47 criminal charges and one civil action filed in 2022 - SC

Publish date: Mon, 27 Mar 2023, 02:40 PM

KUALA LUMPUR: The Securities Commission (SC) has initiated 47 criminal charges against six individuals for various securities offences and a civil enforcement action against five individuals in 2022.

In its Annual Report 2022 released today, the SC said in civil action, a total of RM4.58 million was disgorged from six individuals who entered into regulatory settlements.

Meanwhile, a further RM3.67 million was disgorged from one individual through a consent judgment entered into with the SC.

"As for contested cases, the SC was successful in obtaining judgments against five individuals for various securities breaches.

"They have been ordered to pay disgorgement sums amounting to RM10.74 million," said the regulartory oversight body.

Last year, the amount disgorged stood at RM27.94 million, while a total of RM5.8 million in civil penalties were also obtained by the SC for 2022.

As of Dec 31, 2022, the SC said a total of RM1.53 million was restituted to 284 investors, while a further RM815,549 was earmarked for further restitution involving 392 investors.

"Through the SC's civil enforcement actions, one individual was restrained from trading in the stock exchange while six more individuals were barred from becoming directors of public-listed company (PLCs)," it said.

On criminal charges, the commissioner said that 47 criminal charges against six individuals for various securities offences including securities and derivatives fraud, money laundering, unlicensed activities as well as non-compliance of notices issued by the SC's Investigating Officer in connection with an investigation.

In 2022, the SC managed to secure convictions against nine individuals involved in various breaches of securities laws such as market manipulation, unlicensed activities, false financial disclosures and failure to appear before an Investigating Officer of the SC in connection with a money laundering investigation.

"The sentence imposed by the courts upon these convictions were imprisonment terms ranging from one day to one year, and total fines amounting to RM12.96 million," it said.

In the meantime, the SC with the written consent of the public prosecutor (PP) also issued compound notices against four individuals and one PLC for false financial disclosures and against one individual for falsification of records which resulted in total compound payments amounting to RM16 million.

As for criminal appeals, the SC obtained two favourable outcomes at the Court of Appeal and High Court respectively for offences involving criminal breach of trust and misleading financial disclosures.

Last year, there were 36 ongoing cases at various levels of courts from the Sessions Court up to the Federal Court involving 56 individuals or entities.

In terms of the nature of cases, 31 per cent were related to insider trading, 22 per cent linked to corporate misconduct and 17 per cent involving money laundering.

This was followed by 14 per cent cases regarding securities fraud, 11 per cent cases of unlicensed activities and five per cent market manipulation.

On other development, the SC made 18 requests for investigative assistance to 10 foreign supervisory authorities under the Multiliteral Memorandum of Understanding International Organisation of Securities Commissions (IOSCO MMoU).  

  - Bernama

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