KUALA LUMPUR: The High Court here has acquitted former Supermax Corp Bhd managing director Datuk Seri Stanley Thai for insider trading in relation to APL Industries Bhd (APLI) shares.
Judicial Commissioner Azhar Abdul Hamid made the order of discharge and acquittal after allowing the appeal by Thai, whose real name is Thai Kim Sim, after ruling that the conviction was unsafe.
He also acquitted former remisier Tiong Kiong Choon who was charged together with Thai.
“After hearing submissions from both parties, the court found that the conviction is not safe.
“Therefore, the conviction and sentence are set aside, ” he said yesterday.
The court also ordered for the fines to be returned to the accused persons.
DPP Mohd Hafiz Mohd Yusof from the Securities Commission (SC) appeared for the prosecution while lawyers Shamsul Sulaiman and Datuk Mohd Yusof Zainal Abiden represented Thai and Tiong respectively.
On Nov 24,2017, Thai was sentenced to a five-year jail term and fined RM5mil for insider trading while Tiong was sentenced to five years in jail and fined RM10mil.
They were charged with insider trading in December 2014.
Thai was convicted for communicating non-public information between Oct 25,2007, and Oct 29,2007, to Tiong.
Tiong was convicted for two counts of disposing of a total of 6,208,500 APLI shares while in possession of the same non-public information via accounts belonging to his mother-in-law and his mother. At the time of the commission of the offence, Tiong was also a licensed intra-day trader with a stock broking company.
This is the first time the courts have handed down a custodial sentence for insider trading after a trial.
Insider trading offences, under Sect 188 of the Capital Markets and Services Act 2007 (CMSA), carry a mandatory prison sentence not exceeding 10 years and a fine of not less than RM1mil.
APLI, a rubber glove maker that was delisted from Bursa Malaysia in February 2009, used to be a 14.09% associate of Supermax.
Supermax became its substantial shareholder in February 2005 by acquiring 12.95% equity interest.
Supermax subsequently decided to end its investment in APLI consisting of 49.98 million shares by making a full write-off totalling RM16.69mil.
Thai retired from his post as APLI executive chairman and managing director in December 2008.
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