Chong Ket Pen Charged for Fraud & Defraud?
Protasco Bhd crash mastermind Chong Ket Pen slapped with 189 charges for treason, corporate fraud and market manipulation scheme? - News To Be
Disclaimer: "NEWS TO BE" takes a future sneak peek of what prosecutors in the other advance market would have done by TODAY when comes to professional corporate crime investigation.
Here is the simulation of what might happen when the full investigation is completed. This is NOT the actual news but for academic study only as a reminder to those who praise greed and crime in corporate world. Besides the prosecution and amount of charges, all information are official, public, and facts source from Bursa Malaysia and Protasco Bhd financial reports. The assumptions are for simulation purposes only.
MALAYSIA: The masterminds of Malaysia's "most audacious" corporate fraud and market manipulation scheme cheated Protasco Bhd shareholders, Bursa Malaysia, Securities Commission, PDRM, and entire 31 million citizen of Malaysia as a whole, as part of a plan that resulted in the 2014 fradulant misrepresentation to defraud and illegal taken the control of Protasco Bhd from Protasco Bhd's benefical owners, prosecutors said as a trial began against the two alleged perpetrators.
Malaysian civil servent turned Protasco Bhd Group managing Director John Chong Ket Pen faces 189 charges while his son Kenny Chong Ther Nen the chief executive officer of Protasco Development Sdn Bhd faces 178 charges for orchestrating the fraud, Malaysia prosecutors said as the trial started Monday.
The father and son pleaded not guilty to the charges.
"This is a prosecution for the most serious case of stock market manipulation in Malaysia," Deputy Public Prosecutor (DPP) said in an opening statement which lasted almost two hours.
John and Kenny (Chongs) aided by a third person, artificially recycled ill-gotten money from Protasco to buy more Protasco shares for themselves, and along the process manipulated the price of shares in Protasco Bhd which is listed on the Malaysia stock exchange, DPP said.
The two were accused of conducting trades through accounts that were opened with 4 financial institutions, including foreign and local brokerages and private banks. Namely UOBM NOMINEES (TEMPATAN) SDN BHD, CIMSEC NOMINEES (TEMPATAN) SDN BHD, RHB CAPITAL NOMINEES (TEMPATAN) SDN BHD, and ALLIANCE GROUP NOMINEES (TEMPATAN) SDN BHD. Trades were using ill-gotten money including Chong Ket Pen personal accounts and indirectly through Penmacorp Sdn Bhd.
The trigger of illegal money started from RM10 million Chongs kick back money recycled from Protasco Bhd to RS Maha Niaga Sdn Bhd and paid directly to United Overseas Bank (Malaysia) Berhad at Plaza Damansara, Kuala Lumpur, on 13 February 2013. Through this money, more Protasco shares are purchased. The power abuse which self raise salary from RM600k per year to RM4.2 million per year, together with artificial dividend paid, where all these ill-gotten money recycled to buy even more Protasco shares, resulted in Chongs share holding rises from 15.5% on 3 November 2012 to 29.5% on 29 March 2019.
The other charges of fraudulant misrepresentation which saw the evidence of declining profit margin on JKR road concession, especially the RM4.2 billion JKR contract obtained from 4 April 2018, a month before Malaysia general election. JKR contracts are paid from tax payers, and the manipulation of 31 million people of Malaysia's tax payer money through potential transfer pricing and graft is national treason.
Among the charges are six each for deceiving Protasco Bhd board and PDRM to file false police report on Protasco Bhd major shareholders Dato' Tey Por Yee and Dato' Ooi Kock Aun in order to trigger the force selling of their securities, resulted in the loss of their Protasco Bhd shares, so that Chongs got control of Protasco Bhd, according to a statement from the prosecutors. Protasco Bhd shares are artifucially manipulated to rise and plunge during September 2014 until March 2019.
September 2012, Dato' Tey Por Yee was approached by Chongs to spend RM100 million to take over Protasco Bhd shares, and later on September 2014 being setup with a blame which cause the loss of his investment and control in Protaco Bhd to Chongs.
Chongs after taken control of Protasco by manufactured the RM68 million blame on some oil asset ownership non disclosure allegation with the intention to scuttle and illegalised a genuine transaction, had gone money stripping frenzy in Protasco Bhd.
Besides the illegal kickbacks, salaries, and dividends, Chong abuses his power and use Protasco Bhd to buy 3 sports cars for his 3 sons, namely Kenny Chong Ther Nen, Benny Chong Ther Vern, and Danny Chong Ther Shern. Chong Ket Pen had recently announced through Protasco Bhd the purchase of a land project in Tampin for RM48.6 million to be paid in cash to Chong Ket Pen from Protasco Bhd. Chongs had taken directly over RM100 million cash benefits and suspected another RM100 million money luandered through transfer pricing.
To finance such humongous sum of cash payout, Chongs caused Protasco Bhd to carry RM622 million debt as of 31 December 2018, a jaw dropping gearing ratio compared to RM353 million equity. Compared to year 2012 audited account of RM298 million total debt, the increase of RM324 million debt was taken from banks such as UOB Bank which saw RM244 million of those cash paid to CKP and sons personal accounts, and another RM70 million cost "spent on Chong Ket Pen" reckless activities.
The result is the fraud, to defraud, and market manipulation, which caused Protasco Bhd share price to drop from RM2.30 (split RM1.34) to RM0.255 as of 29 March 2019. Chongs continue to pick up more Protasco Bhd shares directly and indirectly, using ill-gotten money from the spiral.
The trial is the culmination of years of investigation into a stock market rout that has been blamed for falling share price of Protasco Bhd.
The rout spurred brokers to clamp down on margin lending and has dented trading sentiment.
Malaysia meted out its first jail sentence for the Protasco stock rout last week, with the prosecutor calling the crash the result of the “most audacious, extensive and injurious market manipulation scheme ever” in the Bursa Malaysia.
Ho Chun Fuat who is Chief Finance Officer of Protasco Bhd was sentenced to 36 months imprisonment in a Malaysia court Wednesday.
Ho, who earlier pleaded guilty to two of six charges under the SECURITIES COMMISSION ACT, helped two others in perpetuating the scheme, prosecutors said last week. Ho light sentence was suspected turn witness on entire fraud scheme against the two mastermind.
John Chong Ket Pen who is Group Managing Director of Protasco Bhd might be sentenced to 20 years imprisonment.
The crash wiped RM500 million off the value of shares of Protasco Bhd from year 2014 to yeat 2019. RM4.2 billion JKR contract saw 31 million Malaysia people cheated by dubious and rip off rate which was designed to siphone money to CKP's personal secret profits through sophisticated transfer pricing arrangement.
The board of directors of Protasco Bhd have said they don’t know what caused the sudden declines in cash and share price. Banks and brokers have sued their clients and others to recover at least RM100 million from the stock rout.
John Chong and Kenny Chong used accounts held at firms including UOBM NOMINEES (TEMPATAN) SDN BHD, CIMSEC NOMINEES (TEMPATAN) SDN BHD, RHB CAPITAL NOMINEES (TEMPATAN) SDN BHD, and ALLIANCE GROUP NOMINEES (TEMPATAN) SDN BHD, prosecutors said.
The financial institutions will give evidence that they didn’t know Chong Ket Pen and sons are instructing trades in the accounts, according to the prosecution.
UOB and Alliance were deceived into accepting shares of Protasco as collateral in extending financing, not knowing that the source of fund for those shares was ill-gotten, according to Monday’s prosecution statement.
The financing was used for margin trading to manipulate the shares, the prosecutor said, describing the process as a "vicious cycle of deception, cheating, and market manipulation."
The trial is expected to last at least until November.
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Discussions
Be the first to like this. Showing 7 of 7 comments
tey por yee nextnation also cheat investors,apa ini no bagi dia pergi sg buloh?
2019-04-02 00:39
Lol. “Also cheat”. Your father chong ket pen criminal just go to jail. Don’t need to paint other people bad to make excuse for his crime. Just answer to the prosecutor where Protasco money goes. Did he took RM4.2 mill salary, and use protasco bought 3 sports car for 3 retard sons. Where his money comes from and buy more protasco shares. If started with illegal money, all his shares and money are illegal.
Life sentence is too light. 3 sons all go behind bar.
CKP belongs to Kwong Tong Cemetery. There is no Hakka Cemetery to fit the Hakka crook heavy bags of stolen money and 3 illgotten sports cars.
2019-04-02 00:56
https://klse.i3investor.com/blogs/governancewatch/196130.jsp
Protasco Bhd going to pay another RM48’ to Chong Ket Pen? Bursa Malaysia sick or blind?
Chong Ket Pen and son Chong Ther Nen hang together will make another criminal record to hang Chong father and 3 sons for cheating.
2019-04-02 01:23
https://klse.i3investor.com/blogs/kianweiaritcles/200474.jsp
Protasco Bhd coming AGM.
Ask Hadenan Abdul Jalil Chong Ket Pen curi RM4 juta gaji tipu satu tahun betul ke?
Board approve Chong Ket Pen curi lagi RM48 juta beli tanah sampah Chong Ket Pen di Tampin ke?
Chong Ket Pen guna Protasco bayar gaji buta 3 anak sendiri dalam Protasco ke?
Wang PPAM ada pinjam banyak dari bank ke? Lapor rugi kenapa masih mahu jalan?
2019-04-03 09:58
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***quote***The financial institutions will give evidence that they didn’t know Chong Ket Pen and sons are instructing trades in the accounts, according to the prosecution. ***Unquote***typical malaysia style when a scandal disclosed...TAK TAU.....auditors, bursa, SC, board of directors, main media stream all TAK TAU lei. wakaka
2019-03-31 11:30