DIS Technology former MD charged with insider trading

PETALING JAYA: The Securities Commission (SC) today charged DIS Technology Holdings Bhd (DISTECH) former managing director Cheah Yew Keat with five counts of insider trading in the company’s shares.

The regulator said in a statement that Cheah was alleged to have disposed of 2.88 million DISTECH shares via the accounts belonging to one Chuah Ni whilst in possession of non-public information between March 1, 2010 and March 4, 2010.

“The non-public information referred to in all charges relate to the alleged misstatement of DISTECH’s quarterly financial reports between Q3 of 2008 and Q4 of 2009 which had a significant impact on DISTECH’s financial results.”

DISTECH was delisted on August 19, 2010.

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.

All five charges were for insider trading offences under section 188(2)(a) of the Capital Markets and Services Act 2007.

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

Source: The Sun Daily

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