Former WCT deputy MD Goh Chin Liong and Ara Holdings director Leong Ah Chai fined RM5.83 million over insider trading
By Bernama - December 23, 2022 @ 3:21pm
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| Goh Chin Liong |
The Securities Commission Malaysia (SC) today won a civil suit against former deputy managing director of WCT Bhd Goh Chin Liong and director of Ara Holdings Sdn Bhd, Leong Ah Chai.
KUALA LUMPUR: The Securities Commission Malaysia (SC) today won a civil suit against former deputy managing director of WCT Bhd Goh Chin Liong and director of Ara Holdings Sdn Bhd, Leong Ah Chai.
In a statement, the SC said High Court Judge Datuk Ahmad Zaidi Ibrahim ordered Goh and Leong to pay a total of RM5.83 million to the SC after finding that the commission had successfully proven an insider trading case against both defendants.
Goh and Leong were each ordered to fork out a sum of RM2.54 million.
"This is equivalent to three times the losses avoided by Ara Holdings through Leong as a result of the insider trading. The court also ordered both defendants to each pay a civil penalty of RM300,000 and awarded costs of RM75,000 each to the SC," the commission said.
In the suit filed in 2015, the SC claimed that Goh, 63, and Leong, 62, had breached Sections 188 (2) and 188 (3) of the Capital Markets and Services Act 2007 (CMSA) when Goh communicated material non-public information to Leong.
"The latter (Leong) then disposed of a total of 1,640,000 WCT shares in Ara Holdings' trading account between Jan 2 and 5, 2009. At the material time, Goh was the deputy managing director of WCT," said the SC.
The SC said the material non-public information was in relation to the cancellation of a contract for the proposed construction of the "Nad Al Sheba Dubai Racecourse" in Dubai, which was awarded to a joint-venture company set up by WCT and one Arabtec Construction LLC.
At the time, Leong was a director of Ara Holdings, which was one of the 30 largest shareholders in WCT, the SC added. - Bernama