SC wins insider trading case against WCT Bhd co-founder/former director

PETALING JAYA: The High Court today declared that the Securities Commission Malaysia (SC) had successfully proven an insider trading case against WCT Bhd co-founder and former director Chan Soon Huat.

In the suit that was filed in 2015, the SC claimed that Chan had breached Section 188(2)(a) of the Capital Markets & Services Act 2007 when he disposed of a total of 2.41 million shares and 1.24 million warrants in WCT between Dec 30, 2008 and Jan 5, 2009 while in possession of material non-public information.

Justice Datuk Abu Bakar Jais ordered Chan to pay a sum totalling RM3.24 million, three times the losses avoided by Chan as a result of the insider trading.Chan was also ordered to pay a civil penalty of RM500,000 to the SC.

The SC alleged that the material non-public information referred to in the action related to the cancellation of a contract for the proposed construction of the “Nad Al Sheba Dubai Racecourse” in Dubai, the United Arab Emirates, which was awarded to a joint-venture company set up by WCT and one Arabtec Construction LLC. The announcement was made on Jan 6, 2009.

Chan was said to have disposed of the WCT shares and warrants through his own account and also the account of his daughter, Chan Choon Chew and his son-in-law, Leong Weng Wah.