Securities Commission Malaysia: High Court Upholds Conviction Of Former Repco Holdings Bhd Chairman Over Market Manipulation Case Repco Low’s Fine Of RM5 Million Affirmed, Sentence Of Five Years Imprisonment Reduced To 1 Year

The Kuala Lumpur High Court today dismissed the appeal by Low Thiam Hock (Low), also known as “Repco Low” against his conviction for the manipulation of Repco Holdings Bhd (“Repco”) shares that occurred in 1997. 

The High Court however reduced the sentence of imprisonment from five years to one year and maintained the fine of RM5 million handed down by the Sessions Court in 2016. An offence under section 84(1) of the SIA carries a minimum fine of RM1 million and a maximum jail term of up to 10 years. 

Following the judgment, the High Court further granted a stay of execution of the sentence pending the disposal of Low’s appeal to the Court of Appeal. In dismissing the appeal today, the High Court Judge Dato’ Azhar Abdul Hamid stated that the court agreed with the prosecution that the conviction is safe. 

Following a full trial spanning close to 17 years, Low was convicted in 2016 by the Sessions Court for an offence under section 84(1) of the Securities Industries Act 1983 (“SIA”).  He was charged with manipulating the price of Repco shares by engaging in acts to create a misleading appearance with respect to the price of Repco shares listed on the Kuala Lumpur Stock Exchange (now known as Bursa Malaysia) on 3 December 1997.

After reaching an all-time high of RM140.50 per share in September 1997, the share price of Repco plummeted to RM2.98 less than a year later. The stock was suspended from trading on Bursa Malaysia in October 2000, and delisted three years later. 

Background – Case background

1. 18 September 1999 : SC first charged Low in the Sessions Court. At the end of the prosecution’s case during which 25 witnesses were called, Low was acquitted on the basis that the charge was not proven. The SC then appealed to the High Court which upheld the Sessions Court’s decision.  
2. 28 February 2013 : Court of Appeal overturned decision of the High Court and ordered Low to enter his defence on the charge against him, remitting the case back to the Sessions Court. The Sessions Court then proceeded to hear the defence case, whereby Low elected to testify under oath and called seven other witnesses in support of his defence. 
3. 11 January 2016  : Sessions Court judge Mat Ghani Abdullah found that Low had failed to raise a reasonable doubt on the prosecution’s case, and that his defence only amounted to a bare denial and an afterthought. See SC’s media release on this here. 
4. 29 February 2016 : During sentencing, the Sessions Court imposed a sentence of five years imprisonment and a fine of RM5 million against Low. He was given a stay of both the imprisonment and fine sentence pending his appeal to the High Court. See SC’s media release on this here.