SC sues prominent investor for alleged market rigging
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KUALA LUMPUR: The Securities Commission (SC) recently filed a civil suit against Dr Yu Kuan Chon for alleged market rigging and manipulation over his Shangri-La Hotels (M) Bhd trades.
The SC alleged that the prominent investor had traded the hotel’s shares between March 1, 2018, and July 24, 2018, in a manner that caused a surge in the traded volume and share price of the hotel group.
“Yu allegedly traded and transacted in Shangri-La shares using 15 Central Depository System (CDS) accounts during the material period.
“His trades represented approximately 81.9% of the total volume of Shangri-La shares traded on the market during this period,” it said in a statement today.
In its June 24 filing, the SC alleged that Yu had engaged in manipulative activities in the trading of Shangri-La shares, and that Yu’s actions were in breach of Sections 175(1) and/or 176(1) of the Capital Markets and Services Act 2007.
The SC is seeking, among others, a disgorgement of more than RM26.5 million, which is three times the profits alleged to have been made by the defendant as a result of the breach.
The commission is also claiming a civil penalty of RM1 million and an order to bar the defendant from being appointed as a chief executive or director in any public listed company or its subsidiaries for a period of five years.
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