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Four people charged following SFC and Police joint operation against securities fraud and illegal short selling

Issue date: 2023-06-23 17:07:58

Four suspects appeared at the Eastern Magistracy today charged with offences of fraud with alternative charge of illegal short selling following an earlier joint operation of the Securities and Futures Commission (SFC) and the Police against fraudulent activities in securities transactions and illegal short selling (Notes 1 & 2).

The SFC discovered the suspicious trading activities during an intensive investigation of suspected ramp-and-dump activities.  While investigating market misconduct offences under the SFO, the SFC also referred the case which involves suspected money laundering and other fraudulent activities to the Police (Note 3).

No plea was taken and the case was adjourned to 18 August 2023.  The case will be transferred to District Court for trial.

The suspects were released on cash bail ranging from $40,000 to $150,000 on the following conditions: (i) not to leave Hong Kong; (ii) surrender all travel documents; (iii) report to police station on regular basis; (iv) not to contact prosecution witnesses either directly or indirectly; (v) to reside at address given; and (vi) to inform police 24 hours prior to change of residence.

No further comment will be made as legal proceedings have commenced.

End

Notes:

1. Under section 16A of the Theft Ordinance, it is an offence for a person by any deceit and with intent to defraud induces persons to commit an act or make an omission which results in benefit to anyone else or in prejudice or a substantial risk of prejudice to another person.  The maximum penalty on indictment is 14 years imprisonment.
2. Under section 170(1) of the Securities and Futures Ordinance (SFO), it is an offence for a person to sell securities at or through a recognized stock market when he does not have, or does not believe or does not have reasonable grounds to believe that he has a presently exercisable and unconditional right to vest the securities in the purchaser of them.
3. The joint search operation was conducted under the arrangement of the Memorandum of Understanding signed between the SFC and the Police.  Please see the SFC's press release dated 25 August 2017.

News captured as of:2023-06-23 17:07:59

Source: SFC