KUALA LUMPUR: The Securities Commission has charged Cheah Yew Keat, former managing director of DIS Technology Holdings Bhd (DISTECH), with five counts of insider trading in its shares.
SC said Cheah was alleged to have disposed 2,884,300 units of DISTECH shares via the accounts belonging to one Chuah Ni while in possession of non-public information between March 1, 2010 and March 4, 2010.
The non-public information referred to in all charges relates to the alleged misstatement of DISTECH’s quarterly financial reports between the third quarter of 2008 and the fourth quarter of 2009 which had a significant impact on DISTECH’s financial results, it added.
“All five charges were for insider trading offences under section 188(2)(a) of the Capital Markets and Services Act 2007,” the SC said in a statement.
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 Hasbullah Adam, who set bail at RM200,000 with one surety, required Cheah to surrender his international passport to the court.