Published: Wednesday January 12, 2011 MYT 4:14:00 PM
Updated: Wednesday January 12, 2011 MYT 5:45:54 PM
Two former directors jailed, fined for stock market manipulation
By M. MAGESWARI
KUALA LUMPUR: Former Impetus group executive director Datuk Philip Wong Chee Kheong was jailed 24 months and fined RM3mil for stock market manipulation.
Another former executive director of the investment holding company, Francis Bun Lit Chun was jailed three months and fined RM2mil for a similar offence.
Upon hearing the verdict, Bun was in tears while Wong was calm.The two are now bankrupts.
Sentencing the duo at 4pm Wednesday, Sessions Court judge S.M. Komathy Suppiah said the court has to set imprisonment as the new benchmark for market manipulation cases, in view of gravity of the offence.
"Market manipulation offences are serious as they undermine investors' confidence and the integrity of our securities market. It is in the interests of the country that the securities market should be real and genuine, free from manipulation," she said.
Thus, Komathy ruled that "persons who commit these offences must expect incarceration."
The judge, however, granted a stay of execution pending appeal.
In convicting Wong and Bun on Jan 7, Komathy held that both had created a misleading appearance of active trading of Suremax Group Bhd shares by buying and selling through nine CDS accounts.
Wong, 49, and Bun, 41, had claimed trial to having created a misleading appearance of active trading of Suremax shares.
They were said to have committed the offence by indirectly being concerned in transactions of sale and purchase of Suremax that did not involve any change in the beneficial ownership of the said shares.
The two were accused of committing the offence together with businessman Ivan Ng Chong Yeng at Bursa Malaysia Securities Bhd in Exchange Square, Bukit Kewangan, here, between Nov 24, 2004 and March 22, 2005.