The Court of First Instance has convicted three individuals – Ms Sit Yi Ki, Ms Lam Wing Ki, and Mr Tam Cheuk Hang – of conspiracy to carry out false trading in the shares of Ching Lee Holdings Limited. This was the result of a historic 22-day market manipulation trial by jury. This case marks the first time an offense under the Securities and Futures Ordinance has been tried at the Court of First Instance. The nine-member jury unanimously found Sit and Tam guilty of the conspiracy charge, with Lam also being found guilty by majority verdict.
The prosecution stemmed from investigations by the Securities and Futures Commission (SFC) which revealed that between March and September 2016, Sit, Lam, Tam, and others conspired to maintain an artificial turnover of Ching Lee shares through manipulative transactions across 156 securities accounts under their control. This resulted in a false appearance of active trading and an artificial increase in trading volume, netting over $124 million in illicit profits. The SFC has praised the verdict as sending a strong deterrent message and underscoring its commitment to holding market manipulators accountable. The defendants have been remanded in custody pending sentencing, and the SFC has also commenced civil proceedings to freeze their assets.
Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR97