1. 1
Master of Forensic Accounting and Financial Criminology
Sept 2012
 Part timers of MFAFC Sept 2012 Intake were
assigned to present a related case, where it was
initially charged then later acquitted.
 As part of the preso, the group is supposed to
use Fraud tools to uncover such fraud and turn
around the case, how it could have been
charged and make it stick by fact / data /
evidence gathering methodology.

2. Master of Forensic Accounting and Financial Criminology
Sept 2012
By
Syed Azharuddin bin Syed Abdul Rahman Al-Habshi
2012283182
Ahmad Azwadi bin Ameruddin
2012825688
Mohamad Rizal bin Ahmad
2012695998
12th January 2013
“ANOTHER COOKING BOOK CASE IN MALAYSIA”

3.  The Background Facts
 Fraud Case
 Methodology of Investigation Framework
 Fraud Detection Tools Used & Results
 Fraud Evidences Discovered
 Consequences & Legal Implication
 Limitation of Case
 Conclusion
3
Master of Forensic Accounting and Financial Criminology
Sept 2012

4. 4
Master of Forensic Accounting and Financial Criminology
Sept 2012
Category Information of Event & Activity
Date of incorporation 5 May 2004 with name of “Ocean Profits Sdn Bhd”
Change of name 21 June 2004 changed to “GP Ocean Food Sdn Bhd”
Principal place of business Unit No. B2, lot No. 2053151211, Manmohan’s Patau-
Patau Warehouse 87010 Labuan, WP
Principal Activities Culturing tiger prawn and crab and the operation of
seafood processing factories
Financial Year Ended 31 January
Proposed Listing in Main
Board of Bursa Malaysia
22 August 2005 - proposed public issue of 84.4
million new ordinary share at an indicative price of
RM1.08 per GP Ocean Food Berhad & admission to
official list of Bursa Malaysia & listing of and
quotation of its entire enlarged issued & paid-up
share capital of RM112,580,002 comprising
562,900,010 shares

5. 5
Master of Forensic Accounting and Financial Criminology
Sept 2012
Subsidiaries Principal activities
1) Gropoint Aquaculture Sdn Bhd Culturing of fishes
2) Gropoint Fisheries Sdn Bhd Sea fishing & operation of
seafood processing activities
3) Gropoint Seafood Industries Sdn
Bhd
Culturing and processing of tiger
prawn and crab
4) Poshwell Sdn Bhd Renting of shrimp farm
5) Trans Aquaculture Marine
(Sabah) SB
Renting of shrimp farm
6) GP Research & Development Sdn
Bhd
Research and development
activities relating to seafood
products and organic feeds
7) Nur Pesona Alam Sdn Bhd Property holding
8) GP Feedmill Industries Sdn Bhd Dormant
100%
equity
interest
held

6. 6
Master of Forensic Accounting and Financial Criminology
Sept 2012
 Appointed Alliance Merchant Bank Berhad (AMBB) as principal advisor.
 23 Aug 2005 – submitted the 1st listing proposal the SC based on Market
Capitalisation route.
 14 Feb 2006 – re-submitted the listing proposal based on Historical Profit
Track Record requires the applicant company to have a certain aggregate
after tax profit for the past 3 to 5 financial years with an aggregate after tax
profit of not less than RM30 million and an after tax profit figure of at least
RM8 million in the most recent financial year
 Audited F/Stmt 31 Jan 2006 recorded revenues such as follows:-
a) GP Ocean – RM180,462,052;
b) Gropoint Fisheries – RM142,452,400; and
c) Gropoint Seafood – RM38,009,652.
 23 Mar 2006 – SC approved GP Ocean’s proposal
 9 May 2006 – GP Ocean submit prospectus to SC for registration.
 19 May 2006 – SC revised listing application & requested top 10 customers
from 2004 – 2006.
 7 June 2006 – GP Ocean withdrew listing exercise after SC began its
investigation

7. 7
Master of Forensic Accounting and Financial Criminology
Sept 2012
No Directors Appointed Designation FYE 31 Jan
2005
FYE 31
Jan 2006
FYE 31
Jan 2007
1. Tan Siok
Wan
(his Spouse)
OKT 1
3.6. 2004 Sales &
Marketing
Director
22,775084
(direct)
18,679,233
(direct)
22,736,883
(indirect)
102,735,785
(direct)
135,052,925
(indirect)
2. Lee Sin
Teck
(her spouse )
OKT 2
3 .6.2004 Operation
Director &
Founder
26,848,709
(direct)
22,736,883
(direct)
18,679,233
(indirect)
135,052,925
(direct)
102,735,785
(indirect)
3. Dato’ Lim
Kim Ming
OKT 3
3.6.2004 CEO 1,748,709
(direct)
1,636,884
(direct)
Resigned as
director only
on 21.6. 2006
Directors who have shares/interest GP Ocean from FYE 2005 till FYE 2007:-
Legend:
OKT – “Org Kena Tuduh” (Accused)

8. 8
Master of Forensic Accounting and Financial Criminology
Sept 2012
No Directors Appointed Designa
tion
FYE 31
Jan 2005
FYE 31 Jan
2006
FYE 31 Jan
2007
4. Hazli
Ibrahim
1.06.2005 Director Nil 1,250,000 6,975,000
5. Dato’
Shahrom
Abd Majid
3 .6.2004 Director Nil 17,600,002
(indirect)
Resigned
as director
only on
31.7. 2006
1. Lim Kim Hai
OKT 4
Appointed
1.06.2005
Finance
Director
Nil Nil Resigned as
director on
28.8.2006
Director who no shareholdings & OKT 4
Directors who have shares/interest GP Ocean from FYE 2005 till FYE 2007:-
Legend:
OKT – “Org Kena Tuduh” (Accused)

9. 9
Master of Forensic Accounting and Financial Criminology
Sept 2012
Lee & Tan
Principal Charges

10. 10
Master of Forensic Accounting and Financial Criminology
Sept 2012
Alternative charges

11.  Securities Commission Act 1993
 Section 32B(1)(a)(aa)
32B. (1) Where any statement or information is required to be
submitted to the Commission under this Division in relation to or
in connection with any proposal submitted pursuant to section 32—
(a) an applicant, any of its officers or associates;
shall not—
(aa) submit or cause to be submitted any statement or
information that is false or misleading;
 Section 138 Offences by bodies corporate was a director,
a chief executive officer, an officer, an employee, a representative
or the secretary of the body corporate or was purporting to act in
such capacity

12. 12
Master of Forensic Accounting and Financial Criminology
Sept 2012
 Began receiving complaints about possible
irregularities in the firm's financial statements
by public.
 SC investigated the complaints and also raided
the offices of GP Ocean.
 Enforcement Stage :-
1. Obtain information to review and perform
forensic analytical procedures.
2. Collecting emails and other documents belonging
to the person.

13.  Enforcement stage (continues)
3. Review of the unstructured data & understanding
of the issues involved.
4. Analyse the structured data selected through
financial information and selected individuals
(witnesses) to find and better understand
5. Any suspicious information or red flag.
6. List down of the interviewee starts from the person
(whistle blower), anyone in contact/relates with
that person (i.e. his/her superior, staff, customer,
vendor etc) and lastly the persons mentioned in the
allegations (suspects).

14.  Enforcement stage (continues)
7. Compiles the findings based on all evidence
gathered such as emails, documents,
interview/witness statement and files to
conclude the investigation.
8. Prepares an Investigation Report with the
relevant evidence and proves to show that
offender/accused either is liable or not in the
case.

15.  Enforcement stage (continues)
9. Submits and presents the Investigation
Report to the prosecution for changed if the
offender is liable in
10. If Prosecution not satisfy, repeat again step
number 2,6,7,8 & 9

16. 16
Master of Forensic Accounting and Financial Criminology
Sept 2012
 For this, Group SAM will be using the Altman
Z-Score to detect such fraud occurred in GP
 It is generally used for detection or prediction
of bankruptcy, but it has also proven to be
reliable in detecting Fraud cases.

17. Master of Forensic Accounting and Financial Criminology
Sept 2012 17
Working
Capital /
Total
Assets
Retained
Earnings /
Total
Assets
EBIT/
Total
Assets
MV of
Equity /
BV of
Total
Liabilities
Sales/
Total
Assets
X1 X2 X3 X4 X5

18. 18
Master of Forensic Accounting and Financial Criminology
Sept 2012
No. Industry Result Zones
1. General
Z > 2.99 Safe
1.81 < Z < 2.99 Grey
Z < 1.81 Distress
2. Private Entity
Z' > 2.9 Safe
1.23 < Z' < 2. 9 Grey
Z' < 1.23 Distress
3.
Non manufacturing
& emerging market
Z > 2.6 Safe
1.1 < Z < 2. 6 Grey
Z < 1.1 Distress

19. 19
Master of Forensic Accounting and Financial Criminology
Sept 2012

20. 20
Master of Forensic Accounting and Financial Criminology
Sept 2012

21. 21
Master of Forensic Accounting and Financial Criminology
Sept 2012

22. 22
Master of Forensic Accounting and Financial Criminology
Sept 2012

23. 23
Master of Forensic Accounting and Financial Criminology
Sept 2012

24. 24
Master of Forensic Accounting and Financial Criminology
Sept 2012

25. 25
Master of Forensic Accounting and Financial Criminology
Sept 2012

26. 26
Master of Forensic Accounting and Financial Criminology
Sept 2012
The diagram show how the sales were eventually recorded as
revenue in the audited financial statements

27. 27
Master of Forensic Accounting and Financial Criminology
Sept 2012
10 top customers in FYE 31 Jan 2006:
Contributed 54.4% of total revenue – RM98Million out of 180Million

28. 28
Master of Forensic Accounting and Financial Criminology
Sept 2012
4 US companies confirmed no sales occurred with GP Ocean FYE 2006:

29. 29
Master of Forensic Accounting and Financial Criminology
Sept 2012
The diagram o f “false sales ” to 4 US companies and the actual
payment made through 2 main subsidiaries of GP Ocean:-

30. 30
Master of Forensic Accounting and Financial Criminology
Sept 2012
Summary of facts deposed in these 4 US companies:-

31.  Company's IPO was subsequently aborted and
the monies returned to investors after the SC
found irregularities in their IPO submission.
 Punishment Section 32B(4)
(4) A person who contravenes subsection (1) or
subsection (3)
 shall be guilty of an offence and shall on conviction
be punished
 with a fine not exceeding three million ringgit or
imprisonment for
 a term not exceeding ten years or both.
Master of Forensic Accounting and Financial Criminology
Sept 2012

32. 32
Master of Forensic Accounting and Financial Criminology
Sept 2012
 Judge S. M. Komathy Suppiah made decision
in the case :-
1. Failure of the Securities Commission (SC) to call
four witnesses from United States'' companies
which GP Ocean contended had business
transactions, weakened the prosecution's case.
2. Judge ruled that the SC mainly had relied on
affidavits affirmed by the representatives of the
companies and that their presence in court was
crucial.

33. 33
Master of Forensic Accounting and Financial Criminology
Sept 2012
3. The prosecution's (SC''s) case was centred that no
such transactions ever occurred between GP
Ocean and the said companies but Judge
Komathy said all the four affidavits could not be
accepted as evidence in court because the
deponents of the affidavits should be in court
 As required under Section 32 of the Evidence
Act 1950, Cases in which statement of relevant
fact by person who is dead or cannot be
found, etc., is relevant.
 In this case, USA can’t release them same case
InventQ Jaya Dr. Firdauz lectures.

34. 34
Master of Forensic Accounting and Financial Criminology
Sept 2012
 In depth interrogation or witnesses
 Evidence collection through SC investigation
report & audited financial statements
 Logic and common sense
 Visualize loopholes and sequential of events
 Actus Reus (AR) and Mens Rea (MR)
 Statutory bodies
 Expertise from various fields
 Timing constraint

35. 35
Master of Forensic Accounting and Financial Criminology
Sept 2012
In the session court of Kuala Lumpur Case No. 62A-160-2007,
62A-159-2007, 62A-208-2007 & 62A-209-2007
(PP v Tan Siok Wan, Lee Sin Teck, Lim Kim Ming & Lim
Kim Hai)
Report
1. www.investopedia.com 2. www.wikipedia.org
3. www.ssm.gov.my 4. www.scribd.com/doc/
5. www.sc.com.my 6. www.hmetro.com.my
7. www.thestar.com.my 7. www.nst.com.my
8. www. halalexporter.com 9. www.importgenius.com
Internet
1. Schilit H.M (3rd Edition) “Financial Shenanigans”
Books

36. Master of Forensic Accounting and Financial Criminology
Sept 2012
Danke Schon

37. Master of Forensic Accounting and Financial Criminology
Sept 2012