KUALA LUMPUR (Oct 17): The High Court on Friday dismissed an application by Wong Jit Kiang, also known as Daniel Wong, to strike out a charge of abetting the former managing director of Multi-Code Electronics Industries (M) Bhd in defrauding the company of RM17.6 million in 2007.

Judge Muniandy Kannyappan ruled that the charge against Wong was valid and not defective, clearing the way for the case to proceed to trial, said the Securities Commission Malaysia (SC) in a statement.

The decision marks a key milestone in a protracted investigation by the SC, which has pursued Wong for more than 15 years.

Wong was charged under the Securities Industries Act (SIA) 1983 in May 2024 with abetting the late Gordon Toh Chun Toh — then managing director of Multi-Code — in using company funds to finance the purchase of over 11 million Multi-Code shares via Ace Prelude Sdn Bhd between March 26 and 28, 2007.

The charges were under Section 122C(c) of the SIA (which provides that anyone who abets the commission of an offence under the Act may be punished as if they had committed the offence themselves) and Section 87A(b) (which criminalises fraudulent acts in connection with the purchase or sale of securities — such as a director misusing company funds to manipulate share prices).

If convicted, Wong faces a fine of not less than RM1 million and a jail term not exceeding 10 years.

The SC noted that Wong had evaded authorities for 15 years prior to his arrest in May 2024, despite repeated efforts by the regulator to locate him. The courts issued warrants for his arrest in 2009 and again in 2019.

In his application to strike out the charge, Wong argued that it was invalid because Toh — the alleged principal offender — was never convicted under Section 87A(b) of the SIA. Instead, Toh was convicted in 2010 under Section 409 of the Penal Code for criminal breach of trust, a separate offence that carries a penalty of two to 20 years’ imprisonment, caning and/or a fine. Toh passed away in August 2012 while his appeal was still pending.

The SC countered that the absence of a conviction under the SIA for Toh did not render the abetment charge against Wong invalid. It argued that abetment is a distinct offence and can stand independently of the principal charge.

The High Court concurred, stating that it was not the court’s role to second-guess the charge at this stage and that it would be premature to set it aside. Muniandy ordered that the trial to proceed before the Sessions Court as scheduled.

Multi-Code’s share price peaked at RM1.78 on April 23, 2007, before tumbling to an all-time low of 21 sen by May 29, 2009 — an 88% drop. The company was later restructured and renamed MCE Holdings Berhad in June 2016 via a scheme of arrangement.