Business brothers charged over misleading statements

MYT 8:38:18 PM

KUALA LUMPUR: Two brothers were charged at a Sessions Court here on Tuesday with furnishing misleading statements, involving some RM330mil, in relation to a listed investment holding company.

Ang Sun Beng, 62, and Ang Soon An, 58, were accused of committing the offences on four occasions in 2006 and 2007 while they were Welli Multi Corporation Bhd's managing director and executive director respectively.

According to the charges, Welli Multi Corporation had furnished a misleading statement contained in its 2005 annual report to the Securities Commission (SC) between April 10 and June 20 in 2006.

The company also allegedly furnished a misleading statement contained in its quarterly report for the financial period ended March 31, 2006 to Bursa Malaysia Securities Bhd between May 29 and June 13 in the same year.

Welli Multi Corporation was also accused of furnishing a misleading statement contained in its quarterly report for the financial period ended June 30, 2006 to Bursa Malaysia Securities on Aug 28, 2006.

The company also allegedly furnished a misleading statement contained in its quarterly report for the financial period ended Sept 31, 2006 to Bursa Malaysia Securities between Feb 27 and Feb 28 in 2007.

The Ang brothers, in their capacities as directors, are deemed to have committed the offences under Section 122B(a)(bb) read together with Section 122(1) of the Securities Industry Act 1983.

Both claimed trial to all charges.

A conviction of the offences are punishable under Section 122B of the same Act with a fine of up to RM3mil or a maximum 10 years' jail.

SC prosecuting officer Nur Ishqi Hayati Zakaria informed the court that the charges involved some RM330mil based on the commission's investigations.

She proposed a bail of RM500,000 for both the accused on condition that their travel documents were surrendered to court.

The prosecutor also said the SC believed the brothers were still shareholders of the company despite no longer being its directors.

Counsel J. Kuldeep Kumar said the proposed amount was too high, pointing out that it would result in his clients being incarcerated.

He asked for bail to be set at RM150,000 each, saying the purpose of bail was only to ensure attendance.

Kuldeep gave the assurance that his clients, who had cooperated with the SC in its investigations, would be present in court throughout the proceedings to defend themselves against the charges.

He added that the shares his clients owned had already been forced sold by the banks.

Judge Rozana Ali Yusoff set bail at RM150,000 each and ordered the surrender of the brothers' travel documents.

She fixed May 9 for a mention to hear a joint-trial application by the prosecution to allow lead counsel Datuk V. Sithambaram, who was not in court Tuesday, a chance to rebut.

Bail was posted.

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