Posted earlier this year: How Much Fine For Cooking Your Books? Part III
- THE High Court has allowed the Securities Commission Malaysia’s (SC) appeal against the Sessions Court’s sentence of RM300,000 fine each on the former directors of MEMS Technology Bhd, Ooi Boon Leong and Tan Yeow Teck.
The High Court retained the Sessions Court’s original fine and enhanced the sentence with a six-month imprisonment term each following the appeal by SC for a higher sentence in view of the severity of the offence.
In February last year, Ooi and Tan, had pleaded guilty before the Sessions Court and were fined RM300,000 each for authorising the furnishing of misleading information to Bursa.
They recorded sales transactions that NEVER took place!
That's downright cheating in my opinion!!!
By recording sales transactions that NEVER existed and the stock market valued Mems as a growth stock and the company was handsomely valued some extra 500 million!
And the description of the fine? 'Providing misleading information' was way too kind. They fudged and they cheated on their books! And the fine of 300,000 and jail term of 6 months? That is absurb. Too kind.
With such a crime, how are we ever going to stop corporate crimes like this?
On Star Biz: Landmark decision for securities cases
- Wednesday November 9, 2011
Landmark decision for securities cases
By CHOONG EN HAN
PETALING JAYA: In a landmark decision for securities cases, two former directors of MEMS Technology Bhd saw their six-month jail terms imposed by the High Court being upheld by the Court of Appeal last Friday.
The Securities Commission said in a statement that the Court of Appeal affirmed that a custodial sentence was necessary in order to ensure that investors would not lose confidence in the local market and to deter potential wrongdoers.
“The Court of Appeal emphasised that knowingly furnishing misleading information to the stock exchange is a serious offence because potential investors, both foreign and local, rely on such information,” the commission said.
The two former directors of MEMS, which was de-listed in November 2010, were charged for authorising the furnishing of a misleading statement to Bursa Malaysia in MEMS's condensed consolidated income statement for the 12-month period ended July 31, 2007.
They were charged in the Sessions Court in Kuala Lumpur in 2009 for falsifying the company's reported revenue of RM73.416mil which contained over RM30mil of sales that did not take place.
Both Ooi Boon Leong and Tan Yeow Teck had on Feb 25, 2010 pleaded guilty to committing the offence and were fined RM300,000 each, upon which the public prosecutor appealed to the High Court on the ground that the sentence was manifestly inadequate.
Then in January 2011, High Court Judge Datuk Ghazali Cha imposed an additional six-months jail sentence to the fine of RM300,000, citing public interest as a reason for the increased sentence, pointing out that the offence affected the integrity of the capital market.
Ooi and Tan had then appealed to the Court of Appeal.
And how can they call it a landmark case?
Ironicaly on Star Biz also: Rajaratnam ordered to pay $92.8 million in SEC case
- Rajaratnam ordered to pay $92.8 million in SEC case
NEW YORK (Reuters): A federal judge ordered Raj Rajaratnam, the Galleon Group hedge fund founder sentenced to 11 years in prison for insider trading, to pay a record $92.8 million penalty in a related Securities and Exchange Commission civil case.
11 years in prison and US$92.8 million penalty!!!
Now this is what I will call a LANDMARK case!
Mems? It's still a joke. The penalty is way too light!
And do consider this May 2008 posting: Mems Asks For Support!!