Former Patimas Deputy Chairman Fails to Overturn Insider Trading Conviction

The Court of Appeal has made a decision in a case involving a former deputy chairman of Patimas Computers Berhad, ruling against him in an insider trading matter.

Back in 2022, Dato’ Raymond Yap Wee Hin was found responsible for insider trading by the High Court. Now, after an appeal, the Court of Appeal has upheld the previous judgment, ordering Yap to pay RM3.28 million to the Securities Commission. This sum is three times the amount Yap gained through insider trading.

The incident occurred when Yap sold 43.8 million shares of Patimas that belonged to Law Siew Ngoh, a former Managing Director of the company. This sale took place between June and July of 2012. At that time, Yap possessed confidential information about audit queries and concerning transactions between Patimas and its major debtors—all of which had been discussed during a meeting with Ernst & Young Malaysia, Patimas’ external auditor.

Ultimately, on July 31, 2012, Patimas disclosed to Bursa Malaysia that they would be unable to issue their Annual Audited Financial Statements for the financial period ranging from January 1, 2011, to March 31, 2012, due to unresolved audit issues.

Insider trading is a serious violation of securities laws, and the court’s decision serves as a reminder of the consequences that can follow such actions. It’s crucial for individuals in positions of power to uphold ethical standards and respect the rules and regulations that govern financial markets to maintain a fair and transparent system for all investors.