SC takes seven individuals to court over DVM share trades

PETALING JAYA: The Securities Commission Malaysia (SC) is taking enforcement action against seven individuals for the manipulation of DVM Technology Bhd shares at the Kuala Lumpur High Court.
In a statement yesterday, the SC said the seven individuals are Kenneth Vun @ Vun Yun Liun, Teng Choo Teik, Simon Lin Siang Hock, Lye Pei Ling, Chuah Hock Soon, Choong Lay Ti and Gui Boon Huat.
This is the second time SC is instituting an action against Vun. In November 2009, the SC obtained an order from the High Court requiring Kenneth Vun to make a restitution of RM2.49 million to FTEC Resources Bhd (FRB) for using a portion of FRB's public issue proceeds for his own benefit.
In the action taken, the SC alleges that the defendants had, over the period of a week from March 14, 2006 to March 21, 2006, actively transacted in DVM shares among themselves, causing the price of the shares to artificially rise from 11 sen on March 14, 2006 to a high of 32 sen on March 20, 2006.
The SC alleges that the defendants' actions had created a false or misleading appearance of active trading in DVM shares as well as the price of the shares.
It alleges that the week-long manipulation resulted in a surge in the volume of DVM shares, to a total of 63 million shares on March 20, 2006, compared to 3.6 million shares one week prior to the manipulation.
The SC's investigations revealed that the defendants never traded in DVM shares prior to the material period.
The regulator is seeking a disgorgement of all profits earned by the defendants as a result of the manipulation, which is sought to be used to compensate affected investors and also claiming a civil penalty of RM1 million from each of the seven defendants.
"Other orders sought are that the defendants be barred from being a director of a public listed company and from trading on the stock exchange for a period of five years," it said.
"Manipulation threatens market integrity and this continues to be a key focus area at the SC," said the SC's executive director of enforcement, Ahmad Fairuz Zainol Abidin.
He stated that this case reflects the regulator's commitment in addressing market manipulation and reiterated that it is serious in its efforts to bring offenders to book.