KUALA LUMPUR: The Securities Commission (SC) secured nine criminal convictions and RM13.1mil in court fines last year, says Finance Minister II Datuk Seri Amir Hamzah Azizan in response to concerns over "corporate mafia" activities in the capital market.
He said civil action taken by the regulator last year also saw the courts ordering the disgorgement of illegal profits and civil penalties totalling RM20.1mil.
A further RM9.08mil was obtained through regulatory settlements in the same period, he added.
"More importantly, RM1.98mil has been returned to 239 investors.
"At the same time, RM8.6mil has been allocated for restitution involving 933 investors," he said during Minister's Question Time in the Dewan Rakyat on Thursday (Oct 8).
Khoo Poay Tiong (PH-Kota Melaka) had asked about the SC's enforcement record.
Khoo said the SC often became a target whenever the "corporate mafia" issue was raised, and asked how far its enforcement had shown firmness and effectiveness in protecting investors and upholding the integrity of the capital market.
Amir Hamzah said the SC had two main mandates under the Capital Markets and Services Act 2007 (CMSA), namely to develop and to regulate the capital market.
He said the commission could take criminal or civil action depending on the nature and seriousness of a breach, in order to punish offenders, recover investors' money and preserve confidence in the market.
"The record shows the SC has succeeded in taking action against those who violate the provisions of the CMSA," he said.
He said the momentum continued this year, citing a High Court decision on Feb 20 that upheld the convictions of Su Eng Kooi and Yap Choong Seong.
The pair were each sentenced to one year's jail and fined RM1mil per charge of carrying out capital market activities without a licence.
On July 15, Muhamad Fadzli Jamaluddin, a former director of Kyaputen Sdn Bhd, was sentenced to five years in jail for unlicensed fund management and money laundering.
Amir Hamzah said the case involved six victims and losses of RM1.263mil.
On the civil front, Amir Hamzah said the court ordered the defendants in SC v Tey Por Yee and others, a securities fraud case, to pay RM100.6mil.
This was on top of civil penalties of between RM350,000 amd RM1mil, he added.
In a separate case involving the SC, he said the appellant was ordered to pay RM2.04mil as well as costs to the commission.
"These are examples from this year.
"It is clear that the SC has been effective in protecting investors' rights and taking appropriate action based on what is provided under the law," he added.
