KUALA LUMPUR: The Securities Commission (SC) recently filed a civil suit against Datuk Dr Yu Kuan Chon for market rigging and manipulation breaches involving shares in Shangri-La Hotels (M) Bhd (Shang).
The SC alleged that Yu had traded the hotel’s shares between March 1, 2018, and July 24, 2018, in a manner that caused a surge in the traded volume and share price of Shang.
“Yu allegedly traded and transacted in Shang shares using 15 Central Depository System (CDS) accounts during the material period.
“His trades represented approximately 81.9 per cent of the total volume of Shang shares traded on the market during this period,” it said in a statement yesterday.
In the claim filed on June 24, the SC alleged that Yu had engaged in manipulative activities in the trading of Shang shares, and that Yu’s trading activities were in breach of Sections 175(1) and/or 176(1) of the Capital Markets and Services Act 2007.
Thus, the SC is seeking, among others, a disgorgement of RM26,572,397.70, which is three times the profits alleged to have been made by the defendant as a result of the breach.
The commission is also claiming a civil penalty of RM1 million and an order to bar the defendant from being appointed as a chief executive or director in any public listed company or its subsidiaries for a period of five years. – BERNAMA
