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First immediate jail sentence for convicted unlicensed activity with a compensation order

Issue date: 2024-10-30 19:49:02

The Eastern Magistrates’ Court today sentenced Ms Lai Ka Yi to two weeks’ imprisonment and ordered her to pay a sum of $98,000 as compensation to a victim of her unlicensed activity after she was convicted of holding herself out as carrying on a business in dealing in securities without a licence from the Securities and Futures Commission (SFC).

This is the first time the Court has imposed an immediate jail sentence for an unlicensed activity offence under section 114 of the SFO with a compensation order in a prosecution brought by the SFC (Notes 1 and 2). Lai was also ordered to pay the SFC’s investigation costs. 

The Court heard that between April and 10 May 2018, Lai who was then a university student, held herself out to the victim, who she knew personally, as carrying on a business in dealing in securities. Lai enticed the victim to transfer to her bank account funds for her to invest in securities on the victim’s behalf (Note 3). In the end, the victim was unable to withdraw the investment from Lai except receiving from her $2,000 in purported earnings.   

Lai, who will appeal against both conviction and sentence, has been granted bail pending her appeal.

The SFC reminds the investing public to check the SFC’s Public Register of Licensed Persons and Registered Institutions on the SFC’s website (www.sfc.hk) to ensure that firms and individuals who provide dealing services in securities are properly licensed.

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Notes:

1. Under Schedule 5 to the Securities and Futures Ordinance (SFO), "dealing in securities" is a type of regulated activity under the SFO.  Under sections 114(1)(b)  and 114(8) of the SFO, it is an offence for a person, without reasonable excuse, to hold himself out as carrying on a business in a regulated activity without a licence from the SFC.   
2. Lai was charged with an offence under section 114(1)(b) and 114(8) of the SFO.  Please see the SFC's press release dated 14 March 2024.
3. Lai was licensed under the SFO and was accredited to Convoy Asset Management Limited (now known as OnePlatform Asset Management Limited) to carry on Type 1 (dealing in securities) regulated activity from 30 December 2015 to 11 January 2016.  Lai was not licensed in any capacity or in relation to any regulated activity at the material time of the offence and is currently not licensed by the SFC.

News captured as of:2024-10-30 19:49:03

Source: SFC