Malaysia’s securities regulator is taking seven individuals to court on charges that they manipulated the price of DVM Technology shares.
The Securities Commission alleges that the defendants traded in DVM Technology shares among themselves between March 14 and 21, 2006, causing the share price to rise from RM0.11 ($0.035) to RM0.32 on March 20.
Sixty-three million shares were traded on March 20, compared to 3.6 million the week before. The defendants’ actions created a false or misleading appearance of active trading and artificially increased the stock price, the SC said. Before the week in question, the defendants had never bought or sold DVM Technology shares, it added.
The seven individuals named in the action are Kenneth Vun, Teng Choo Teik, Simon Lin Siang Hock, Lye Pei Ling, Chuah Hock Soon, Choong Lay Ti and Gui Boon Huat.
The SC is seeking a disgorgement of the profits earned by the defendants as a result of the manipulation and a civil penalty of RM1 million ($315,000) from each individual. It has also asked the court to bar the defendants from being directors of publicly listed companies for five years.
“Manipulation threatens market integrity and this continues to be a key focus area at the Securities Commission,” said Ahmad Fairuz bin Zainol Abidin, the executive director of enforcement at the regulator.