Securities Commission Malaysia Charges Former Managing Director For Insider Trading

The Securities Commission Malaysia (SC) today charged Cheah Yew Keat (Cheah), former Managing Director (MD) of DIS Technology Holdings Berhad (DISTECH), with five counts of insider trading in DISTECH shares.

All five charges were for insider trading offences under section 188(2)(a) of the Capital Markets and Services Act 2007. Cheah is alleged to have disposed 2,884,300 units of DISTECH shares via the accounts belonging to one Chuah Ni whilst in possession of non-public information between 1 March 2010 and 4 March 2010.

The non-public information referred to in all charges relate to the alleged misstatement of DISTECH’s quarterly financial reports between the 3rd Quarter of 2008 and the 4th Quarter of 2009 which had a significant impact on DISTECH’s financial results.

Insider trading is an offence punishable with imprisonment term not exceeding 10 years and a fine of not less than RM1 million.

Cheah claimed trial to the charges. Sessions Court Judge Tuan Hasbullah Adam, who set bail at RM200,000 with one surety, also required Cheah to surrender his international passport to the court.