Investigation of the SC: BVI- and US-based funds charged in connection with the Malaysian company fraud

There are about two years that passed after the shares of Malaysian company Iris Corp Bhd were said to be manipulated, now the Securities Commission has filed civil action against five corporations, and sanctioned two stockbroking houses and two dealers representatives involved in the case. Formal investigation was initiated by the SC after Iris was declared a designated counter on May 11, 2006.

One of the defendants in the suit by the SC is Low Thiam Hock (known also as Repco Low), who was alleged to have manipulated the shares of Repco Bhd in the late 1990s, the other defendant is Richard Cohen, an American citizen alleged to have acted together with Low and some others, in using numerous trading accounts that contributed to the strong demand for Iris shares.  It is said by the SC that the defendants together with their representatives “worked closely with the Malaysian defendants, creating an artificial demand for Iris shares.”

The funds charged are based in the United States-based Aeneas Capital Management and its related companies Aeneas Evolution Portfolio and Aeneas Portfolio Com, and also in the British Virgin Islands-registered companies Priam Holdings Ltd and Acadian Worldwide Inc.

Now, the commission is seeking a declaration from the court that all the defendants defrauded investors and conspired to manipulate the market and share price of Iris. Also, the SC is seeking that all profits made by the defendants in the trading of Iris shares be held in a trust for the benefit of affected investors, and that the assets of the defendants should be used as a compensation for affected investors.