KUALA LUMPUR (Oct 14): Shares of Stone Master Corp Bhd fell 3.70% this morning after the Securities Commission Malaysia (SC) filed a suit against Stone Master deputy managing director Datin Chan Chui Mei for allegedly causing wrongful loss to the marble and granite maker.

At 9.38am, Stone Master fell 1 sen to 26 sen with 58,300 shares done.

The SC said Stone Master had entered into several agency agreements with 23 foreign companies for the exclusive rights to market and promote, in Malaysia and Singapore, products belonging to foreign companies.

“In consideration of the exclusive rights granted to it, Stone Master paid several local representatives of the 23 foreign companies, a sum amounting to RM11.59 million in the form of a non-refundable deposit,” the SC said in a statement.

The SC alleged of the RM11.59 million, a sum of RM11.54 million was subsequently paid by the local representatives to Chan’s personal account, in breach of sections 179 and 317A(1) of the Capital Markets and Services Act 2007. Section 179 prohibits a person from using any manipulative device for subscription, purchase or sale of any securities.