This article first appeared in The Edge Financial Daily on October 11, 2019

KUALA LUMPUR: Dustin Cheah Yew Keat, former managing director (MD) of previously listed firm DIS Technology Holdings Bhd (DIS Tech), claimed trial yesterday to five counts of insider trading.

Cheah, 62, is alleged to have disposed of 2.88 million DIS Tech shares via accounts belonging to one Chuah Ni, while in possession of non-public information from March 1 to 4, 2010, said the Securities Commission Malaysia (SC).

The information referred to in all charges relates to the alleged misstatement of DIS Tech’s quarterly financial reports between the third quarter of 2008 and the fourth quarter of 2009, which had a significant impact on DIS Tech’s financial results, the SC said in a statement.

The charges under Section 188(2)(a) of the Capital Markets and Services Act 2007 carries a jail term of up to 10 years and a fine of not less than RM1 million, upon conviction.

Deputy public prosecutor from the SC, Zulaida Zulkifli, requested bail of RM300,000 for all charges at the Sessions Court yesterday, Bernama reported.

But Cheah’s lawyer S Subramaniam, in seeking for a lower bail, said his client is a person with disability, having suffered polio since the age of three, and is now a bankrupt, the report said.

The court then allowed Cheah bail of RM200,000 in one surety for all charges, and ordered him to surrender his passport. The case will be mentioned again on Dec 3.

DIS Tech was removed from Bursa Securities in August 2010, after failing to appoint a sponsor within a stipulated time frame to assist the company in drawing up a regularisation plan.

The manufacturer of modems and consumer electronic products first came under the spotlight in mid-March 2010 after allegations of fraud amounting to RM131.3 million surfaced.