The Securities Commission said on Tuesday the Kuala Lumpur Sessions Court had convicted and sentenced him for committing the CBT involving the company's funds.
“The charges for CBT were earlier tried together with four other charges under securities laws for furnishing false information to the stock exchange pertaining to LFE’s operating expenses,” it said.
Sessions Court Judge Hasbullah Adam sentenced Alan, 62, to three years imprisonment after he pleaded guilty to two CBT charges, through a plea bargain application under the provision of section 172C of the Criminal Procedure Code.
In June 2010, Alan was charged by the public prosecutor with two counts of CBT under section 409 of the Penal Code.
In May 2012, Alan was acquitted of the CBT charges at the end of the prosecution’s case.
However, the Court of Appeal overturned the acquittal and ordered Alan to enter his defence at the Sessions Court in November 2016.
Following a full trial involving 35 witnesses from prosecution and three for the defence, Alan decided to plead guilty before the decision in the case was to be delivered.
“In pleading guilty, Alan admitted to utilising the RM18.99mil of funds belonging to LFE which was meant to be used for the working capital of LFE’s wholly owned subsidiary, LFE International Ltd.
“Instead, Alan had used those funds to finance his personal subscription of shares in LFE and to repay his corporate debts,” it said.
On March 23, 2018, Alan was convicted and sentenced by the Court of Appeal to one year jail and a fine of RM1.2mil for four charges of making false disclosures to Bursa Malaysia under section 122B(b)(bb) of the Securities Industry Act 1983 and section 369(B)(b) of the Capital Markets and Services Act 2007 respectively in the quarterly financial statements of LFE for the financial year ended Dec 31, 2007.
Alan had started serving his sentence for those offences in March of this year.