Malaysia Securities Commission case results in concurrent prison terms totalling 20 years and MYR 9 million fine for unlicensed derivatives fraud

The Malaysia Securities Commission reported that the Kuala Lumpur Sessions Court sentenced Mohd Azhidi bin Laili for unlicensed activities and derivatives fraud, imposing prison terms totalling 20 years and a MYR 9 million fine after he pleaded guilty. The offences were committed between May 2013 and March 2014, when Azhidi falsely represented himself as a futures trader and deceived nine victims of MYR 1.45 million through a purported futures crude palm oil investment scheme under AmFutures Sdn Bhd, which did not exist. He received two years’ imprisonment and a MYR 1 million fine on each of nine charges under section 206(b) of the Capital Markets and Services Act 2007, with custodial terms to run concurrently and default imprisonment of 27 months if the fines are not paid. A further two years’ imprisonment was imposed (also concurrent) for holding himself out as a representative without being licensed or registered to deal in derivatives, contrary to section 59(1). The SC charged him in February 2022 and he was initially granted MYR 250,000 bail, which was revoked on 21 May 2024 after he failed to attend court and comply with reporting requirements, with the imprisonment term ordered to commence from the bail revocation date; the SC also reminded the public to verify investment offers using its Investment Checker.