Sunday, April 14, 2024

SC Emerged Victorious in an Insider Trading Civil Suit Against former CEO Aminuddin of Perak Corporation – Insights Success

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The court has ordered Aminuddin to pay a fine of RM2.46 million along with a civil penalty of RM1 million.

The Securities Commission Malaysia (SC) has successfully concluded an insider trading civil case against Datuk Aminuddin Md Desa, the former CEO of both the Perak State Development Corporation (PKNP) and Perak Corporation Berhad (PCB). High Court Judge Wan Muhammad Amin Wan Yahya has ruled in favor of the SC, stating that the commission has substantiated its claim in the civil suit. Consequently, Aminuddin has been directed to pay the commission RM2.46 million, which is three times the profits accrued from the insider trading violation, as outlined in a statement released by the SC.

Aminuddin is additionally mandated to pay the SC a civil penalty amounting to RM1 million, along with bearing costs totaling RM100,000. The SC stated that Aminuddin violated Section 188(2)(a) of the Capital Markets and Services Act 2007 (CMSA) by acquiring 1.4 million shares of Perak Corporation Berhad (PCB) between October 2013 and January 2014, while being privy to insider information.

“The insider information pertained to PKNP’s proposed privatization of PCB,” noted the regulatory body.

Apart from the penalties, the High Court has also decreed a five-year prohibition on Aminuddin’s appointment as a CEO or director, or involvement in the management of a publicly listed company or its subsidiary.

“In addition,” the SC stated, “he has been prohibited from engaging in any securities trading on Bursa Malaysia for a duration of five years.” The SC initiated a civil action against Aminuddin on Dec 31, 2021, for violations of the insider trading regulations outlined in the CMSA.

Separately, in January 2019, Aminuddin faced criminal charges related to bribery at the Sessions Court in Ipoh. He pleaded not guilty to one count of accepting a bribe under Section 165 of the Penal Code, which carries a penalty of imprisonment for up to two years, a fine, or both.

The allegations against Aminuddin involve the acceptance of a bribe, valued at RM455,660, for the construction of his bungalow from a contractor. This contractor purportedly had dealings with him concerning a contract for infrastructure projects with a subsidiary of the Perak government.

Aminuddin assumed the position of CEO at Perak Corp in February 2013 and later resigned in May 2018, stating a desire to pursue other endeavors.

On Tuesday, shares of Perak Corp concluded trading at 42 sen, marking a six sen increase or a rise of 16.44%. The company’s market capitalization stood at RM41.93 million.

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