Former investment banker jailed, fined for insider trading

In a statement issued yesterday, the SC said the Cabinet Special Committee on Anti-Corruption (JKKMAR) had approved its recommendation to require listed companies to put in place anti-corruption measures and a framework to promote the effective discharge of directors

KUALA LUMPUR: The Kuala Lumpur Sessions Court today convicted and sentenced a former investment banker for insider trading in the shares of PacificMas Bhd, the Securities Commission said.

Lim Bun Hwa, 42, was sentenced to six months jail and fined RM1mil after he pleaded guilty today to five charges of insider trading under section 188(2)(a) of the Capital Markets and Services Act 2007.

According to the charges, Bun Hwa had acquired 145,000 units of PacificMas shares while in possession of inside information between Dec 18 and Dec 31, 2007.

The inside information referred to in the charges related to the proposed take-over offer of PacificMas by Overseas Chinese Banking Corporation (OCBC), which was announced to Bursa Malaysia on Jan 4, 2008.

Bun Hwa was, at the time, a senior manager in the corporate finance department of CIMB Investment Bank Bhd.

At the material time, CIMB had been engaged by OCBC to advise it on the proposed take-over. Bun Hwa had pleaded guilty following a plea bargaining application under section 172C of the Criminal Procedure Code.

In 2017, Bun Hwa was charged together with Ewe Lay Peng, also a senior manager in the corporate finance department in CIMB, as well as Bun Hwa’s brother Lim Boon Cheng with respect to the insider trading activities in this case.

Following the plea of guilt by Bun Hwa, the charges against Boon Cheng were withdrawn. The court has fixed Oct 11 for trial dates to be fixed in the case involving Ewe.