KUALA LUMPUR (Dec 12): A businessman was sentenced to one day in jail and fined RM400,000 by the Sessions Court here on Monday (Dec 12) for allowing his friend to dispose of more than 14 million shares in a local furniture manufacturer in his central depository system (CDS) account 18 years ago.

Judge Azman Ahmad handed down the sentence on Siow Chung Peng, 52,  after he changed his plea to guilty to an alternative charge during the defence trial, which began in 2020.

Siow was ordered to serve the prison sentence on Monday. He paid the fine.

When handing down the sentence,  Azman said three judges had heard the case in the trial, which lasted more than 10 years, and all evidence presented in the court had been returned to the prosecution.

"I am grateful to the prosecution and the defence for managing to resolve this case satisfactorily, and create a win-win situation for all parties. I hope that this kind of case will not happen again," said the judge.

According to the charge, Siow, as the beneficial owner of the CDS account at OSK Securities Bhd, allegedly allowed Goh Hock Choy, 60, who was not an authorised nominee for the account, to dispose of 14,683,200 units of Lii Hen Industries Bhd in the account.

In doing so, Siow breached Section 29A of the Securities Industries (Central Depositories) Act 1991, which states that all dealings in respect of deposited securities shall only be effected by the beneficial owners of such deposited securities or an authorised nominee.

He was charged with committing the offence, which is punishable under Section 51 of the same Act, at Bursa Malaysia Sekuriti Bhd, 14th Floor, Exchange Square, Bukit Kewangan here between July 2, 2004, and Nov 2, 2004.

The law provides a maximum fine of RM1 million or jail up to five years, or both, if found guilty.

Deputy public prosecutor from the Securities Commission Malaysia (SC), Izuddin Mohamad, told the court that both parties had reached an agreement on the charges and sentence under Section 172C of the Code of Criminal Procedure, after the accused sent a representation to the SC.

“Accordingly, the prosecution has prepared a document on the disposal of the case that contains the terms that have been agreed upon by both parties," he added.

Lawyer Amer Hamzah Arshad, who represented Siow, confirmed the matter.