The Securities Commission said in a statement that Lee Han Boon and Saipuddin Lim Abdullah both pleaded guilty for furnishing false information to the stock exchange in relation to the fabric manufacturer’s revenue for the fourth quarter ended March 31, 2008.
Of the reported revenue of RM91.13mil, RM51.5mil was false, the capital markets regulator said.
Lee and Saipuddin also respectively faced four other counts of the same offence in relation to Axis’ consolidated income statement for all four quarters in its financial year ended 2007.
The SC said the Sessions Court judge Azman Ahmad took into consideration these in sentencing Lee and Saipuddin.
Lee, 36, a former substantial shareholder and executive director of Axis was sentenced to seven months’ imprisonment and fined RM200,000.
Saipuddin, 58, also a former substantial shareholder and executive director of Axis, was sentenced to 12 months’ imprisonment.
The trial against Lee and Saipuddin started in 2015.
The SC said it would continue against two other individuals, Koh Tee Jin and Lee Koon Huat, who were charged and jointly tried with Lee and Saipuddin for the same offences.
The sentences were meted out by the Sessions Court following Lee and Saipuddin’s applications for a plea bargain under the provision of section 172C of the Criminal Procedure Code.
Axis Inc securities were de-listed in mid-2011.
Did you find this article insightful?