Brokers jailed for frustrating SFC inquiries over market manipulation involving Shanghai Land
2005-12-16
Two foreign exchange brokers, charged by the ICAC, were today (Friday) jailed for their roles in frustrating an investigation by the Securities and Futures Commission (SFC) in relation to market manipulation of the trading in shares of publicly listed Sha nghai Land Holdings Limited (Shanghai Land).
Lam Kai-sing, 43, and Cheung Pak-yau, 46, were respectively jailed for eight and six months by Judge Alan Wright.
The defendants had earlier pleaded guilty to a total of three counts of knowingly making a false statement in answering questions put to them by the SFC in relation to an investigation in respect of dealings in shares of Shanghai Land.
The offences took place between April and May, 2003.
In sentencing, the judge said the defendants' dishonest act was premeditated.
The judge added that immediate custodial sentences were necessary to bring about a deterrent effect and to safeguard Hong Kong's reputation as an international financial centre.
The court heard that at the time of the offences, Mo Yuk-ping was the general manager of Shanghai Land, while Chung Sau-ling was the secretary of Mo.
The defendants came to know Mo through a common friend, Siu Yim-wah.
In 2000, the defendants were approached by Siu, who requested them to open securities accounts with a number of brokerage firms in their names. The defendants were told that such accounts were for Mo's use, and they agreed to the arrangement.
On September 30, 2002, with the defendants' knowledge, subscription of 20 million and 10 million shares of Shanghai Land, placed from Global Town Limited, the major shareholder of the listed company, were effected in the name of Lam and Cheung respectivel y.
The consideration for the above placement was respectively $16,459,699 and $8,229,848.
In January 2003, the SFC commenced an investigation in connection with the suspicious trading in the shares of Shanghai Land, and the defendants were required to attend interviews by the SFC.
A few days before the interview in April 2003, the defendants separately met with solicitor Wong Pui-fai.
Wong told them to account for their dealings in Shanghai Land shares as their own investment. Wong also instructed the defendants to tell the SFC that they had borrowed money from another person for subscribing the share placement.
During the SFC interviews, the defendants did as told by Wong and made false statements to the interviewing officers.
Mo, Chung and Wong, also charged by the ICAC for their respectively roles in the scam, were earlier convicted after trial. Sentencing has been adjourned to January 16, 2006.
The prosecution was today represented by John Marry, counsel on fiat, assisted by ICAC officer Choi Shu-keung.
Lam Kai-sing, 43, and Cheung Pak-yau, 46, were respectively jailed for eight and six months by Judge Alan Wright.
The defendants had earlier pleaded guilty to a total of three counts of knowingly making a false statement in answering questions put to them by the SFC in relation to an investigation in respect of dealings in shares of Shanghai Land.
The offences took place between April and May, 2003.
In sentencing, the judge said the defendants' dishonest act was premeditated.
The judge added that immediate custodial sentences were necessary to bring about a deterrent effect and to safeguard Hong Kong's reputation as an international financial centre.
The court heard that at the time of the offences, Mo Yuk-ping was the general manager of Shanghai Land, while Chung Sau-ling was the secretary of Mo.
The defendants came to know Mo through a common friend, Siu Yim-wah.
In 2000, the defendants were approached by Siu, who requested them to open securities accounts with a number of brokerage firms in their names. The defendants were told that such accounts were for Mo's use, and they agreed to the arrangement.
On September 30, 2002, with the defendants' knowledge, subscription of 20 million and 10 million shares of Shanghai Land, placed from Global Town Limited, the major shareholder of the listed company, were effected in the name of Lam and Cheung respectivel y.
The consideration for the above placement was respectively $16,459,699 and $8,229,848.
In January 2003, the SFC commenced an investigation in connection with the suspicious trading in the shares of Shanghai Land, and the defendants were required to attend interviews by the SFC.
A few days before the interview in April 2003, the defendants separately met with solicitor Wong Pui-fai.
Wong told them to account for their dealings in Shanghai Land shares as their own investment. Wong also instructed the defendants to tell the SFC that they had borrowed money from another person for subscribing the share placement.
During the SFC interviews, the defendants did as told by Wong and made false statements to the interviewing officers.
Mo, Chung and Wong, also charged by the ICAC for their respectively roles in the scam, were earlier convicted after trial. Sentencing has been adjourned to January 16, 2006.
The prosecution was today represented by John Marry, counsel on fiat, assisted by ICAC officer Choi Shu-keung.