Thursday, September 22, 2011

Two ex-directors of Multicode Electronics jailed, fined

KUALA LUMPUR: Two former directors of Multicode Electronics Industries (M) Bhd were jailed after they were found guilty of committing criminal breach of trust (CBT) involving over RM26 million of funds belonging to the company.

The Securities Commission said on Thursday, Sept 22, the Kuala Lumpur Sessions Court found Gordon Toh Chun Toh, a Singaporean, and Datuk Abul Hassan Mohamed Rashid guilty of CBT under section 409 of the Penal Code.

Toh was sentenced to 12 years imprisonment and Abul Hassan received a jail sentence of six years. Toh was also ordered to pay a fine of RM1 million, in default two years imprisonment.

Judge Datuk Jagjit Singh said 'A pre-meditated white collar scandal executed with precision within T+3 is how I would sum up the whole case'.

He stressed that the sentences imposed on the two must send a strong message to offenders and would-be offenders that crime does not pay.

Jagjit Singh also pointed out that the victim, Multicode, is a public listed company which lost millions as a result, causing its public shareholders to suffer as well.

He said that for the business and commercial sector to flourish, the corporate environment must be free of white collar crimes.

To recap, Toh and Abul Hassan were charged in the Sessions Court in Kuala Lumpur in March 2009 with having engaged in an act which operated as a fraud on Multicode by causing the uplifting of fixed deposits belonging to Multicode under section 87A of the Securities Industry Act 1983.

An alternative charge of CBT was preferred at the same time under section 409 of the Penal Code.

The prosecution called a total of 31 witnesses over the period of the trial.

No comments:

Post a Comment