Worldwide Holdings Bhd (Worldwide) shares in 2006.
Sreesanthan had acquired a total of 600,000 Worldwide shares between June 7 and July 11, 2006 while in possession of material non-public information related to the proposed privatisation of Worldwide by Perbadanan Kemajuan Negeri Selangor (PKNS).
At the material time, Sreesanthan was a senior partner in a law firm which was engaged to act as the legal adviser of the proposed privatisation of Worldwide.
“In dismissing Sreesanthan’s appeal, the appellate court unanimously found no merits in the appeal and affirmed the judgment of the High Court as well as ordered Sreesanthan to pay costs of RM50,000 to the Securities Commission Malaysia (SC),” the market regulator pointed out in a media statement.
The judgment of the High Court ordered Sreesanthan to pay the SC RM1.99 mil which is three times the profits gained as a result of the insider trading.
In addition, he was also ordered to pay to the SC a civil penalty of RM1 mil and barred from being al rector of any listed company for 10 years starting from Nov 18, 2020.
Other cases
Apart from Worldwide, Sreesanthan had on Oct 13 last year agreed to pay RM900,000 disgorgement of profits as part of a regulatory settlement agreement with the SC for insider trading of the shares of Maxis Communications Bhd, UEM World Bhd and VADS Bhd.
Following this settlement, the SC with the consent of the public prosecutor withdrew related criminal proceedings against Sreesanthan and its appeal against his acquittal in another case for insider trading of Sime Darby Bhd shares.
However, this settlement does not affect the SC’s on-going civil proceeding against Sreesanthan in relation to his acquisition of 600,000 Worldwide shares where he was found liable by the High Court on Nov 4, 2020 and ordered to pay to the SC a sum of RM1.99 mil in disgorgement, a civil penalty of RM1 mil and barred from holding directorships of public listed companies for a period of 10 years effective Nov 18, 2020. – Sept 6, 2022
