Nicorp ex-CEO and substantial shareholder sued for insider trading

Securities Commission Malaysia building at Kuala Lumpur.

PETALING JAYA: The Securities Commission (SC) has filed a civil suit against Datuk Raymond Chan Boon Siew, for insider trading involving the shares of Naim Indah Corp Bhd (Nicorp), now known as Pegasus Heights Bhd.

In a statement, the SC said the suit, filed on July 5, 2024 at the Kuala Lumpur High Court, claimed that Chan communicated inside information to one Datuk Lim Thiam Huat, in breach of section 188(3)(a) of the Capital Markets and Services Act 2007 (CMSA).

“The SC also contended that further or in the alternative, Chan had procured Lim to acquire Nicorp shares, in breach of section 188(2)(b) of the CMSA.

“The act allegedly took place between the end of January 2012 and Feb 1, 2012.”

The SC said the inside information was in relation to Chan’s intended purchase of Nicorp shares from Crest Energy Sdn Bhd, which was a substantial shareholder of Nicorp at the material time.

“The information was subsequently announced by Nicorp to Bursa Malaysia on Feb 8, 2012.”

In its suit, the SC has claimed disgorgement of the theoretical profits amounting to RM25,447,500 and civil penalty of up to RM1mil against Chan.

Additionally, the SC is seeking an order to bar Chan from becoming a chief executive or director, or from being involved in the management of any public company for a period of five years from the date of judgement.

“An order barring Chan from trading on Bursa Malaysia for the same period is also sought.

Lim, who had acquired Nicorp shares on Feb 3 and 8, 2012, while in possession of the inside information, had entered into a regulatory settlement with the SC on Dec 22, 2023 for a breach of section 188(2)(a) of the CMSA.

“Insider trading is a serious misconduct in the capital market. The continuous enforcement by the SC demonstrates its commitment to address misconduct and abuses affecting the integrity of the capital markets.”

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