HK Court issues prison sentences to two former brokers for false trading
The Eastern Magistrates’ Court has sentenced two former licensees, Mr Yip Chi Wing and Mr Tsoi Chiu Kwan, to three months of imprisonment each following their convictions for false trading in the shares of Forebase International Holdings Limited.
In sentencing, Magistrate Mr Jeffrey Sze Cho Yiu said that Yip and Tsoi played important roles in the false trading of Forebase shares in their capacity as licensed brokers.
The offence, which took place over a period of 10 months during 2015 and 2016, created false or misleading appearance of active trading in Forebase shares.
Having taken into account the serious nature of their offence and the need to protect the investing public, Mr Sze concluded that immediate custodial sentence was appropriate in the circumstances of the case.
“The court’s decision sends a clear message to perpetrators of false trading on the legal consequence for harming market integrity and undermining the trust and confidence of the investing public,” said Mr Christopher Wilson, the Securities and Futures Commission’s (SFC) Executive Director of Enforcement.
“The SFC will not tolerate licensed persons who abuse their positions to engage in market misconduct, and we will not hesitate to take actions against them because their wrongdoings are serious. Licensed persons should always bear in mind that they are expected to uphold high standards of conduct and to act in the best interests of clients and the integrity of the market,” Mr Wilson added.
