KUALA LUMPUR, Oct 10 -- A former managing director of DIS Technology Holdings Berhad (DIST) was charged in the Sessions Court here today with five counts of disposing of 2.8 million units of the company shares with inside information nine years ago.
Cheah Yew Keat, 62, however, pleaded not guilty after all the charges were read out to him before judge Hasbullah Adam.
On all the charges, he was alleged to have disposed 2.8 million units of DIST shares in a Central Depository System account belonging to one Chuah Ni with inside information.
The information was regarding the company’s unaudited financial statements for the third quarter of 2008 to the fourth quarter of 2009 , which would have a material effect on the price or the value of securities following an alleged fraud reported by DIST’s key customer, Starlight Marketing Limited.
Cheah was alleged to have committed the offences at Bursa Malaysia Securities Berhad, Exchange Square, Bukit Kewangan here, from March 1 to 4, 2010.
He was charged under Section 188 (2) (a) of the Capital Markets and Services Act 2007, and faced an imprisonment of up to 10 years imprisonment and a fine of not less than RM1 million, upon conviction.
Deputy public prosecutor from the Securities Commission Zulaida Zulkifli requested bail at RM300,000 for all charges, but lawyer S. Subramaniam, representing Cheah, in seeking for a lower bail, said his client is a person with disability, having suffered polio since the age of three, and is now a bankrupt.
The court then allowed Cheah bail of RM200,000 in one Malaysian surety for all charges and also ordered him to surrender his passport.
The court then set Dec 3 for mention.