Market manipulator jailed for false trading
The Hong Kong Securities and Futures Commission (SFC), an independent statutory body set up to regulate the securities and futures markets in Hong Kong, has issued a press release informing that the Eastern Magistrates’ Court sentenced Mr Chan Wing Fai to one month’s imprisonment after he was convicted on seven charges of false trading in the shares of Sonavox International Holdings Limited (Sonavox) and PacMOS Technologies Holdings Limited (PacMOS).
The Securities and Futures Commission (SFC) alleged that Chan manipulated the share price of both stocks to create a higher nominal and closing price through small orders before profiting by selling larger parcels of the same shares at the higher prices. This caused a false or misleading appearance with respect to the markets for Sonavox and PacMOS. Chan made a profit of approximately $50,000.
Chan had been acquitted in 2012 following a trial in respect of the same offences but the case was remitted back to the Eastern Magistrates’ Court for reconsideration following a successful appeal by the SFC (Note 1).
This is the second time Chan has been convicted of false trading (Note 2).
Deputy Magistrate Leung decided that an immediate prison sentence was the only way to reflect the seriousness of Chan’s offence and to deter Chan from offending again.
Notes:
Please see the SFC’s press releases dated 13 January 2012, 23 January 2014 and 11 April 2014.
Please see the SFC’s press release dated 22 October 2008.
Source: SFC
