The Eastern Magistrate’s Court today convicted Ms Yeung Tak Sum, an unemployed retail trader of pleading guilty to securities fraud involving illegal short selling.
On May 2020. Yeung submitted a settlement instruction form to her broker purporting that she had 15 million shares in Hong Kong listed Pacific China Group Limited in brokerage firm. The broker allowed Yeung to sell the shares before the purported transfer of shares was settled. Yeung did not hold the shares at the time she submitted the settlement instruction when she sold the shares. She then proceeded to buy the same quantity of shares at lower price to cover her short sold position within the same day. She obtained illicit profit.
The conviction of a charge of employing fraudulent scheme with intent to defraud in transaction involving securities of illegal short selling.
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