繁

Arrest warrant issued for alleged social media ramp-and-dump manipulator

Issue date: 2021-04-01 17:30:31

The Eastern Magistrates’ Court today issued a warrant to arrest Ms Zeng Lingxi after she failed to appear in Court to answer two charges of obstructing the Securities and Futures Commission’s (SFC) search operation in May 2020 (Notes 1 & 2).

The SFC’s search operation related to an investigation of a suspected social media ramp-and-dump scam involving manipulation of the shares of a Hong Kong-listed company (Note 3).

Zeng, an alleged member of a syndicate suspected of operating social media ramp-and-dump scams, is summoned for obstructing employees of the SFC in the execution of a search warrant and in exercising the powers under the Securities and Futures Ordinance during the search operation.

The Court was being told that Zeng had not returned to Hong Kong since her departure on 15 November 2020.

The Court also ordered that Zeng’s cash bail of $100,000 be forfeited.

End

Notes:

1. Please see the SFC’s press releases dated 20 August 2020 and 11 November 2020.
2. The SFC has added Zeng to the list of individuals subject to arrest warrants under the “Have you seen these people?” on the SFC’s website.
3. 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.

News captured as of:2021-04-01 17:33:28

Source: SFC