Former Patimas Deputy Chairman Loses Insider Trading Appeal

The Court of Appeal decided today in the case involving a former deputy chairman of Patimas Computers Berhad and insider trading. The ruling favored the Securities Commission, finding Dato’ Raymond Yap Wee Hin accountable for the illegal practice.

Back in 2022, the High Court had already found Yap guilty of insider trading, and today his appeal was dismissed by the court. The judgment from the High Court was upheld, mandating Yap to pay RM3.28 million in disgorgement to the SC. This payment amounts to three times the losses that Yap avoided through insider trading.

Yap’s breach took place when he sold off 43.8 million Patimas shares owned by Law Siew Ngoh, the former Managing Director of Patimas, between June and July of 2012. During this period, Yap possessed crucial non-public information regarding audit queries and concerning transactions between Patimas and its major debtors.

These concerns had been brought up by Ernst & Young Malaysia, Patimas’ external auditor, during a meeting with the company’s management. On July 31, 2012, Patimas informed Bursa Malaysia that they were unable to release the Annual Audited Financial Statements for the financial period from January 1, 2011, to March 31, 2012, due to unresolved significant audit queries.