SFC freezes accounts in suspected social media pump & dump
They don't name the stock, but Webb-site can tell you it's probably Macau E&M (1408) which listed at $1.00 on 11-Sep-2020 and closed at $4.36 on 25-Nov-2020 before crashing 81.9% the next day. See the movements in our CCASS Analysis System.
SFC issues restriction notices to 13 brokers to freeze client accounts linked to suspected social media ramp-and-dump scam
Issue date: 2021-02-18 18:53:27
The Securities and Futures Commission (SFC) has issued restriction notices to 13 brokers, prohibiting them from dealing with or processing certain assets held in 54 trading accounts, which are related to a suspected social media ramp-and-dump scam involving the manipulation of the market in the shares of a company listed on The Stock Exchange of Hong Kong Limited between September 2020 and November 2020 (Notes 1 & 2).
The 13 brokerages are: Celestial Securities Limited, Central China International Securities Co., Limited, China Industrial Securities International Brokerage Limited, China Tonghai Securities Limited, Core Pacific – Yamaichi International (H.K.) Limited, KGI Asia Limited, Kingkey Securities Group Limited, Luk Fook Securities (HK) Limited, Monmonkey Group Securities Limited, Shanxi Securities International Limited, Zeus Securities Limited, Zhongtai International Securities Limited and Zinvest Global Limited.
The restriction notices prohibit them, without the SFC’s prior written consent, from disposing of or dealing with, or assisting, counselling or procuring another person to dispose of or deal with, any assets in any way in the trading accounts up to certain amounts, including: (i) entering into transactions in respect of any securities; (ii) processing any withdrawals or transfers of securities and/or cash on the instructions of any authorized person of the trading accounts or by any person acting on their behalf; (iii) disposing of or dealing with any securities and/or cash on the instructions of any authorized person of the trading accounts or by any person acting on their behalf; and (iv) assisting another person to dispose of or deal with any relevant property in a specified manner. They are also required to notify the SFC if they receive any of these instructions.
The SFC considers that the issuance of the restriction notices is desirable in the interest of the investing public or in the public interest.
The SFC’s investigation is continuing.
- The SFC issued the restriction notices pursuant to sections 204 and 205 of the Securities and Futures Ordinance.
- A social media ramp-and-dump scam is a form of stock market manipulation where fraudsters use different means to “ramp” up the share price of a listed company and then induce investors via social media platforms to purchase the shares they “dump” at an artificially high price.
- CELESTIAL SECURITIES LIMITED 時富證券有限公司
- Central China International Securities Co., Limited 中州國際證券有限公司
- CHINA INDUSTRIAL SECURITIES INTERNATIONAL BROKERAGE LIMITED 興證國際證券有限公司
- China Tonghai Securities Limited 中國通海證券有限公司
- CORE PACIFIC - YAMAICHI INTERNATIONAL (H.K.) LIMITED 京華山一國際(香港)有限公司
- KGI ASIA LIMITED 凱基證券亞洲有限公司
- KINGKEY SECURITIES GROUP LIMITED 京基證券集團有限公司
- LUK FOOK SECURITIES (HK) LIMITED 六福證券(香港)有限公司
- Macau E&M Holding Limited 濠江機電控股有限公司
- Monmonkey Group Securities Limited 大聖證券有限公司
- SHANXI SECURITIES INTERNATIONAL LIMITED 山證國際證券有限公司
- Zeus Securities Limited (HK) 晋立峰證券有限公司
- ZHONGTAI INTERNATIONAL SECURITIES LIMITED 中泰國際證券有限公司
- Zinvest Global Limited 尊嘉證券國際有限公司