Thursday, June 24, 2010

SC charges ex-LFE director with fraud

KUALA LUMPUR: The Securities Commission has charged a former LFE Corporation Berhad (LFE) director Alan Rajendram a/l Jeya Rajendram with securities fraud and eight other offences he allegedly committed when he was the director of the company.

The charges against the 53-year-old Alan are the latest in a string of enforcement action by the SC against alleged corporate fraud and misconduct.

Alan, 53, was charged under section 87A(b) Securities Industry Act 1983 for committing an act that operated as a fraud on LFE by using RM9 million of LFE's monies to finance the purchases of LFE shares pursuant to a private placement and restricted offer of LFE shares to him.

The alleged act is said to have been committed between Jan 4, 2007 and Feb 8, 2007. If convicted, he is liable to a fine of not less than RM1 million and imprisonment for a term not exceeding 10 years.

He pleaded not guilty.

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