A co-founder and former director of construction engineering and property development company WCT Bhd has been fined RM3.73 million for insider trading.
Securities Commission Malaysia (SC) said in a statement that it had won a case against Chan Soon Huat, who founded WCT in 1981 with three other men – Wong Chew Lai, Wong Sewe Wing and Peter Taing.
In 2015, the SC claimed that Chan had breached the Capital Markets & Services Act 2007 when he disposed a total of 2,414,600 shares and 1,236,700 warrants in WCT between Dec 30, 2008 and Jan 5, 2009 while in possession of material non-public information.
According to The Edge, Chan was alleged to have sold the shares just before the public announcement of the cancellation of a construction contract in Dubai.
The total fine of RM3,238,760.55 is three times the losses Chan had avoided as a result of the insider trading, SC said.
In addition, the High Court ordered Chan to pay a civil penalty of RM500,000 to the SC.