Court of Appeal jails former directors for market manipulation

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The Court of Appeal today unanimously upheld convictions against Dato’ Phillip Wong Chee Kheong, 54, and Francis Bun Lit Chun, 46, former directors of the Impetus Group of Companies for manipulating Suremax Group Berhad shares over a period of four months.

The manipulation which was committed between November 2004 and March 2005 resulted in charges brought by the Securities Commission Malaysia (SC) in October the same year. The Sessions Court convicted Dato’ Phillip Wong and Bun in 2011 after hearing 38 prosecution witnesses.

Today, the President of the Court of Appeal Justice Md Raus Shariff together with Court of Appeal Justice Hamid Sultan Abu Backer and Justice Idrus Harun affirmed the convictions and sentences that were meted out by the Sessions Court. As a result, Dato’ Phillip Wong is jailed for two years and fined RM3 million, while Francis Bun is jailed for three months and fined RM2 million. The jail sentences commenced today.

In persuading the Court of Appeal to consider the gravity of the offence committed, SC’s prosecution team highlighted that market manipulation is not a victimless offence. Many account holders whose accounts were used in this manipulation, suffered millions of ringgit in losses. The manipulation committed in this case had the effect of increasing the price of Suremax shares by 77% in a span of four months.

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SECURITIES COMMISSION MALAYSIA

Members of the Media may contact the Corporate Affairs Department at 03-62048305 (Lau Mei San), 03-62048265 (Delyana Nordin), 03-62048242 (Mohamad Lutfi Hakim), or fax no.: 03-62015078 or e-mail: [email protected]

Background information:

The Securities Commission Malaysia (SC), a statutory body reporting to the Minister of Finance, was established under the Securities Commission Act 1993. It is the sole regulatory agency for the regulation and development of capital markets. The SC has direct responsibility for supervising and monitoring the activities of market institutions, including the exchanges and clearing houses, and regulating all persons licensed under the Capital Markets and Services Act 2007. More information about the SC is available on its website at www.sc.com.my. Follow SC on twitter at @SecComMy for more updates.

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