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ANOTHER DIRECTOR OF ISLAND RED CAFÉ FRANCHISE SDN BHD PLEADED GUILTY FOR DEFRAUDING INVESTORS

Thursday, 29 September 2011: The Shah Alam Sessions court today convicted Ong Tong Swan for committing an offence under section 27, section 363 (5) and section 366(3) Companies Act 1965 (‘CA 1965’).

Ong Tong Swan was previously charged by Suruhanjaya Syarikat Malaysia (‘SSM’) in February 2010 in relation to the Island Red Cafe investment scheme which had attracted approximately 1,500 investors to invest in the scheme. At the height of the operation of the illegal investment scheme, the company had collected approximately RM9 million from the member of the public.
At the time of the commision of the offence, Ong Tong Swan is the director of Island Red Cafe Franchise Sdn Bhd. 

Ong Tong Swan was sentenced to one (1) day imprisonment and a fine of RM20,000 in default 20 months imprisonment for the offence under section 366(3) CA 1965 and to one (1) day imprisonment and RM40,000 fine in default 30 months imprisonment in relation to the charge under section 363(5) CA 1965. In addition, the Court also imposed a one (1) day imprisonment and a fine of RM30,000 in default 30 months imprisonment for the conviction under section 27(1) Companies Act 1965.

The Judge of the Shah Alam Sessions Court directed the imprisonment sentence to run concurrently. Encik Mohd Zulklhairi prosecuted on behalf of SSM.

Previously on 12 August 2011, two former directors of Island Red Cafe Franchise Sdn Bhd, Teow Wooi Huat and Teow Chee Chow had pleaded guilty to the charge under sections 363(5) and 366(3) Companies Act 1965. Both, Teow Wooi Huat and Teow Chee Chow were also sentenced to one (1) day imprisonment and were ordered to pay fine RM90,000 and RM70,000 respectively.

ISSUED BY    :    SURUHANJAYA SYARIKAT MALAYSIA (SSM)
DATED        :    29 SEPTEMBER 2011