KUALA LUMPUR (May 23): The jail term for two former executive directors of Welli Multi Corp Bhd who were convicted for furnishing fake financial information to the authorities in 2005 has been extended from one day to six months.

The new jail term was handed down after the Court of Appeal allowed the Securities Commission Malaysia's (SC) appeal to enhance the punishments meted out against the two, i.e. brothers Ang Sun Beng, 71, and Ang Soon An, 67.

The original RM400,000 fine imposed on each of them in default of one year's jail was also maintained despite the new jail term issued.

They were found guilty of furnishing misleading revenue involving over RM141 million in fictitious sales and reporting a profit of RM5 million in Multi Welli's 2005 annual report, when the company had actually made a loss of RM35 million.

At the time, Sun Beng was managing director at Welli Multi, while Soon An was a member of its audit committee.

The duo was first convicted at the Kuala Lumpur Sessions Court in 2010. SC filed an appeal to the High Court against the lighter sentence then, but the court dismissed the appeal in 2016. Subsequently, SC filed an appeal to the Court of Appeal.

In allowing the SC's appeal today, the panel of three appellate judges, chaired by Datuk Wira Mohtaruddin Baki, unanimously found that the crime committed was planned and intended to deceive investors and the capital market.

"In meting out the deterrent sentence, it ruled that the courts have a duty to protect the capital market and henceforth the country's economy," the SC said in a statement. The other members of the panel were: Datuk Seri Zakaria Sam and Datuk Abdul Karim Abdul Jalil.

Welli Multi, later known as Energreen Corp Bhd, was a listed company on the then Second Board of Bursa Malaysia when the crime was committed. The company was later delisted on Aug 17, 2009.