Securities Commission Malaysia Prosecutes Datuk Ishak Ismail Over Kenmark’s Case

The Securities Commission Malaysia (SC) today charged Datuk Ishak Ismail for making misleading statements on 5 June 2010 which was likely to induce the purchase of Kenmark shares by other persons. The charge under section 177(b) of the Capital Markets and Services Act 2007 relates to a statement which was published in ‘The Star’ newspaper dated 5 June 2010.

Just prior to making the alleged misleading statement, Datuk Ishak had became a major shareholder of Kenmark, holding 57,691,900 of Kenmark shares.

Datuk Ishak also faces two counts of insider trading charges when he sold 58,691,900 units of Kenmark shares on 9 and 11 June 2010. At the time of the said disposal, he is alleged to have been in possession of material non-public information that two of Kenmark’s clients had been declared bankrupt and that EON Bank Berhad had refused to uplift the receivership on Kenmark. Earlier in 2010, SC had successfully obtained an injunction from the Kuala Lumpur High Court to freeze RM4.8 million of the proceeds of the impugned trades by Datuk Ishak.

Datuk Ishak claimed trial to all three charges. Sessions Court Judge Tuan Mat Ghani Abdullah imposed a bail of RM600,000 and one surety pending trial in November 2016.