The Eastern Magistrates’ Courts have convicted two former licensees, Mr. Yip Chi Wing and Mr. Tsoi Chiu Kwan, of false trading in the shares of Forebase International Holdings Limited. The conviction follows a prosecution carried out by the Securities and Futures Commission (SFC). Between December 21, 2015, and October 17, 2016, Yip and Tsoi engaged in manipulative and frequent transactions across different securities accounts under their control to artificially increase the trading volume of Forebase shares. Their actions created a false or misleading appearance of active trading.
Both Yip and Tsoi pleaded guilty to the offense. The Court has adjourned the case until May 16, 2024, for sentencing. They have been granted bail under specific conditions, including not leaving Hong Kong, surrendering all travel documents, and residing at their reported residential addresses. Additionally, they have been ordered to pay the SFC’s investigation costs.
Mr. Christopher Wilson, the SFC’s Executive Director of Enforcement, expressed the commission’s commitment to maintaining market integrity and a level playing field, stating that they have zero tolerance for any forms of market misconduct. The conviction of Yip and Tsoi reflects the SFC’s dedication to safeguarding Hong Kong’s financial ecosystem.
Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR80