Ex-director jailed a day, fined RM1 mil for insider trading

KUALA LUMPUR: A former director of a food supplier company was sentenced to one day in jail and fined RM1 million, in default one year’s jail, by the Sessions Court here today after he pleaded guilty to nine counts of insider trading to allow him to acquire 891,000 units of Three-A Resources Berhad shares 10 years ago.

Judge Syed Faisal Syed Amir meted out the sentence on Fong Chiew Hean, 83, after he changed his plea to guilty during the trial proceedings today.

The court ordered the accused to serve the jail term from today.

Fong was charged with nine counts of illicitly acquiring 891,000 share units in the company through the accounts of two individuals, while in possession of confidential information on a proposed merger of two companies, Three-A Resources Berhad and Wilmar International Limited, which could influence the price of the share units.

The offence was committed at Bursa Malaysia Securities Berhad, Exchange Square, Bukit Kewangan, here between September and October 2009.

The charge, under Section 188(2)(a) of the Capital Markets and Services Act 2007 (Act 671), carries a maximum jail term of 10 years and a fine of not less than RM1 million, on conviction.

Prosecuting officer from the Securities Commission, Izuddin Mohamad, prosecuted while Fong was represented by lawyer Hazman Ahmad.