Court acquits lawyer over insider trading

 

Court rules that the alleged inside information was in the public domain when the accused purchased the shares.

KUALA LUMPUR: The Sessions Court here today acquitted a lawyer without calling for his defence over three counts of insider trading alleged to have been committed 15 years ago.

Judge Zamri Bakar said the prosecution failed to establish a prima facie case against Sreesanthan Eliathamby, 60.

Zambri said he concurred with the defence that the alleged inside information was in the public domain.

The judge said several reputable journals and commentaries on the proposed acquisition or merger of the Sime Darby, Kumpulan Guthrie and Golden Hope groups of companies was published before the accused acquired Sime Darby Bhd shares.

The judge said the offence of insider trading was not a strict liability offence and that mens rea (criminal intent) must be proved by the prosecution.

In 2012, he was charged with acquiring a total of 75,000 Sime Darby Bhd shares while allegedly in possession of inside information of the proposed acquisition of several companies, including Sime Darby, by a special purpose vehicle.

Lawyers Gurdial Singh Nijar, Jerald Gomez, Michelle Wong and Joshua Andran appeared for Sreesanthan.

Deputy public prosecutor Hasley Tajudin, prosecuting officers Nurul Rafeza Hamdan and Munira Masood appeared for the Securities Commission. - FMT