The Securities and Futures Commission (SFC) has successfully obtained an interim injunction order against Ms. Leung Anita Fung Yee Maria, the former CEO and executive director of SMI Culture & Travel Group Holdings Limited (SMI Culture & Travel Group). The order was granted by the Court of First Instance following a hearing of a Mareva injunction application on February 6, 2024. This marks the first time that the SFC has obtained injunction orders of this nature in connection with an ongoing legal action under section 214 of the Securities and Futures Ordinance (SFO).
The purpose of the SFC’s action is to safeguard assets that may be used to fulfill any compensation order that the Court may impose at the conclusion of the SFC’s legal proceedings against Leung and two other individuals. The order prohibits Leung from removing any of her assets from Hong Kong and from disposing of or diminishing the value of her assets, both within and outside Hong Kong, up to the value of $235,363,373. Additionally, Leung is forbidden from taking any actions to implement or finalize two sale and purchase agreements relating to her properties in Shanghai and Canada, which were allegedly entered into in August 2023. The order will remain in effect until the proceedings reach a final determination.
The Court, in granting the order, was satisfied with the evidence presented by the SFC, which demonstrated Leung’s adeptness in utilizing a complex network of corporate and offshore entities as nominees to facilitate fund transfers and conceal her illicit activities. The Court expressed concerns that Leung may dissipate her assets in order to evade the consequences of a judgment against her. Christopher Wilson, the SFC’s Executive Director of Enforcement, emphasized the commission’s commitment to bringing wrongdoers to justice and ensuring their accountability for misconduct. The SFC intends to employ its full legal powers to prevent wrongdoers from evading legal liability.
Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=24PR84
