Hong Kong Court Convicts Fraudulent Trading in Forebase Shares
东区裁判法院裁定两名前持牌人叶志荣先生和蔡照群先生虚假交易罪名成立。
On April 25th, the Eastern Magistrates' Court ruled that two former licensees, Mr. Yip Chi Wing and Mr. Choi Chiu Kwan, were convicted of engaging in false trading in the stock of Forebase International Holdings Limited under a suit brought by the Securities and Futures Commission (SFC) in Hong Kong.
Yip and Choi were respectively licensed representatives of KGI Asia Limited and South China Securities Limited. Currently, neither Yip nor Choi holds a license from the SFC.
Between December 21st, 2015, and October 17th, 2016, Yip and Choi maintained the trading volume of Forebase stock by manipulation and frequent trading among various securities accounts under their control, resulting in an artificial increase in the trading volume of Forebase stock and creating a false or misleading appearance of active trading.
Yip and Choi pleaded guilty to the charges. The court adjourned the case for sentencing to May 16th, 2024. They were granted bail under the conditions that:
(i) they must not leave Hong Kong;
(ii) surrender all travel documents;
(iii) reside at the reported address.
In addition, they were ordered to pay the investigation costs of the SFC.
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