Hong Kong’s SFC files charge against 24 in Ramp-and-Dump stock investment scheme
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Hong Kong’s securities regulator, the Securities and Futures Commission (SFC), has charged 24 individuals for market manipulation. These charges are associated with multiple ramp-and-dump stock investment schemes announced by the company.
SFC charges 24 for ramp-and-dump investment schemes
The charges filed by the SFC against these individuals come several months after a series of thorough investigations conducted by the SFC and the Hong Kong Police Force. These charges accuse these individuals of participating in money laundering.
On Friday, the SFC imposed charges against two additional individuals linked to money laundering, bringing the total number of charged individuals to 24. The two new suspects were brought before a magistrate court in Hong Kong, according to a statement released by the SFC.
The charges imposed by the SFC also come days after the regulator arraigned one of its former licensed representatives, Leung Chung Yi. At the time, the regulator said Leung was charged with “a large-scale and sophisticated syndicate” and participating in a ramp-and-dump market manipulation scheme.
The SFC has also said that Leung participated in a conspiracy to use a scheme with the intent of defrauding others or making false transactions involving securities. The former representative at the SFC secured bail on multiple conditions. He was granted a cash bail of $600,000.
On April 4, the SFC filed charges against six suspects that were key members and the alleged leader of the syndicate. The SFC charged four of the suspects with conspiracy to commit securities fraud, and they received a cash bail of between $500,000 and $1 million.
The SFC said that the suspects were working with other suspects that were arrested previously. These suspects worked together to use several nominee accounts to trade the shares of two target stocks and pump the prices of these stocks between September 2018 and April 2019.
The SFC released a statement saying that this syndicate lured investors to investing in the shares of the stock using social media platforms to facilitate the disposal of these shares at a profit. After the demand for this stock was exhausted, the price crashed between November 2018 and April 2019.
SFC is committed to the integrity of the securities market
The latest actions taken by the SFC come after the arraignment of 14 individuals that are believed to be part of the syndicate. These individuals were arrested between September and November last year. The SFC said that it froze around $650 million in the trading accounts of the members believed to belong to this syndicate.
The Executive Director of Enforcement at the SFC, Christopher Wilson, commented on the development, saying that it wanted to ensure that those suspected of market misconduct were brought to justice and that the integrity of the Hong Kong financial market and the investing public was protected.
Wilson noted that the SFC would not hesitate to use the legal and regulatory tools available and partner with law enforcement agencies to battle financial crimes and ensure that investors are protected from fraudulent schemes and individuals.
