SC Malaysia charges Kencana Petroleum ex-director for insider trading
Yeow Kheng Chew was charged at the Kuala Lumpur Sessions Court for acquiring 1,159,000 shares on 8 July 2011 whilst in possession of inside information.
The SC alleged that the inside information referred to in the charges relates to the proposed merger of Kencana Petroleum Bhd and SapuraCrest Petroleum Bhd. The proposed merger was announced to Bursa Malaysia on 11 July 2011.
Yeow is said to have acquired the said shares through the account of Paulene Chee Yuet Fang maintained at HwangDBS Investment Bank. Chee and her remisier Tan Yee Chee were charged for abetting Yeow in the commission of the offences.
The charges against Yeow, Chee and Tan were read out before Sessions Court Judge Tuan Zulqarnain Bin Hassan. All three claimed trial to the respective charges preferred against them.
The judge ordered for a joint trial and set 11 August as the next mention date. Yeow was granted bail of RM1 million with two sureties while Chee and Tan were granted bail of RM800,000 with two sureties each.
The offence of insider trading is punishable with an imprisonment term not exceeding 10 years and a fine of not less than RM1 million. A person guilty of abetting the crime faces the same punishment. ■