The Securities Commission said the Kuala Lumpur Sessions Court yesterday convicted and sentenced former investment banker, Lim Bun Hwa, for insider trading in the shares of PacificMas Bhd (PacificMas).
The 42-year-old was sentenced to six months jail and fined RM 1 million after he pleaded guilty to five charges of insider trading under section 188(2)(a) of the Capital Markets and Services Act 2007.
According to the charges, Bun Hwa had acquired 145,000 units of PacificMas shares while in possession of inside information between Dec 18 and Dec 31, 2007.
At the material time, Bun Hwa was a senior manager in the Corporate Finance Department of CIMB Investment Bank Bhd (CIMB).
The inside information referred to in the charges related to the proposed take-over offer of PacificMas by Overseas Chinese Banking Corporation (OCBC), which was announced to Bursa Malaysia on Jan 4, 2008.
CIMB had been engaged by OCBC to advise it on the proposed take-over. In 2017, Bun Hwa was charged together with Ewe Lay Peng, also a Senior Manager in the Corporate Finance Department in CIMB, as well as Bun Hwa’s brother Lim Boon Cheng, with respect to the insider trading activities in this case.
Following the plea of guilt by Bun Hwa, the charges against Boon Cheng were withdrawn. The court has fixed Oct 11, 2018, for trial dates to be fixed in the case involving Ewe.