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Three jailed between 52 and 80 months in landmark market manipulation case

Issue date: 2024-07-22 18:04:59

The Court of First Instance today sentenced Ms Sit Yi Ki and Mr Tam Cheuk Hang to imprisonment of six years and eight months, and Ms Lam Wing Ki to imprisonment of four  years and four months after they were found guilty in a jury trial of conspiracy to carry out false trading in the shares of Ching Lee Holdings Limited following extensive investigations by the Securities and Futures Commission (SFC) and the prosecution by the Department of Justice (Note 1).

This is the heaviest jail sentence imposed on market manipulation cases since the Securities and Futures Ordinance (SFO) came into effect in 2003.

In sentencing, Deputy High Court Judge Douglas Yau remarked that the conspiracy in the present case was intricately and meticulously planned. Having considered various sentencing authorities, and taking into account the scale, sophistication and international element of the conspiracy and the false trading, as well as the importance of maintaining the integrity of Hong Kong as an international financial centre, the Court considered that deterrence and punishment are most important in this case.

The SFC’s Executive Director of Enforcement, Mr Christopher Wilson, said: “The jail sentences reflect that the Court is taking a very dim view of misconduct pernicious to the reputation and integrity of Hong Kong’s securities and futures markets. Putting the market manipulators behind bars sends a very strong and clear message to would-be wrongdoers that misconduct of any form has no place in Hong Kong’s financial markets, and that they would be brought to justice and face the full force of the law.”

“The outcome of this highly sophisticated and complex case also underscored the SFC’s determination to bring its resources and powers to bear in tackling market abuses and maintain investor confidence in Hong Kong’s capital markets,” Mr Wilson added.

In parallel, the SFC is seeking orders under section 213 of the SFO against various local and overseas corporations and individuals, including the three jailed, to disgorge their profits in the manipulative scheme involving Ching Lee shares and/or restore the affected counterparties to their pre-transaction positions. In this connection, the SFC had obtained interim injunctions freezing assets of up to $124.9 million, representing the combined profits generated from trading activities of the manipulative scheme (Note 2).  

The SFC would like to thank the China Securities Regulatory Commission, the Hong Kong Independent Commission Against Corruption, the Monetary Authority of Singapore, the Ontario Securities Commission, the Singapore Police Force, the United Kingdom Financial Conduct Authority, and the U.S. Securities and Exchange Commission for their assistance on this case.

End

Notes:

1. Please see the SFC’s press releases dated 29 May 2024 and 17 June 2024 for details.
2. Please see the SFC’s press releases dated 27 August 2019, 13 August 2020 and 31 October 2023.

News captured as of:2024-07-22 18:04:59

Source: SFC