Joint press release: ICAC and SFC joint operation against suspected market manipulation and corrupt practices leads to arrest of two former senior executives of listed company
2025-7-25
The Independent Commission Against Corruption (ICAC) and the Securities and Futures Commission (SFC) on Wednesday (July 23) conducted a joint operation, codenamed “Leverage”, targeting a sophisticated syndicate suspected of manipulating the shares of a listed company and engaging in corrupt activities (Notes 1 & 2).
During the joint operation, the ICAC and the SFC searched 14 locations, including the offices of the listed company and SFC-licensed brokers. The ICAC arrested a former chairman and a former executive director of the listed company under the Prevention of Bribery Ordinance (Note 3).
The syndicate allegedly conspired to use documents containing false information (including internal records and public announcements of the listed company), to falsely claim that the listed company had entered into a share subscription agreement and formed a joint venture with a Mainland company, involving amounts of over HK$20 million. Additionally, the syndicate allegedly manipulated and/or created false market appearance for the shares of the listed company through multiple nominee accounts.
Furthermore, the former executive director of the listed company, who was a responsible officer and director of a broker during the material time, was suspected of accepting advantages from the former chairman of the listed company and misappropriating shares owned by a client of the broker worth approximately HK$9 million.
The joint operation was the result of the SFC’s initial detection of suspicious trading activities suggesting potential market misconduct and corruption. The case was subsequently referred to the ICAC for investigation into suspected corruption, while the SFC focused on market misconduct under the Securities and Futures Ordinance.
No further comments will be made as the investigation remains ongoing.
Notes:
1. Trading in shares of the listed company had been suspended since March 2025, following a court order mandating its liquidation.
2. The joint operation was conducted under the arrangement of the Memorandum of Understanding signed between the ICAC and the SFC. For further details, please visit the websites of the ICAC and the SFC.
3. The individuals involved are suspected of breaching the provisions under the Prevention of Bribery Ordinance, including offering advantages to agents and agents accepting advantages (i.e., offering and acceptance of bribes), as well as agents using false documents with the intent to deceive their principals. Additionally, they are also suspected of committing offences under the Organized and Serious Crimes Ordinance, specifically handling property known or believed to represent proceeds of indictable offences, and under the Securities and Futures Ordinance involving market manipulation and other forms of market misconduct.
During the joint operation, the ICAC and the SFC searched 14 locations, including the offices of the listed company and SFC-licensed brokers. The ICAC arrested a former chairman and a former executive director of the listed company under the Prevention of Bribery Ordinance (Note 3).
The syndicate allegedly conspired to use documents containing false information (including internal records and public announcements of the listed company), to falsely claim that the listed company had entered into a share subscription agreement and formed a joint venture with a Mainland company, involving amounts of over HK$20 million. Additionally, the syndicate allegedly manipulated and/or created false market appearance for the shares of the listed company through multiple nominee accounts.
Furthermore, the former executive director of the listed company, who was a responsible officer and director of a broker during the material time, was suspected of accepting advantages from the former chairman of the listed company and misappropriating shares owned by a client of the broker worth approximately HK$9 million.
The joint operation was the result of the SFC’s initial detection of suspicious trading activities suggesting potential market misconduct and corruption. The case was subsequently referred to the ICAC for investigation into suspected corruption, while the SFC focused on market misconduct under the Securities and Futures Ordinance.
No further comments will be made as the investigation remains ongoing.
Notes:
1. Trading in shares of the listed company had been suspended since March 2025, following a court order mandating its liquidation.
2. The joint operation was conducted under the arrangement of the Memorandum of Understanding signed between the ICAC and the SFC. For further details, please visit the websites of the ICAC and the SFC.
3. The individuals involved are suspected of breaching the provisions under the Prevention of Bribery Ordinance, including offering advantages to agents and agents accepting advantages (i.e., offering and acceptance of bribes), as well as agents using false documents with the intent to deceive their principals. Additionally, they are also suspected of committing offences under the Organized and Serious Crimes Ordinance, specifically handling property known or believed to represent proceeds of indictable offences, and under the Securities and Futures Ordinance involving market manipulation and other forms of market misconduct.