Ex-bank manager jailed, fined RM1 million for insider trading

Reuters pic.

KUALA LUMPUR: A former senior manager of a bank was sentenced to six months’ jail and fined RM1 million by the Sessions Court here today on five counts of acquiring 145,000 units of PacificMas Bhd 11 years ago with inside information.

Judge Mahyon Talib handed the sentence down on Lim Bun Hwa, 42, who pleaded guilty to all charges.

Bun Hwa was charged, as an insider, with acquiring the shares through the Central Depository account belonging to his brother, Lim Boon Cheng, 48, through information that was not generally available.

The information was on the proposed conditional takeover offer by OSPL Holdings Sdn Bhd to acquire all the voting shares in PacificMas not already owned by OSPL Holdings, whereby with such information, a reasonable person would expect it to have a material effect on the price or value of the shares concerned.

Bun Hwa was charged with committing the offences at Bursa Malaysia Securities Bhd, Exchange Square, Bukit Kewangan here between Dec 18 and Dec 31, 2007.

He was charged under Section 188 (2) of the Capital Markets and Services Act 2007, which provides imprisonment of up to 10 years and a fine of not less than RM1 million upon conviction.

Earlier, the prosecution conducted by deputy public prosecutor from the Securities Commission, Hashley Tajudin, informed the court that the accused had submitted a plea bargaining under Section 172C of the Criminal Procedure Code in July.

Bun Hwa, represented by lawyer Chong Loon Ming, paid the fine. He will serve his time at the Kajang prison.