KUALA LUMPUR: The Securities Commission (SC) yesterday charged Eswaramoorthy Pillay Amuther, 44, with abetting former LFE Corp Bhd director Alan Rajendram Jeya Rajendram in committing securities fraud and four other Penal Code offences.

In a statement, the SC said the charges against Pillay, a current director with Linear Corp Bhd, followed the regulator’s legal action against Rajendram at the Sessions Court last week.

“The fraud involved the use of RM9 million of LFE’s monies to finance Alan’s purchases of LFE shares pursuant to a private placement and restricted offer of LFE shares.

“The alleged act is said to have been committed between Jan 4, 2007 and Feb 8, 2007. If convicted, Pillay is liable to a fine of not less than RM1 million and imprisonment for a term not exceeding 10 years,” the SC said.

Apart from the securities law breach, Pillay was also charged under the Penal Code with abetting Rajendram to commit criminal breach of trust of a further RM9.99 million of LFE’s monies.

Another three charges were also made against Pillay with abetting two other directors of LFE in cheating EON Bank Bhd of RM3.96 million by supplying fictitious documents to enable the drawdown on LFE’s banking facilities.

Pillay, who pleaded not guilty to all five charges, was granted bail of RM1 million with one surety. He was further required to surrender all his travel documents. The case will be mentioned on July 27, 2010.

Last week, Rajendram, 53, had pleaded not guilty to nine charges against him. He was charged with defrauding LFE  by using RM9 million belonging to the company to acquire nine million LFE shares pursuant to a private placement and restricted offer, between Jan 4 and Feb 8, 2007.

He was also charged with knowingly permitting the furnishing of false statements by LFE to Bursa Malaysia for all four quarters of its financial year ended Dec 31, 2007, as well as abetting two individuals to cheat EON Bank of RM3.96 million.

Rajendram, a former director of Linear, has been at the centre of Linear’s “King Dome” saga.


This article appeared in The Edge Financial Daily, June 30, 2010.