Tsang Chung Yu, ex-INED of Metaverse Yunji (ex-8287) and 11 others charged with alleged 66m share options fraud

We note that the 5-year options were granted on 8-Sep-2022, in the midst of a court battle for control of the board, exhausting the 10% limit in one go. All 10 recipients chose to exercise the options that day, with shares issued on 9-Sep-2022 and deposited with the same broker in CCASS. Only 2 purported directors, including Mr Tsang, signed the attendance sheet of the board meeting to grant the options. The other was ED Mr Cheng Kwan Yu, who is not charged. All 10 grantees are charged, along with a Chan Wai Lung, whose alleged role is not yet known. Helpfully, the ICAC routinely gives the ages of defendants. The SFC fails to do so, making it harder to identify them.

Further information

ICAC announcement

First court hearing on alleged share options fraud case

Issue date: 2024-10-25 18:11:26

Mr Tsang Chung Yu, a former independent non-executive director of Metaverse Yunji Technology Group Company Limited (Metaverse Yunji) and 11 other individuals were charged today in a fraud case involving the granting of share options following the joint operation of the Securities and Futures Commission (SFC) and the Independent Commission Against Corruption (ICAC) in January 2024 (Notes 1 and 2).

Tsang and the others, appearing in the Eastern Magistracy for mention today, were charged for conspiracy to defraud by the ICAC, with an alternative charge of conspiracy to deal with property known or believed to represent proceeds of an indictable offence (Note 3). The total amount of suspected crime proceeds handled by them was approximately $4.35 million.

Tsang allegedly conspired with others to defraud Metaverse Yunji between April and September 2022 by falsely representing that 10 of the 11 individuals were employees of the company, thereby inducing the company to grant 66 million share options to them (Note 3).

The SFC will continue to collaborate with the ICAC on this matter.

End

Notes:

  1. Metaverse Yunji, known as Zioncom Holdings Limited at the material time, was delisted in December 2023.
  2. The 11 individuals are Mr Chan Wai Lung, Mr Chan Sze Chai, Mr Chow Ching Ho, Mr Lee Hung Kai, Mr Leung Lok, Mr Wong King Lok, Ms Chan Oi Yan, Mr Chan Wai Sze, Mr Chung Shing Yip, Ms Pui Li Ming and Mr Eric Yeung.
  3. Please see ICAC’s press release for further details.
News captured as of:2024-10-25 18:11:26

Source: SFC

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