Accounting Fraud- United U-Li And Roger Yue, Tan & Associates

Recently, the Securities Commission  charged United U-Li Corporation Berhad’s external auditor, Roger Yue, Tan & Associates engagement partner, Yue Chi Kin, in the Kuala Lumpur Sessions Court for abetting United U-Li Corporation Berhad in submitting false information to Bursa Malaysia Securities Bhd (Bursa).

Details:

About the Company:-

• United U-LI Corporation Berhad (ULICORP), specialized in Cable Trunking and cable tray, is an investment holding company with seven wholly-owned subsidiaries actively involved in the manufacturing and trading of cable support systems, cable management systems, integrated ceiling systems, building materials and light fittings.

• It was listed on the Kuala Lumpur Stock Exchange on 23 April 2002.

The Charges:

• The charge is the submitting of false information in relation to the profit before tax declared by United U-Li Corporation to Bursa in its Annual Report and Financial Statements for the year ended 31 December 2004. The financial statements were audited by Roger Yue, Tan & Associates, in which the accused was the engagement partner.

• Following the SC’s investigation, it was revealed that the profit before tax declared by the company in the report was inflated.

About the External Auditing Company:

• The external auditor of the company is Roger Yue, Tan & Associates which is a full bred Malaysian company.

• The engagement partner for the United U-Li is Mr.Yue Chi Kin

The Accused:

• Was charged by Securities Commission for abetting with the company on inflating the profit before tax of the year 2004

• The accused was charged under section 122B(b)(bb) of the Securities Industry Act 1983 read together with section 122C(c) of the same Act. He was charged after having failed to pay the compound offered by the Prosecution.Upon conviction the accused is liable to a fine not exceeding RM3 million or to imprisonment for a term not exceeding ten years or both.

• Yue was released on bail of RM100,000 with one surety, on the condition that his passport be surrendered to the Court.

Source: Business Time (Kuala Lumpur, 28 April 2009)

It is interesting to note that this case is looking at our Securities Commission charging personally the engagement partner for the false submission.