Islamic finance leader Daud Bakar charged with abetting unlicensed trading

FMT:

Islamic finance leader Daud Bakar charged with abetting unlicensed trading

4 hours ago
Faisal Asyraf

The 62-year-old pleaded not guilty to the charge under Section 58(1) of the Capital Markets and Services Act 2007

Daud Bakar previously served as chairman of the shariah advisory councils at both Bank Negara Malaysia and Securities Commission Malaysia. (Bernama pic)

KUALA LUMPUR: Islamic banking figure Daud Bakar pleaded not guilty in the sessions court here today after charged with abetting unlicensed securities trading activities involving a corporate entity.

Daud, who previously served as chairman of the shariah advisory councils at both Bank Negara Malaysia and Securities Commission Malaysia, entered his plea before judge Norma Ismail after the charge was read to him.

The 62-year-old was charged under Section 58(1) of the Capital Markets and Services Act 2007, which prohibits anyone from carrying out a regulated activity, including dealing in securities, without a valid capital markets services licence or being a registered person.


According to the charge sheet, Daud allegedly conspired with AUF MBZ Consortium PLT and two individuals linked to the entity between June 14 and Aug 9, 2021. AUF MBZ was neither a holder of a capital markets services licence nor registered to deal in securities.

The prosecution claimed the alleged conspiracy involved dealings connected to Energy Eco Bhd, which Daud was said to represent. The charge sheet did not disclose the value of the securities involved.


If convicted, Daud faces a fine of up to RM10 million, imprisonment of up to 10 years, or both.

The court granted bail of RM50,000 with one surety. Daud was also ordered to surrender his passport and report monthly to Securities Commission Malaysia pending the disposal of the case.

Case management is set for April 10.

Lawyer Haziq Razali represented Daud while Securities Commission deputy public prosecutor Shoba Venu Gobal appeared for the prosecution.


Meanwhile, AUF MBZ Consortium PLT founder Mahadi Badrul Zaman, 42, faced two charges on behalf of his company of conducting securities trading without the required licence or registration.

The alleged offences were said to have occurred at the company’s Subang Jaya premises during separate periods between June 2021 and February 2024.

The first charge, read before judge Azrul Darus, covered the period from June 14, 2021 to Aug 9, 2023, while the second charge, read before judge Norma Ismail, covered Sept 3, 2021 to Feb 15, 2024.

Under the Capital Markets and Services Act 2007, company representatives are deemed responsible for offences committed in the course of the company’s regulated activities. Conviction carries a maximum fine of RM10 million, imprisonment of up to 10 years, or both.


Mahadi pleaded not guilty to both charges.

QEW Group Bhd founder Iqbal Mohamad, 47, was charged on behalf of the company with conspiring with AUF MBZ Consortium PLT to carry out unlicensed securities trading.

The alleged offence was said to have taken place between Sept 3, 2021 and Feb 15, 2024, at the company’s Seri Kembangan premises. His charge was also framed under the Capital Markets and Services Act 2007.

Iqbal pleaded not guilty after the charge was read before judge Norma.

The court allowed bail of RM100,000 for Mahadi and RM50,000 for Iqbal. Case management for both was set for April 10.

Lawyer Zamri Idrus represented Mahadi while deputy public prosecutors K Mageswary and Danial Imran Nasaruddin handled the prosecution.

Lawyer Iylia Syazwani Abdul Jamil appeared for Iqbal, with Securities Commission prosecuting officer Quek Yiing Huey representing the prosecution.