Former DIS Technology managing director fined, jailed for insider trading

PETALING JAYA: The Kuala Lumpur Sessions Court today convicted and sentenced former DIS Technology Bhd (Distech) managing director Cheah Yew Keat, for insider trading, an offence under section 188(2)(a) of the Capital Markets and Services Act 2007 (CMSA).

Sessions Court Judge Hasbullah Adam sentenced Cheah, 63, to one-day jail and a fine of RM1 million (in default of 12 months imprisonment) after he pleaded guilty to one charge of insider trading.

“His admission to the other four charges were also taken into account for sentencing, through a plea bargain application under section 172C of the Criminal Procedure Code,” the Securities Commission said in a statement.

The regulator had charged Cheah on Oct 10, 2019 or disposing 2,884,300 units of Distech shares between March 1, 2010 and March 4, 2010, via accounts belonging to his personal assistant’s husband, Chuah Ni.

This occurred whilst Cheah was in possession of material price sensitive information which was not generally available, namely, the alleged misstatement of Distech’s quarterly financial reports between third quarter of 2008 and fourth quarter of 2009, which would significantly impact Distech’s financial results.