Former investment banker jailed and fined for insider trading

KUALA LUMPUR: The Kuala Lumpur Sessions Court has sentenced a former investment banker to six months jail and fined him RM1mil for insider trading.

The Securities Commission (SC) said former investment banker Goh Keng Huat was charged with insider trading in the shares of Road Builder Holdings Bhd (RBH).

“Goh, 48, pleaded guilty to one charge of insider trading under Section 89E(2) of the Securities Industry Act 1983. According to the charge, Goh had acquired 100,000 units of RBH shares while in possession of inside information on Sept 4, 2006.

“Goh was at the material time the equity markets head of Aseambankers Malaysia Bhd (now known as Maybank Investment Bank Bhd).”

The SC said Goh was sentenced to six months imprisonment and a fine of RM1mil, in default six months imprisonment, following a plea bargaining application under the provision of Section 172C of the Criminal Procedure Code.

“The court also took into consideration nine other similar charges against Goh for his purchase of 751,600 RBH shares between Sept 5, 2006 and Oct 16, 2006.”

On Oct 10, 2017, the SC charged Goh with 10 counts of insider trading and his wife, Wee Siew Ling, with 10 counts of abetting Goh in the commission of the offences by allowing him to acquire the RBH shares through her trading accounts.

Meanwhile, the SC said in a separate statement that former LFE Corp Bhd executive director Alan Rajendram Jeya Rajendram was found guilty in the sessions court of committing criminal breach of trust (CBT) in respect of the company’s funds amounting to RM18.99mil and jailed three years.

“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,” said the SC.

It added that Rajendram, 62, had pleaded guilty to two CBT charges through a plea bargain application under the provision of Section 172C of the Criminal Procedure Code.

“Following a trial involving 35 witnesses from prosecution and three for the defence, Rajendram decided to plead guilty before the decision was to be delivered.

“In pleading guilty, Rajendram 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, Rajendram had used those funds to finance his personal subscription of shares in LFE and to repay his corporate debts.”

Rajendram started serving his sentence for the offences last month.

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