KUALA LUMPUR (Feb 26): AUF MBZ Consortium PLT, linked to an unlicensed securities trading case involving a prominent Islamic finance expert, pleaded not guilty to two charges in the Sessions Court on Thursday.
Founder Datuk Mahadi Badrul Zaman represented the company when the charges were read before judge Izralizam Sanusi.
Under the first charge, the company is alleged to have carried on a regulated activity — dealing in securities — without holding a Capital Markets Services Licence (CMSL) or being registered for the activity.
The offence was said to have taken place between June 14, 2021 and Aug 9, 2023 at Bayrocks Garden Waterfront Villa, Sunway South Quay in Subang Jaya, Selangor.
The second charge accuses the company of committing the same offence at the same location between Sept 3, 2021 and Feb 15, 2024.
Both charges were brought under Section 58(1) of the Capital Markets and Services Act 2007, punishable under Section 58(4), which carries a fine of up to RM10 million, imprisonment of up to 10 years, or both, upon conviction.
Securities Commission Deputy Public Prosecutor K Mageswary told the court no bail was proposed as the charges were against a company rather than an individual.
The company was represented by lawyer Zamri Idrus.
The court fixed April 10 for case management.
On Monday (Feb 23), Islamic finance expert Tan Sri Dr Mohd Daud Bakar was charged with conspiring with AUF MBZ Consortium, Mahadi and Iqbal Mohamad to trade in securities without a licence between June 14, 2021, and Aug 9, 2023. All three men claimed trial before the Sessions Court.
They were also ordered to surrender his passport to the court and check in with the Securities Commission Malaysia (SC) once a month.
Mahadi, who is the central figure in this whole case, also claimed trial for another charge before judge Azrul Darus, where he was alleged to have committed securities dealings with a CMSL between Sept 3, 2021, and Feb 15, 2024.
Daud was ordered to pay RM50,000 as bail, while Mahadi was ordered to pay a total of RM100,000 bail. Iqbal's bail was set at RM50,000.