Ex-investment banker jailed, fined RM1mil for securities fraud

KUALA LUMPUR: The Kuala Lumpur Sessions Court today sentenced a former investment banker to two years’ jail and a RM1mil fine, or six months’ jail in default, for securities fraud involving RM201,000.

In a statement, the Securities Commission (SC) said Ruwan Amaresh Shaun Ponniah, a former associate director at CIMB Investment Bank, was sentenced by Sessions Court judge Norma Ismail after pleading guilty to a charge under Section 179(b) of the Capital Markets and Services Act 2007.

The court also took into consideration nine other similar charges under section 171A of the Criminal Procedure Code (CPC). Ruwan had falsely represented to seven investors that he would invest their monies in shares listed on the Malaysian and foreign stock exchanges. The monies were instead utilised for other purposes without the investors’ knowledge.

Ruwan also pleaded guilty to a charge under Section 58(1) of the CMSA for unlawfully holding himself out as a licensed fund manager.

The court sentenced him to two years imprisonment and ordered for the jail term to run concurrently with the first offence. Fund management is a regulated activity under Schedule 2 of the CMSA.

The offences took place between October 2018 and June 2020.

Ruwan’s plea was made in pursuant to his application for a plea bargain under section 172C of the Criminal Procedure Code (CPC).

He was first arrested and charged by the SC on Sept 18, 2024. He claimed trial to all the charges and was granted bail at RM210,000 with one surety.

On Feb 5, 2025, the High Court reduced Ruwan’s bail to RM105,000 following his application. However, he failed to post bail and has been held at Sungai Buloh Prison since. The court ordered his jail term to begin from the date of his arrest.

The SC reminds the public to remain vigilant and to confirm the legitimacy of any investment offers by using the Investment Checker, available at www.sc.com.my/investment-checker on its official website.