KUALA LUMPUR — The Kuala Lumpur High Court has ruled that the Securities Commission Malaysia (SC) successfully proved its case against five individuals over a scheme to defraud and cause wrongful losses to four public-listed companies, involving a total of RM103.75 million in payments and penalties.
The five are Tey Por Yee, Lim Chye Guan, See Poh Yee, Francis Tan Hock Leong and Faizatul Ikmi Abdul Razak.
The SC said the court on Aug 19, 2026 found that the defendants had contravened, among others, Sections 179(a), 179(b), 317A and 370 of the Capital Markets and Services Act 2007 (CMSA).
The four affected companies were Nexgram Holdings Bhd, R&A Telecommunication Group Bhd, Asdion Bhd and Ire-Tex Corporation Bhd.
The SC had filed a civil suit against the defendants on Nov 29, 2022, alleging that they had perpetrated a scheme to defraud and/or caused wrongful losses amounting to RM120.6 million to the four companies.
The SC said its claim was that between December 2013 and July 2014, Tey, Lim, See and Francis Tan, in their respective capacities as directors and officers of the companies, siphoned out proceeds from fundraising exercises, while Faizatul abetted or furthered the siphoning.
In delivering the decision yesterday, High Court Judge Datuk Indera Mohd Arief Emran Arifin found that there was evidence that the defendants took control of the four companies and procured fundraising exercises, after which the proceeds were siphoned out.
The court ordered the defendants to pay RM100.6 million to the SC pursuant to Section 360 of the CMSA, in addition to civil penalties totalling RM2.65 million.
Tey was ordered to pay RM1 million, Lim RM600,000, while See, Francis Tan and Faizatul were each ordered to pay RM350,000.
The defendants were also barred from being directors of, or being concerned or taking part directly or indirectly in the management of, any public-listed company for 10 years from the date of judgment.
They were further ordered to pay total costs of RM500,000 to the SC.
The court also restrained the defendants from dealing with their assets until the sums due had been paid in full.
The trial was held from Oct 8, 2025 to April 29, 2026, with the SC calling 33 witnesses to prove its case. The defendants gave evidence on their own behalf, except Francis Tan, who had been declared bankrupt and did not appear in the proceedings.
Previously, the SC had obtained a High Court injunction in 2022 restraining Tey, Lim, See and Faizatul from dealing with monies in their respective bank accounts pending the trial.
Tey, Lim, See and Faizatul appealed against the injunction, but the Court of Appeal upheld the High Court’s decision on Aug 21, 2024.
The SC said the High Court decision reinforced the accountability of directors and officers entrusted with managing public-listed companies, and that misconduct involving the abuse of corporate structures, misappropriation of fundraising proceeds and conduct causing wrongful losses to listed corporations would not be tolerated.
