Sexagenarian charged with securities fraud

Securities Commission Malaysia

KUALA LUMPUR, Jan 17: Securities Commission Malaysia (SC) yesterday charged a 67-year-old man for defrauding Koperasi Pelaburan Pekerja-Pekerja Proton Bhd (KOPRO) of its investments of RM350,000 for the purchase of securities between August 2007 and November 2008.

According to a press release, Ismail Basir was also alleged to have represented to KOPRO that he was a remisier, when in fact he was never licensed by the SC.

KOPRO is a cooperative society established for the employees of Proton Holdings Bhd.

Ismail was brought to the Kuala Lumpur Sessions Court yesterday morning to face securities fraud charges under Section 87A(b) of the Securities Industry Act 1983 (SIA) and Section 179(b) of the Capital Markets and Services Act 2007 (CMSA).

Section 87B stated that it shall be unlawful for any person directly or indirectly in connection with the purchase or sale of any securities, to use any device, scheme or artifice to defraud and to engage in any act, practice or course of business which operates or would operate as a fraud or deceit upon any person or to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made in the light of the circumstances under which they were made, not misleading.

Under Section 179 of the CMSA, the use of manipulative and deceptive devices shall be unlawful for any person, directly or indirectly in connection with the subscription, purchase or sale of any securities by using any device, scheme or artifice to defraud and to engage in any act, practice or course of business which operates or would operate as a fraud or deceit upon any person or to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made in the light of the circumstances under which they were made, not misleading

Each offence carries a penalty of an imprisonment term of not more than 10 years and a fine not less than RM1 million.

Ismail, who was unrepresented, pleaded not guilty and claimed trial.

Sessions Court Judge Azman Ahmad fixed bail at RM50,000 with one surety and for the accused to report to the SC Investigating Officer every first week of the month until the completion of the trial.

Members of the public who wish to check if an entity or a person is licensed by the SC may access the SC’s database on general information and status of representatives, companies and individuals who are or were previously licensed or registered with the SC at https://www.sc.com.my/licensing/public-register-of-licence-holders/ — DayakDaily