SC wins insider trading civil suit against Perak Corp ex-CEO Aminuddin; court orders RM2.46m fine plus RM1m civil penalty

SC wins insider trading civil suit against Perak Corp ex-CEO Aminuddin; court orders RM2.46m fine plus RM1m civil penalty

KUALA LUMPUR (Feb 13): The Securities Commission Malaysia (SC) has won an insider trading civil suit against Datuk Aminuddin Bin Md Desa, the former chief executive officer (CEO) of the Perak State Development Corporation (PKNP) and Perak Corp Bhd (PCB).

High Court judge Wan Muhammad Amin Wan Yahya has ruled that the SC had proven its claim in the civil suit and ordered Aminuddin to pay the commission RM2.46 million, which is three times the profits gained as a result of the insider trading breach, according to a statement issued by the SC.

Aminuddin is also required to pay the SC a civil penalty of RM1 million and costs of RM100,000.

The SC said Aminuddin had breached Section 188(2)(a) of the Capital Markets and Services Act 2007 (CMSA) by acquiring 1.4 million PCB shares between October 2013 and January 2014, while in possession of inside information.

“The inside information was on PKNP’s proposed privatisation of PCB,” the regulator said.

Besides the penalty, the High Court also ordered Aminuddin to be barred from being appointed as a CEO or director, or being involved in the management of a public-listed company or its subsidiary for five years.

“He was also barred from trading in any securities on Bursa Malaysia for five years,” the SC added.

On Dec 31, 2021, the SC filed a civil action against Aminuddin for breaches of the insider trading provisions under the CMSA.

Separately,  Aminuddin was criminally charged with bribery at the Sessions Court in Ipoh in January 2019. He claimed trial to one count of accepting a bribe under Section 165 of the Penal Code, which provides for imprisonment of up to two years, or a fine, or both.

Aminuddin was alleged to have accepted a bribe in the form of payment for the construction of his bungalow, amounting to RM455,660, from a contractor. The contractor is alleged to have dealings with him in regard to a contract for infrastructure works involving a Perak government subsidiary.

Aminuddin was appointed as the CEO of Perak Corp in February 2013 and resigned in May 2018 “to pursue other interests”.

Shares of Perak Corp closed six sen or 16.44% higher at 42 sen on Tuesday, with a market capitalisation of RM41.93 million.