The Kuala Lumpur High Court has ruled that the Securities Commission Malaysia (SC) successfully proved its case against five individuals accused of perpetrating a scheme that defrauded and caused wrongful losses to four public-listed companies amounting to RM120.6 million.
The five defendants are Tey Por Yee, Lim Chye Guan, See Poh Yee, Francis Tan Hock Leong and Faizatul Ikmi Abdul Razak.
The four companies affected at the material time were Nexgram Holdings Bhd, R&A Telecommunication Group Bhd, Asdion Bhd and Ire-Tex Corporation Bhd.
The SC had filed a civil suit against the defendants on Nov 29, 2022, alleging that they had orchestrated a scheme to defraud the companies and cause wrongful losses.
According to the SC’s case, between December 2013 and July 2014, Tey, Lim, See and Francis Tan, acting in various capacities as directors and officers of the four listed companies, siphoned proceeds raised through fundraising exercises conducted by the companies.
Faizatul was alleged to have abetted or furthered the scheme.
The court ordered the defendants to pay RM100.6 million to the SC pursuant to section 360 of the CMSA.
They were also ordered to pay a combined RM2.65 million in civil penalties, comprising RM1 million against Tey, RM600,000 against Lim, and RM350,000 each against See, Francis Tan and Faizatul.
In addition, all five defendants were barred from acting as directors of, or being concerned or taking part directly or indirectly in the management of, any public-listed company for 10 years from the date of judgment.
The defendants were also ordered to pay RM500,000 in costs to the SC.
To safeguard the sums awarded under the judgment, the High Court further restrained the defendants from dealing with their assets until the amounts due had been paid in full.
