Dear SC,

https://www.sc.com.my/api/documentms/download.ashx?id=e1c7eb21-53db-4f02-a8f8-55dc09f9ffff

I am impressed with SC achievement in year 2020 in the field on fraud investigation and action taken against the fraudsters and external auditors.

The Securities Commission Malaysia (SC) reviewed 67 possible capital market breaches last year, following active surveillance of market and corporate activities, supervision and complaints.

More than half of these breaches were attributed to securities fraud, market manipulation, disclosure related and the SC Guidelines breaches.

 

In its 2020 annual report released today, the SC noted that as of Dec 31, 2020, there were 38 active investigations

The regulator searched five premises to gather relevant information and documents and recorded formal witness statements from 142 individuals comprising investors/securities accountholders, licensed persons and professionals.

The SC made 18 requests for investigative assistance to eight foreign supervisory authorities. It also rendered assistance to four foreign assistance supervisory authorities in relation to five requests for investigation assistance.

Last year, 45 administrative sanctions were imposed for various misconducts and breaches of securities laws including issuance of an abridged prospectus containing information from which there is a material omission, breaches of licensing conditions, breach of take-overs and mergers provisions and for late submission of documents under the LOLA Framework.

A total of RM1.29 million in penalties was also imposed.

 

Criminal action

In 2020, the SC managed to secure convictions against five individuals involved in various breaches of securities laws such as securities fraud, false financial disclosure, insider trading and failure to appear before an investigation officer for a money laundering investigation. The sentence imposed through these convictions included a jail period of up to six months and total fines of RM5.88 million.

A total of RM1.2 million was also collected by the SC through payment of compounds

 

Six enforcement actions taken by AOB against auditors, audit firms in 2020

Of the six actions, three involved monetary penalties, two involved prohibition from accepting and auditing public interest entities and schedule funds for a period of time together with a monetary penalty imposed, and one involved prohibition from acting as an engagement quality control reviewer.

A total of RM407,000 in penalties were imposed on two audit firms, one of which was a recognised audit firm, and three individual auditors in their capacity as engagement partners in the audits of public-interest entities

 

I would like to bring the attention of SC to my long complaint case on Xingquan: [Case: SC2019-3819], [Case: SC2019-5725], [Case: SC2020-12313] (Bursa Ref: CC/43/19)

First and foremost, I would like to express my gratitude and thanks to Bursa for enforcement actions against XINGQUAN and its directors for various breaches of the Listing Requirements (LR) as set out in the media release dated 29 March 2019 and also delisted Xigquan from Bursa.

https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=2940952

 

Please pardon me to ask SC again

Question 1: In view of the seriousness of offends/frauds committed by the fraudsters and their total disregard/contempt shown against authorities of SC and BURSA with no respect for Malaysia Law. Has SC made an extradition request with the Chinese government to extradite CEO Dato’ Wu and his brother executive director Wu Lianfu to stand trial in Malaysia Court?

 

Question 2: Refer google search: https://www.google.com/search?client=firefox-b-d&q=gertop

Xingquan brand products (Gertop) are available for sale at many online shopping websites. This means Xingquan still has production lines and assets in China but the China owner and Management team just took us Malaysians as fools and showed utmost contempt to SC and BURSA authorities/Malaysia law.

Will SC now invoke CMSA 2007 section 358 (1) in the public interest, taking legal action against Xingquan to recover loss on behalf of victims who suffers loss or damage by reason of, or by relying on, the conduct of another person who has contravened any provision of Part VI or any regulations made under this Act, the amount of the loss or damage by instituting civil proceedings against the other person whether or not that other person has been charged with an offence in respect of the contravention or whether or not a contravention has been proved in a prosecution?

 

Question 3: Is SC investigating Xingquan External Auditor: SJ Grant Thornton, IPO: CIMB Investment Bank Berhad and PP & RI: RHB Investment Bank Berhad principal advisor, underwriter and placement agent for gross negligence and failure to perform their fiduciary duty?

 

SC response with some material information on above will be appreciated

Thank you

 

Best Regards

Lee Soon Sheng

 

 

Follow up letter dated: 3 Jan 2023, 07.34

Dear Datuk Muhamad Umar Swift,