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Securities fraud and illegal short selling case transferred to District Court

Issue date: 2023-08-18 17:23:50

The Eastern Magistracy today transferred to the District Court for trial the case against four defendants charged with offences of fraud and alternative offences of illegal short selling (Notes 1 & 2).

The case is adjourned to 7 September 2023 and the four defendants were released on bail under the same conditions as imposed on them in the previous mention hearing (Note 3).

The case stemmed from a joint operation of the Securities and Futures Commission (SFC) and the Police to combat social media ramp-and-dump activities. The SFC found in its investigation that the four defendants allegedly engaged in illegal short selling by deceiving the selling broker that they owned the relevant shares at the time of order placing when in fact they had none. 

No further comment will be made as legal proceedings have commenced.

End

Notes:

1. Under section 16A of the Theft Ordinance, it is an offence for a person by any deceit and with intent to defraud induces persons to commit an act or make an omission which results in benefit to anyone else or in prejudice or a substantial risk of prejudice to another person.  The maximum penalty on indictment is 14 years imprisonment.  
2. Under section 170(1) of the Securities and Futures Ordinance (SFO), it is an offence for a person to sell securities at or through a recognized stock market when he does not have, or does not believe or does not have reasonable grounds to believe that he has, a presently exercisable and unconditional right to vest the securities in the purchaser of them. 
3. Please see the SFC’s press release dated 23 June 2023.

News captured as of:2023-08-18 17:23:50

Source: SFC