SEC compounds case against Laugfs Chairman Wegapitiya

The Securities and Exchange Commission of Sri Lanka (SEC) has filed action against W.K.H. Wegapitiya, prominent business professional and Chairman Laugfs PLC for offences of conspiracy to commit Market Manipulation and committing Market Manipulation in shares of Laugfs Gas PLC (LGL) during 07th to 10th October 2011.

The action was filed under the provisions of the then SEC Act No 36 of 1987 as amended before the Magistrates’ Court, Fort in Case bearing No 16967/20, the regulator said in a website announcement.

An application was made in Court by the Counsel representing W.K.H. Wegapitiya in order for the SEC to consider compounding these offences in terms of Section 51A of the then Act, it added.

Having considered the loss caused to the Employees’ Provident Fund (EPF), the time since the said offences were committed, the accused agreeing to settle the loss caused to the EPF, other pending litigation connected to this case, and the absence of previous convictions, the Commission decided to consider the application to compound the said offences upon the payment of a sum of Rs. 6.6 million to the Compensation Fund of the SEC by this accused.

This compounding was effected following W.K.H. Wegapitiya together with the other accused in this case, U.K. Tilak N de Silva and T. I. Hulangamuwa agreeing to settle the EPF the excess amount of Rs. 231 million paid by the EPF in respect of the 33 million shares of Laugfs Gas PLC bought at Rs. 48 on 10th October 2011, the statement explained.

The amounts referred to above were settled to the EPF and to the SEC in open court by Mr. Wegapitiya and the other two accused when the matter was called before the magistrate on July 19, 2024 and the said funds were duly credited to the EPF and to the Compensation Fund of the SEC respectively. (DEC)