Trio charged by ICAC with conspiracy to commit MIPO for using confidential information to make $11m investment profits
2024-11-29
A then manager of the Securities and Futures Commission (SFC) and two personal friends of him were charged by the ICAC today (November 29) with conspiracy to commit misconduct in public office (MIPO). It is alleged that the then SFC manager had divulged confidential information in relation to a rights issue exercise of a real estate investment trust to the two personal friends for making investment profits totalling over $11 million.
Kenneth Leung Po-hin, 30, then Manager of the SFC posted to the Investment Products Division (IPD); and Lai Lit-wai, 34, Registered Nurse of the Hospital Authority (HA), jointly face one count of conspiracy to commit MIPO, contrary to the Common Law and section 159A of the Crimes Ordinance.
Leung and Cheung Tsz-kin, 35, Senior Government Counsel of the Department of Justice (DoJ), jointly face another count of conspiracy to commit MIPO.
The trio were released on ICAC bail, pending their appearance at the Kwun Tong Magistrates’ Courts tomorrow (November 30) for mention.
The case stemmed from an internal investigation of the SFC which revealed the suspected misconduct of Leung. The case was subsequently referred to the ICAC for joint criminal investigation.
Leung was a manager of the IPD of SFC at the material time. The IPD was responsible for performing regulatory function on investment products offered to the public. Its staff members could have access to stock price sensitive confidential information but they were not allowed to divulge such confidential information to unauthorised parties.
At the material time, Link Real Estate Investment Trust (Link REIT) intended to conduct a rights issue exercise by late March 2023, and submitted the relevant stock price sensitive confidential information, including the timeline of the exercise and the subscription price, to a team of the IPD of SFC. Leung was posted to the IPD but he was not a member of the team, nor was he responsible for handling any matter in relation to Link REIT.
The charges allege that between January 30 and February 15, 2023, Leung, in his public office at the SFC, acquired stock price sensitive confidential information in relation to the rights issue exercise of Link REIT; secretly divulged the confidential information to Lai and Cheung respectively; and facilitated the duo to use the confidential information in various derivatives trading transactions.
The ICAC investigation revealed that Lai and Cheung used the confidential information provided by Leung to buy and sell put options and made profits amounted to nearly $4.5 million and about $7 million respectively. Lai and Cheung subsequently shared part of the profits with Leung.
The SFC, DoJ and HA rendered full assistance to the ICAC during its investigation into the case.
The ICAC attaches grave importance to upholding the integrity of Hong Kong’s financial market and has zero tolerance against individuals undermining the fair operation of the market. When it comes to corrupt practices and misconduct involving any public officers, the ICAC will take resolute enforcement actions to uphold justice.
Kenneth Leung Po-hin, 30, then Manager of the SFC posted to the Investment Products Division (IPD); and Lai Lit-wai, 34, Registered Nurse of the Hospital Authority (HA), jointly face one count of conspiracy to commit MIPO, contrary to the Common Law and section 159A of the Crimes Ordinance.
Leung and Cheung Tsz-kin, 35, Senior Government Counsel of the Department of Justice (DoJ), jointly face another count of conspiracy to commit MIPO.
The trio were released on ICAC bail, pending their appearance at the Kwun Tong Magistrates’ Courts tomorrow (November 30) for mention.
The case stemmed from an internal investigation of the SFC which revealed the suspected misconduct of Leung. The case was subsequently referred to the ICAC for joint criminal investigation.
Leung was a manager of the IPD of SFC at the material time. The IPD was responsible for performing regulatory function on investment products offered to the public. Its staff members could have access to stock price sensitive confidential information but they were not allowed to divulge such confidential information to unauthorised parties.
At the material time, Link Real Estate Investment Trust (Link REIT) intended to conduct a rights issue exercise by late March 2023, and submitted the relevant stock price sensitive confidential information, including the timeline of the exercise and the subscription price, to a team of the IPD of SFC. Leung was posted to the IPD but he was not a member of the team, nor was he responsible for handling any matter in relation to Link REIT.
The charges allege that between January 30 and February 15, 2023, Leung, in his public office at the SFC, acquired stock price sensitive confidential information in relation to the rights issue exercise of Link REIT; secretly divulged the confidential information to Lai and Cheung respectively; and facilitated the duo to use the confidential information in various derivatives trading transactions.
The ICAC investigation revealed that Lai and Cheung used the confidential information provided by Leung to buy and sell put options and made profits amounted to nearly $4.5 million and about $7 million respectively. Lai and Cheung subsequently shared part of the profits with Leung.
The SFC, DoJ and HA rendered full assistance to the ICAC during its investigation into the case.
The ICAC attaches grave importance to upholding the integrity of Hong Kong’s financial market and has zero tolerance against individuals undermining the fair operation of the market. When it comes to corrupt practices and misconduct involving any public officers, the ICAC will take resolute enforcement actions to uphold justice.