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First District Court hearings for 18 defendants in three social media ramp-and-dump cases

Issue date: 2024-07-09 17:48:24

The District Court today held the first hearings of three large-scale and highly sophisticated social media ramp-and-dump cases against 18 defendants including the suspected ringleaders after the cases had been transferred from the Magistrates’ Court (Note 1).

The criminal proceedings arose from the joint investigations by the Securities and Futures Commission (SFC) and the Police into the alleged ramp-and-dump syndicates for various criminal offences including offences under the Securities and Futures Ordinance.

The 18 defendants in the three cases will be tried separately for the charges laid against them relating to the ramp-and-dump schemes involving the shares of three Hong Kong-listed companies – Eggriculture Foods Limited (Eggriculture); Fullwealth Construction Holdings Company Limited (Fullwealth); and KNT Holdings Limited (KNT) upon the prosecution’s application.

Among the 18 defendants, four of them face charges in two of the three cases (Notes 2 to 4).

The defendants had allegedly organised and executed ramp-and-dump schemes in the shares of Eggriculture, Fullwealth and KNT, by manipulating the trading of a large volume of those shares through numerous nominee accounts and inducing investors to buy the shares via different social media platforms.

No plea was taken and the cases were adjourned to 12 November 2024.

During today’s hearings, one of the 18 defendants made an application for the return of his travel documents and to leave Hong Kong. Another defendant sought to withdraw the bail condition regarding reporting to police station. The applications by the two defendants were refused by the Court. 

In the end, the Court granted each defendant bail on the conditions that (i) they are not allowed to leave Hong Kong; (ii) they surrender all travel documents; (iii) they pay cash in the same amount as ordered previously; (iv) they report to the police station on regular basis; and (v) they reside at the reported residential address and inform the Police of any change of residential address.

End

Notes:

1. Please see the press releases of the SFC dated 30 September 2022, 24 November 2022, 4 April 2023, 6 April 2023, 17 April 2023 and 19 June 2024.
2. Ms Tse Yiu Chung (formerly known as Tse Man Kwan), Mr Wu Hon Cheung, Mr Leung Chung Yi, Mr Cheung Chak Ho and Mr Chow Chi Man are charged with the offences of conspiracy to defraud and alternatively conspiracy to employ a scheme with intent to defraud or deceive in transactions involving Eggriculture shares.
3. Ms Tse, Mr Wu, Mr Tam Chung Wai (formerly known as Tam Sze Chun), Ms Ng Ka Man, Mr Tam Sze Leung and Mr Tso Wai Sum are charged with the offences of conspiracy to defraud and alternatively conspiracy to employ a scheme with intent to defraud or deceive in transactions involving Fullwealth shares and/or money laundering offences.
4. Mr Tam Chung Wai, Mr Tam Siu Ki, Mr Tam Sze Leung, Mr Kwok Wai Leung and Mr Joseph Chan Kai Sun are charged with the offences of conspiracy to defraud and alternatively conspiracy to employ a scheme with intent to defraud or deceive in transactions involving KNT shares and/or money laundering offences. Ms Kong Chan, Mr Tam Siu Hang, Ms Grace Cheung Sau Mei, Mr Stephen Lam Chi Kwong, Mr Benny Cheng Wo Biu and Mr Lee Po Ping are charged with money laundering offences.

News captured as of:2024-07-09 17:48:25

Source: SFC