Shanghai Land's ex-general manager and two others guilty of market manipulation and perverting justice
2005-12-8
Three persons, including the former general manager of publicly listed Shanghai Land Holdings Limited (Shanghai Land), have been convicted at District Court of their respective roles in manipulating the market in trading in the shares of the listed company, and frustrating an investigation by the Securities and Futures Commission (SFC) in relation to the market manipulation.
Mo Yuk-ping, 43, former general manager of Shanghai Land; and Chung Sau-ling, 32, personal assistant to Mo, were found guilty on a total of two counts of conspiracy to defraud.
Mo, Chung, together with co-defendant Wong Pui-fai, 44, a practicing solicitor, were also found guilty on a total of three counts of conspiracy to pervert the course of public justice.
Judge Alan Wright adjourned the case until January 16, 2006 for mitigation and sentence. The defendants were remanded in the custody of the Correctional Services Department.
The court heard that between June 2002 and May 2003, a total of 43 accounts were opened at various brokerage firms under the instruction of Mo.
These accounts, opened in the names of friends and relatives of Mo and other associates, were used to trade in Shanghai Land shares on a daily basis to create a false appearance of active trading, and to keep the share price at $0.58 after March 1, 2003.
The first conspiracy charge stated that Mo, Chung, and two other co-defendants –'96 Lam Kai-sing and Cheung Pak-yau –'96 had conspired together and with Joanne Lui Ching-yee, Siu Yim-wah and Chau Ching-ngai to defraud such companies, firms and persons as might be induced to trade in shares in Shanghai Land.
The court heard that they had dishonestly created a false or misleading appearance of active trading in Shanghai Land on the Stock Exchange of Hong Kong Limited (Stock Exchange) during the above period.
Mo was further convicted of conspiring with Lui, Chau and other persons to defraud the Bank of China (Hong Kong) Limited (BOC), by dishonestly creating a false or misleading appearance with respect to the price for dealing in shares in Shanghai Land on the Stock Exchange, for the purpose of maintaining the collateral value of the Shanghai Land shares Chau pledged with BOC for a loan of HK$2,156 million in the taking over of imGO Limited (later renamed as Shanghai Land).
The defendants were also found guilty on a total of three counts of conspiracy to pervert the course of public justice between April and May 2003, in relation to SFC's inquiry into the above market manipulation.
One of these charges stated that Mo, Chung, Lam and Wong had conspired together with Lui in making false representation to the SFC that trades in Shanghai Land shares in the name of Lam were effected by him.
The second perverting charge stated that Chung, Cheung and Wong had conspired with Lui to make false statements to the SFC in relation to the trades in the name of Cheung by similar means.
Chung was further found guilty of conspiring with Lui and Siu to pervert the course of justice in relation to SFC's inquiry into the trades of Shanghai Land shares in the name of Siu.
Earlier on, Lam and Cheung had pleaded guilty to charges of knowingly making a false statement to SFC in relation to the latter's investigation in respect of dealings in shares of Shanghai Land. Sentencing has been adjourned to next Friday (December 16, 2005).
SFC had rendered full assistance to the ICAC during its investigation. Expert evidence from a SFC officer was fully accepted by the court.
The prosecution was today represented by John Marray, counsel on fiat, and assisted by ICAC officer Kenny Wong.
Mo Yuk-ping, 43, former general manager of Shanghai Land; and Chung Sau-ling, 32, personal assistant to Mo, were found guilty on a total of two counts of conspiracy to defraud.
Mo, Chung, together with co-defendant Wong Pui-fai, 44, a practicing solicitor, were also found guilty on a total of three counts of conspiracy to pervert the course of public justice.
Judge Alan Wright adjourned the case until January 16, 2006 for mitigation and sentence. The defendants were remanded in the custody of the Correctional Services Department.
The court heard that between June 2002 and May 2003, a total of 43 accounts were opened at various brokerage firms under the instruction of Mo.
These accounts, opened in the names of friends and relatives of Mo and other associates, were used to trade in Shanghai Land shares on a daily basis to create a false appearance of active trading, and to keep the share price at $0.58 after March 1, 2003.
The first conspiracy charge stated that Mo, Chung, and two other co-defendants –'96 Lam Kai-sing and Cheung Pak-yau –'96 had conspired together and with Joanne Lui Ching-yee, Siu Yim-wah and Chau Ching-ngai to defraud such companies, firms and persons as might be induced to trade in shares in Shanghai Land.
The court heard that they had dishonestly created a false or misleading appearance of active trading in Shanghai Land on the Stock Exchange of Hong Kong Limited (Stock Exchange) during the above period.
Mo was further convicted of conspiring with Lui, Chau and other persons to defraud the Bank of China (Hong Kong) Limited (BOC), by dishonestly creating a false or misleading appearance with respect to the price for dealing in shares in Shanghai Land on the Stock Exchange, for the purpose of maintaining the collateral value of the Shanghai Land shares Chau pledged with BOC for a loan of HK$2,156 million in the taking over of imGO Limited (later renamed as Shanghai Land).
The defendants were also found guilty on a total of three counts of conspiracy to pervert the course of public justice between April and May 2003, in relation to SFC's inquiry into the above market manipulation.
One of these charges stated that Mo, Chung, Lam and Wong had conspired together with Lui in making false representation to the SFC that trades in Shanghai Land shares in the name of Lam were effected by him.
The second perverting charge stated that Chung, Cheung and Wong had conspired with Lui to make false statements to the SFC in relation to the trades in the name of Cheung by similar means.
Chung was further found guilty of conspiring with Lui and Siu to pervert the course of justice in relation to SFC's inquiry into the trades of Shanghai Land shares in the name of Siu.
Earlier on, Lam and Cheung had pleaded guilty to charges of knowingly making a false statement to SFC in relation to the latter's investigation in respect of dealings in shares of Shanghai Land. Sentencing has been adjourned to next Friday (December 16, 2005).
SFC had rendered full assistance to the ICAC during its investigation. Expert evidence from a SFC officer was fully accepted by the court.
The prosecution was today represented by John Marray, counsel on fiat, and assisted by ICAC officer Kenny Wong.