The Securities and Futures Commission (SFC) has revoked the license of Nerico Brothers Limited (NBL) and banned its director, Jerff Lee Cheuk Fung, from all regulated activities for life due to severe misconduct, including the misappropriation of client assets. Between June 2020 and January 2021, NBL misused over US$68 million of a client’s funds without authorization, subscribing to shares in a Cayman-incorporated fund for its own benefit. Additionally, NBL facilitated a scheme orchestrated by Neo Ng Yu, leading to the misappropriation of approximately US$154 million from the same client. The SFC found that NBL provided false information during its investigation, presenting contradictory narratives and fabricated documents to cover up the misappropriation. The SFC determined that Lee’s direct involvement in these activities and his provision of misleading information warranted severe disciplinary action.
Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=25PR134
