KUALA LUMPUR (Sept 19): The Securities Commission Malaysia (SC) on Wednesday (Sept 18) charged an associate director of Debt Capital Markets at CIMB Investment Bank for defrauding investors.

Ruwan Amaresh Shaun Ponniah was charged at the Sessions Court here with seven charges of defrauding investors to the tune of RM201,000.

He allegedly carried out the fraud by making investors deposit money for shares investments.

He was also charged with an additional offence relating to unlicensed capital market activities for the offences, which allegedly took place between October 2018 and June 2020.

Ruwan, 35, faced 10 charges under Section 179(b) of the Capital Markets and Services Act 2007 (CMSA) for falsely representing to seven individuals that he would invest their monies in shares listed on the Malaysian and foreign stock exchanges.

If convicted, Ruwan faces a jail term not exceeding 10 years, and a fine of not less than RM1 million.

In the additional charge, under Section 58(1) of the CMSA, Ruwan is accused of carrying on a business in fund management without being a licensed or a registered person for fund management under the CMSA.

According to a statement to the media by the SC, fund management is a regulated activity under Schedule 2 of the CMSA; thus, any person carrying out this activity must be licensed by the SC.

This offence carries a maximum fine of RM10 million or imprisonment for a term not exceeding 10 years, or both, if convicted.

Ruwan claimed trial to all 11 charges, in three separate courts, and was imposed with a total bail sum of RM210,000.

For the sole charge under Section 58(1) of the CMSA and three charges under Section 179(b) of the CMSA, Sessions Court judge Siti Aminah Ghazali granted bail at RM120,000 with one Malaysian surety.

The accused was also given additional bail conditions, namely to surrender his passport to the court, and to report to the SC’s investigating officer on a monthly basis.

Separately, before Sessions Court judge Azrul Darus, Ruwan was charged with four charges under Section 179(b) of the CMSA. He was granted bail of RM60,000 with two Malaysian sureties, and similar additional bail conditions.

Before Sessions Court judge Hamidah Mohamed Deril, Ruwan was charged with three charges under Section 179(b) of the CMSA. He was granted bail of RM30,000 with one Malaysian surety, and similar additional bail conditions.