FORMER Axis Incorporation Bhd adviser Lee Koon Huat must pay RM800,000 in fines by today or face imprisonment in default after the Kuala Lumpur High Court upheld his conviction for abetting the submission of false financial statements to Bursa Malaysia.
The court dismissed Lee’s appeal against his conviction and sentence for four offences involving the company’s reported revenue for the 2007 financial year, the Securities Commission Malaysia (SC) said.
Judge Noor Ruwena Md Nurdin upheld the Sessions Court’s sentence of six months’ imprisonment and a RM200,000 fine for each charge, with the prison terms to run concurrently.
After the ruling, the court granted a stay of execution for the prison sentence but refused to suspend payment of the fines. Lee must therefore pay the RM800,000 by the deadline or serve the default prison term.
The SC said the High Court found that the prosecution had proved the charges beyond reasonable doubt and that there were no grounds to interfere with the Sessions Court’s decision.
Lee was charged on March 26, 2013, under Section 122C(c), read together with Section 122B(a)(bb), of the Securities Industry Act 1983.
Evidence at trial established that he had instructed the inflation of Axis’ reported revenue in its four unaudited quarterly results for the 2007 financial year, the commission said.
Sessions Court judge Azman Ahmad convicted Lee on all four charges on April 11, 2022, following a full trial. Lee then appealed and secured a stay of execution pending the outcome.
The SC had also charged three former Axis executive directors — Lee Han Boon, Saipuddin Lim Abdullah and Koh Tee Jin — over false financial statements concerning revenue for the 2007 and 2008 financial years.
All three pleaded guilty midway through the prosecution’s case and were sentenced to jail terms ranging from one day to 12 months. Lee Han Boon and Koh were also fined RM200,000 each.
The SC said the High Court’s decision reaffirmed the importance of accurate financial reporting by publicly listed companies and its commitment to taking enforcement action against those who disseminate false or misleading information to investors. - October 28, 2026
