Hong Kong authorities have arrested five key members of a suspected ramp-and-dump syndicate following a joint operation by the Securities and Futures Commission (SFC) and the Independent Commission Against Corruption (ICAC). The group is suspected of using market manipulation to achieve illicit gains of $191 million through a complex shareholding network of Hong Kong-listed companies. The five people arrested include qualified accountants and senior executives of some Hong Kong-listed companies. The joint operation involved searches of various premises, including the offices and residences of the arrestees.
The SFC and ICAC had earlier arrested eight other members of the syndicate in November 2022 on suspicion of corruption. Intensive investigations by the SFC and ICAC have also uncovered other criminal offences, including perverting the course of public justice and obstructing the SFC’s investigations.
The authorities have emphasized their determination to combat corruption and maintain Hong Kong’s reputation as an international financial market. Under section 382 of the Securities and Futures Ordinance (SFO) is a criminal offence if a person obstructs the SFC’s statutory duties. The maximum penalty on indictment is two years imprisonment and a fine of $1 million. In addition, under section 101I of the Criminal Procedure Ordinance, those convicted of perverting the course of justice at common law can be sentenced to imprisonment and fined at the court’s discretion. The investigations are ongoing, so no further comments have been made at this stage.
resource: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=23PR19