01 June 2015
The Securities Commission Malaysia (SC) filed suit against three individuals namely Chan Soon Huat, Goh Ching Liong and Leong Ah Chai, at the Kuala Lumpur High Court recently, for insider trading in the shares of WCT Berhad (WCT).

The SC filed the action against Goh and Leong on 26 May 2015 while the action against Chan was filed on 27 May 2015.

In the filings, the SC alleged that Chan had, in breach of section 188(2) of the Capital Markets and Services Act 2007 (CMSA), disposed a total of 2,414,600 shares and 1,236,700 warrants in WCT between 30 December 2008 and 5 January 2009 whilst in possession of material non-public information.  

The SC alleged that the material non-public information referred to in the action related to the cancellation of a contract for the proposed construction of the "Nad Al Sheba Dubai Racecourse" in the Emirate of Dubai, United Arab Emirates which was awarded to a joint-venture company set up by WCT and one Arabtec Construction L.L.C.. The announcement relating to the material information was made on 6 January 2009. 

Chan is said to have disposed the WCT shares and warrants through his own account and also the account of his daughter, Chan Choon Chew and his son-in-law, Leong Weng Wah.  

The SC also alleges that Leong had, in breach of section 188(2) of the CMSA, disposed 1,640,000 units of WCT shares between 2 January 2009 and 5 January 2009 whilst in possession of material non-public information. Goh, who at the material time was and still is currently the Deputy Managing Director of WCT is alleged to have communicated the material non-public information, in breach of section 188(3) of the CMSA, to Leong who had thereafter disposed of the said WCT shares.  

The SC is seeking a disgorgement of three times the profits earned by the defendants as a result of the insider trading. The SC is also claiming a civil penalty of RM1 million from each of the three defendants and that the defendants be barred from being a director of a public listed company.

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: cau@seccom.com.my.

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.

© Press Release 2015