Two directors jailed and fined over Suremax share manipulation

2011 Press Releases

Kuala Lumpur, 12 January 2011

Two directors jailed and fined over Suremax share manipulation

The Kuala Lumpur Sessions Court today sentenced Datuk Phillip Wong Chee Kheong and Francis Bun Lit Chun to 24 months imprisonment and a fine of RM 3 million (in default 6 months imprisonment ) and 3 months imprisonment and a fine of RM2 million (in default 6 months imprisonment) respectively for their involvement in the manipulation of Suremax Group Berhad (Suremax) shares.

In passing the sentence, Judge Komathy SM Suppiah said "The Court has to set imprisonment terms as the new benchmark in securities cases. The securities market should be real and genuine. Market manipulation is a serious offence affecting the confidence of investors and thus imprisonment sentence should be meted out."

On 7 January 2011, Datuk Phillip, 48, and Francis Bun Lit Chun, 41, were convicted under s84(1) of the SIA for creating a misleading appearance of active trading in the shares of Suremax by trading in nine accounts without any change in the beneficial ownership of the shares on the stock exchange. They had been charged on 25 October 2005 with 38 witnesses being called by the prosecution. Both accused testified when the defence was called.

The SC will take whatever action necessary to protect investors and to maintain a fair and orderly capital market and we will continue to proactively pursue market misconduct cases because such activities severely undermine investor confidence and tarnish the reputation of the Malaysian capital market.