Two former licensees, Mr Yip Chi Wing and Mr Tsoi Chiu Kwan, have been sentenced to three months of imprisonment each by the Eastern Magistrates’ Court. The conviction is related to their involvement in false trading of shares belonging to Forebase International Holdings Limited (Forebase). The offense occurred between 2015 and 2016, spanning a period of 10 months, and resulted in the creation of a false appearance of active trading in Forebase shares. Magistrate Mr Jeffrey Sze Cho Yiu, while sentencing the defendants, emphasized their significant roles as licensed brokers in carrying out the false trading. Considering the gravity of the offense and the importance of safeguarding the investing public, Mr Sze deemed an immediate custodial sentence appropriate in this case.
Mr Christopher Wilson, the Executive Director of Enforcement at the Securities and Futures Commission (SFC), expressed satisfaction with the court’s decision. He stated that the ruling delivered a clear message to individuals involved in false trading, highlighting the legal consequences of harming market integrity and eroding the trust and confidence of investors. Mr Wilson reaffirmed the SFC’s commitment to combating market misconduct and warned licensed individuals against abusing their positions for such purposes. He stressed the expectation for licensees to uphold high standards of conduct and act in the best interests of their clients and the overall market integrity. The SFC remains determined to take appropriate actions against those who engage in serious wrongdoing.
Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR90