ICAC arrests 29 for alleged bribery over trading of derivative warrants
2008-5-29
The ICAC has arrested 29 persons, including a director of an investment company suspected to be the mastermind, for alleged bribery in relation to suspected fraudulent trading of derivative warrants.
Also arrested in an operation codenamed “ Night Sun ”, which commenced yesterday (May 28), were four traders of four derivative warrant issuers, six securities brokers, and 18 associates of the investment company’s director.
The ICAC commenced an investigation after receiving a corruption complaint.
Enquiries revealed that the investment company’s director had allegedly offered bribes to the arrested traders of the derivative warrant issuers.
It was alleged that the arrested traders had assisted the investment company’s director by quoting favourable bid and ask prices to give him preference in the transactions of the derivative warrants concerned.
It was believed that the arrested securities brokers had assisted in the scam.
During the operation, ICAC officers seized suspected bribe money of over $2 million.
Enquiries revealed that tens of warrants were allegedly involved in the trading daily, while the volume of daily trading was estimated to range from over $10 million to more than $100 million.
The profits allegedly generated from the scam in the past two years were estimated to be more than $100 million.
ICAC enquiries are continuing.
Also arrested in an operation codenamed “ Night Sun ”, which commenced yesterday (May 28), were four traders of four derivative warrant issuers, six securities brokers, and 18 associates of the investment company’s director.
The ICAC commenced an investigation after receiving a corruption complaint.
Enquiries revealed that the investment company’s director had allegedly offered bribes to the arrested traders of the derivative warrant issuers.
It was alleged that the arrested traders had assisted the investment company’s director by quoting favourable bid and ask prices to give him preference in the transactions of the derivative warrants concerned.
It was believed that the arrested securities brokers had assisted in the scam.
During the operation, ICAC officers seized suspected bribe money of over $2 million.
Enquiries revealed that tens of warrants were allegedly involved in the trading daily, while the volume of daily trading was estimated to range from over $10 million to more than $100 million.
The profits allegedly generated from the scam in the past two years were estimated to be more than $100 million.
ICAC enquiries are continuing.