High Court dismisses ex-Axis adviser’s appeal, upholds jail term and RM800,000 fine

KUALA LUMPUR, Oct 28 — The High Court here today dismissed the appeal by former Axis Incorporation Bhd board adviser Lee Koon Huat against his conviction and sentence on four charges of abetting the furnishing of false financial statements to Bursa Malaysia.

In a statement today, the Securities Commission (SC) said Judge Noor Ruwena Md Nurdin held that the prosecution had proven the charges against Lee beyond reasonable doubt at trial and there were no grounds to interfere with the Sessions Court’s decision.

“The High Court further agreed with the SC’s submission that the sentence imposed against Lee was appropriate in view of Lee’s role in the commission of the offences. 

“As such, the court dismissed Lee’s appeal against sentence and upheld the sentence imposed by the Sessions Court, being six months’ imprisonment and a fine of RM200,000 for each charge or in default, six months’ imprisonment,” it said.

The statement said, the court allowed Lee’s application for stay of execution in respect of the sentence of imprisonment, but declined to grant a stay in respect of the fine. 

“Lee will have to pay a total fine of RM800,000 by today, failing which he will be imprisoned in default of the payment,” said the statement.

The SC said Lee was initially charged at the Sessions Court on 23 March 2013 with four charges under Section 122C(c) read together with Section 122B(a)(bb) of the Securities Industry Act 1983 (SIA) for abetting Axis in the furnishing of false financial statements relating to the revenue of Axis for the financial year 2007. 

“Evidence adduced during the trial established that Lee had instructed the inflation of Axis’ reported revenue in its four unaudited quarterly results for the financial year 2007,” it said.

The SC had also previously charged three former Axis executive directors, Lee Han Boon, Saipuddin Lim Abdullah and Koh Tee Jin, with offences relating to the furnishing of false financial statements for the 2007 and 2008 financial years.

All three pleaded guilty and were sentenced to imprisonment terms ranging from one day to 12 months, while Lee Han Boon and Koh were also sentenced to fine of RM200,000 respectively.

Deputy Public Prosecutor Shoba Venu Gobal and prosecuting officers Low Wen Zhen, Eunice Ong, and Amina Qistina Mohd Idris appeared for the SC while Lee was represented by counsel Jason Ng Kau and Caroline Lee. — Bernama