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Court convicts two former licensees of false trading

Issue date: 2024-04-25 19:34:22

The Eastern Magistrates’ Courts today convicted two former licensees, Mr Yip Chi Wing and Mr Tsoi Chiu Kwan of false trading in the shares of Forebase International Holdings Limited (Forebase) following a prosecution by the Securities and Futures Commission (SFC) (Notes 1 to 3).

Between 21 December 2015 and 17 October 2016, Yip and Tsoi maintained the turnover of the shares in Forebase by conducting manipulative and frequent transactions among various securities accounts under their control, resulting in an artificial increase in the trading volume of Forebase shares and creating a false or misleading appearance of active trading.

Yip and Tsoi pleaded guilty to the offence.  The Court adjourned the case to 16 May 2024 for sentence.   They were granted bail on these conditions: (i) not to leave Hong Kong; (ii) surrender all travel documents and (iii) reside at the reported residential address.  They were also ordered to pay the SFC’s investigation costs. 

The SFC’s Executive Director of Enforcement, Mr Christopher Wilson, said: “The SFC has zero tolerance for any forms of market misconduct. We are dedicated to safeguarding Hong Kong’s financial ecosystem by upholding market integrity and maintaining a level playing field.”

End

Notes:

1. Forebase, now known as Times Universal Group Holdings Limited, was listed on the Main Board of The Stock Exchange of Hong Kong Limited in 2003.
2. False trading constitutes an offence contrary to section 295 of the Securities and Futures Ordinance.
3. Yip and Tsoi were licensed representatives of KGI Asia Limited and South China Securities Limited respectively at the material time. Both Yip and Tsoi are currently not licensed by the SFC.

News captured as of:2024-04-25 19:34:23

Source: SFC