THE Securities Commission has won a civil suit against a former executive director of Patimas Computers Bhd Ng Back Heang for insider trading.

The case was heard by judicial commissioner Muhammad Amin Wan Yahya, who found that Ng had breached section 188(2)(a) of the Capital Markets and Services Act 2007.

In a statement, SC said Ng, 68, was ordered to pay the SC a sum of RM1.24 million, three times the losses he avoided as a result of insider trading

“He was also ordered to pay a civil penalty of RM700,000 to the SC and barred from being appointed as a director of a publicly listed company for five years, beginning today.

“The High Court also granted the SC RM100,000 in costs,” it said.

The breach occurred in 2012, when Ng disposed of 16.5 million Patimas shares he owned while in possession of material non-public information.

“The said information was in relation to audit queries and issues about suspicious transactions between Patimas and its top debtors.

“Insider trading continues to be a high priority for the SC. The judgment sends a strong and clear message to the public that insider trading where inside information is misused for personal gain will not be tolerated by the SC,” it said.

This is the second successful claim by the SC against a former director of Patimas for insider trading.

In April this year, the High Court ordered the company’s former deputy chairman Raymond Yap Wee Hin to the SC RM3.28 million, which was three times the loss avoided by him as a result of insider trading activities, as well as a civil penalty of RM1 million. – Bernama, November 17, 2022.