Lawyer Sreesanthan to pay SC penalty of RM900,000

PETALING JAYA: Senior corporate lawyer Datuk Sreesanthan Eliathamby, who was recently acquitted of insider trading, has agreed to pay the Securities Commission (SC) disgorgement of profits worth RM900,000 for another insider trading offence involving the shares of Maxis Communications Bhd, UEM World Bhd and VADS Bhd.

In a statement yesterday, the SC said this settlement was part of the SC’s regulatory settlement agreement.

Following the settlement with the regulator for insider trading, the SC added that it had now withdrew related criminal proceedings against Sreesanthan, and its appeal against his acquittal in another case for insider trading of Sime Darby Bhd shares.

This week, the lawyer was acquitted by the Kuala Lumpur Sessions Court of insider trading of Sime Darby’s shares in 2006.

In July 2012, Sreesanthan was charged for insider trading involving Sime Darby, Maxis Communications, UEM World and VADS shares between October 2006 and September 2008, when he was a senior partner of a law firm involved in the corporate exercises of these companies.

However, the SC said the recent settlement did not affect another ongoing civil proceeding against the lawyer with regards to his acquisition of 600,000 Worldwide Holdings Bhd shares between June and July 2006 while in possession of material non-public information.

“In this proceeding, Sreesanthan was found liable by the High Court on Nov 4, 2020 and ordered to pay to the SC a sum of RM1,989,402 in disgorgement, a civil penalty of RM1mil and barred from holding directorships of public listed companies for a period of 10 years, effective Nov 18, 2020.

Sreesanthan has filed an appeal to the Court of Appeal against this decision.

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