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KUALA LUMPUR: The High Court today ordered a senior attorney to pay the Securities Commission (SC) about RM3 million as an insider trading penalty.
The SC said Sreesanthan Eliathamby would pay them a total of RM 2,989,402 according to the court ruling.
“RM 1,989,402 of the total equates to three times the profit made by Sreesanthan as a result of its illegal activities,” SC said in a statement.
Judge Azizul Azmi Adnan ordered Sreesanthan, 60, to pay an additional RM1 million to the SC as a civil penalty.
He also banned Sreesanthan from being a director of any publicly traded company for a period of 10 years from November 18.
The SC also received costs of RM100,000.
Azmi said it discovered that SC had successfully proven its claim in a civil lawsuit against Sreesanthan for violating Section 89E (2) (a) of the Securities Industry Act of 1983 when it acquired 600,000 shares of Worldwide Holdings Berhad (Worldwide) in 2006 while in possession of important non-public information.
This classified information is related to a worldwide privatization proposal carried out by Perbadanan Kemajuan Negeri Selangor (PKNS) through a member’s agreement plan.
The proposed privatization of Worldwide was subsequently announced to Bursa Malaysia on August 23, 2006.
Sreesanthan, who was a senior partner in a law firm, had acted as legal advisor for the proposed privatization of Worldwide.
