LFE Corporation ex-director jailed for furnishing false statements to Malaysia Exchange


Individual jailed over boiler room scam

The Court of Appeal on Friday, 23 March 2018, has dismissed an appeal by former director of LFE Corporation Bhd (LFE), Alan Rajendram a/l Jeya Rajendram, against his conviction for furnishing false statements to Bursa Malaysia Securities Bhd (Bursa) in 2007.

In 2012, Alan, 62, was sentenced to one year jail and fined a total of RM1.2 million after being convicted by the Sessions Court of four charges of knowingly permitting the furnishing of false statements by LFE to Bursa. Alan’s appeal against the Sessions Court decision was dismissed by the High Court on 28 November 2016, following which he lodged an appeal to the Court of Appeal.

The false statements were in relation to fictitious purchases of approximately RM119 million made by LFE International Ltd, a subsidiary of LFE, in all four quarters of LFE’s unaudited financial results for its financial year ended 31 December 2007.

A three-panel bench presided by Justices Dato’ Abang Iskandar Abang Hashim, Dato’ Abdul Rahman Sebli and Datuk Yaacob Hj Md Sam found no merit in the appeal filed by Alan, and that the Prosecution had proven the case beyond reasonable doubt.

Alan was ordered to serve his jail sentence with immediate effect. The offences, under section 122B of the Securities Industry Act 1983 and section 369 of the Capital Markets and Services Act 2007, both carry a maximum fine of RM3 million and a jail term of up to 10 years.

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LFE Corporation ex-director jailed for furnishing false statements to Malaysia Exchange

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