KUALA LUMPUR: The Kuala Lumpur High Court affirmed the conviction of businessman Phazaluddin Abu, 49, for acting as a fund manager without a licence through the website www.danafutures.com.
The Securities Commission said on Thursday, May 5 the judge, Datuk Ghazali Cha, affirmed Phazaluddin's conviction under section 15A of the Securities Industry Act 1983 (SIA).
His sentences of four years imprisonment under the SIA, and two years imprisonment for each of the three convictions under the Anti Money Laundering and Anti Terrorism Financing Act 2001 (AMLATFA), were also upheld.
The High Court acknowledged that over 52,000 investors had invested in the unlicensed scam which resulted in a collection of over RM65 million.
A whole unit in the Securities Commission was established to investigate internet based fraudulent schemes such as this including forensic expertise and a lot of public expense was incurred.
In dismissing Phazaluddin's appeal against the Sessions Court's decision, the judge also upheld the convictions under the Anti Money Laundering and Anti Terrorism Financing Act 2001 (AMLATFA) for dealing with the moneys collected via the unlicensed scam.
The High Court maintained the findings that Phazaluddin was the mastermind behind the website and that he had collected the moneys.
The SC said 29 witnesses were called through the three year trial, which resulted in the first conviction in the country for an illegal online investment operation.
Phazaluddin was directed to serve his imprisonment sentence immediately as his request for a stay of execution pending appeal was dismissed. The High Court agreed that deterrent punishment on this type of securities laws breaches was essential.
The Securities Commission said on Thursday, May 5 the judge, Datuk Ghazali Cha, affirmed Phazaluddin's conviction under section 15A of the Securities Industry Act 1983 (SIA).
His sentences of four years imprisonment under the SIA, and two years imprisonment for each of the three convictions under the Anti Money Laundering and Anti Terrorism Financing Act 2001 (AMLATFA), were also upheld.
The High Court acknowledged that over 52,000 investors had invested in the unlicensed scam which resulted in a collection of over RM65 million.
A whole unit in the Securities Commission was established to investigate internet based fraudulent schemes such as this including forensic expertise and a lot of public expense was incurred.
In dismissing Phazaluddin's appeal against the Sessions Court's decision, the judge also upheld the convictions under the Anti Money Laundering and Anti Terrorism Financing Act 2001 (AMLATFA) for dealing with the moneys collected via the unlicensed scam.
The High Court maintained the findings that Phazaluddin was the mastermind behind the website and that he had collected the moneys.
The SC said 29 witnesses were called through the three year trial, which resulted in the first conviction in the country for an illegal online investment operation.
Phazaluddin was directed to serve his imprisonment sentence immediately as his request for a stay of execution pending appeal was dismissed. The High Court agreed that deterrent punishment on this type of securities laws breaches was essential.
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