Man guilty of $150m fraud over trading of warrants after re-trial
2015-1-9
A former trader of a derivative warrants liquidity provider (LP), charged by the ICAC, was today (Friday) convicted at the District Court of his role in generating over $140 million in illegal profits from the fraudulent trading of derivative warrants after a re-trial.
Raymond Ng Chun-to, 47, was found guilty of four counts of conspiracy to defraud, contrary to Common Law.
Judge Frankie Yiu Fun-che adjourned the case until January 30 this year for sentencing Ng and handling an application for an order to confiscate his restrained properties. Ng was remanded in custody of the Correctional Services Department.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, Calyon Financial Products (Guernsey) Limited, Citigroup Global Markets Holdings Incorporation, Standard Bank PLC and Dresdner Bank AG were derivative warrants issuers in Hong Kong.
Respectively, the four issuers appointed CLSA Limited, Citigroup Global Markets Asia Limited, Standard Securities Asia Limited and Taifook Securities Company Limited as their LPs.
In late 2005, Ng recruited a number of persons to take part in a scheme to push derivative warrants issued by the four issuers at a base on the Mainland.
The court heard that between September 2005 and May 2008, Ng conspired with those persons to defraud those LPs as well as such companies, firms and persons as might be induced to trade in those derivative warrants.
They dishonestly caused employees based in Hong Kong of the four issuers to render favourable prices to be quoted to people connected with Ng for those derivative warrants, and created a false or misleading appearance of active trading.
They subsequently offered secret profits to those employees as rewards for taking part in the fraudulent trading of those derivative warrants. The illegal profits generated from the scam amounted to over $140 million, the court was told.
In April 2010, Ng was found guilty at the District Court of four counts of conspiracy to defraud in the fraudulent trading of derivative warrants.
Ng subsequently lodged an appeal with the Court of Appeal (CA). In August 2013, the CA quashed his convictions and ordered a re-trial against Ng in respect of his four counts of conspiracy to defraud.
The prosecution was today represented by prosecuting counsel Neil Mitchell, assisted by ICAC officer Blanche Yiu.
Raymond Ng Chun-to, 47, was found guilty of four counts of conspiracy to defraud, contrary to Common Law.
Judge Frankie Yiu Fun-che adjourned the case until January 30 this year for sentencing Ng and handling an application for an order to confiscate his restrained properties. Ng was remanded in custody of the Correctional Services Department.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, Calyon Financial Products (Guernsey) Limited, Citigroup Global Markets Holdings Incorporation, Standard Bank PLC and Dresdner Bank AG were derivative warrants issuers in Hong Kong.
Respectively, the four issuers appointed CLSA Limited, Citigroup Global Markets Asia Limited, Standard Securities Asia Limited and Taifook Securities Company Limited as their LPs.
In late 2005, Ng recruited a number of persons to take part in a scheme to push derivative warrants issued by the four issuers at a base on the Mainland.
The court heard that between September 2005 and May 2008, Ng conspired with those persons to defraud those LPs as well as such companies, firms and persons as might be induced to trade in those derivative warrants.
They dishonestly caused employees based in Hong Kong of the four issuers to render favourable prices to be quoted to people connected with Ng for those derivative warrants, and created a false or misleading appearance of active trading.
They subsequently offered secret profits to those employees as rewards for taking part in the fraudulent trading of those derivative warrants. The illegal profits generated from the scam amounted to over $140 million, the court was told.
In April 2010, Ng was found guilty at the District Court of four counts of conspiracy to defraud in the fraudulent trading of derivative warrants.
Ng subsequently lodged an appeal with the Court of Appeal (CA). In August 2013, the CA quashed his convictions and ordered a re-trial against Ng in respect of his four counts of conspiracy to defraud.
The prosecution was today represented by prosecuting counsel Neil Mitchell, assisted by ICAC officer Blanche Yiu.