Securities Commission Malaysia (SC) obtained a Court of Appeal ruling affirming the High Court’s judgment that Dato’ Ng Back Heang, a former Executive Director of Patimas Computers Berhad, was liable for insider trading under section 188(2)(a) of the Capital Markets and Services Act 2007. The Court of Appeal unanimously dismissed Ng’s appeal with costs of RM30,000 and upheld the High Court order requiring him to pay RM1.24 million in disgorgement to the SC, stated to be three times the losses avoided. The High Court had also imposed a civil penalty of RM700,000, barred Ng from being appointed as a director of any public listed company for five years starting from 17 November 2022, and awarded the SC RM100,000 in costs. The breach related to Ng’s disposal of 16.5 million Patimas shares between May and July 2012 while in possession of material non-public information concerning audit queries and issues about suspicious transactions between Patimas and its top debtors, ahead of the company’s 31 July 2012 announcement that it could not issue its annual audited financial statements due to unresolved significant audit findings and queries.
Malaysia Securities Commission 2025-09-02
Securities Commission Malaysia secures Court of Appeal affirmation of insider trading judgment and RM1.24 million disgorgement against former Patimas executive
The Securities Commission Malaysia secured a Court of Appeal ruling affirming the High Court’s decision that Dato’ Ng Back Heang engaged in insider trading under the Capital Markets and Services Act 2007. Ng's appeal was dismissed, requiring him to pay RM1.24 million in disgorgement, a RM700,000 civil penalty, and barring him from directorships in public companies for five years. The case involved Ng's sale of 16.5 million Patimas shares while possessing non-public information about audit issues.