Hong Kong’s SFC Committee (SFC) has revoked the license of NERICO BROTHERS LIMITED (NBL) to facilitate the abuse of customer assets and other misconduct.
The SFC has also banned NBL manager Jerff Lee Cheuk Fung by practicing all regulated life activities.
The Regulatory Authority found that, between June 2020 and January 2021, the NBL abused the funds of a customer totaling over $ 68 million in six times to register with two divided portfolios of a fund for its own account. The NBL maintained the profits that came from subscriptions to itself and returned only the subscription managers to the client’s NBL account until June 2021.
In particular, NBL’s actions were done without the knowledge, teaching, authorization or consent of the client and in violation of the explicit terms of the customer agreement.
The SFC also found that the NBL has knowingly facilitated a plan orchestrated by Neo Ng YU and its associated faces and entities, resulting in the abuse of about $ 154 million of the same US since January 2021.
Specifically, from January and August 2021, the NBL transferred almost all customer funds to one of the divided portfolios of the Fund (sub-funding) for the alleged acquisition of liquidity units from customer sub-funding.
However, sub-funding is not issued or has any “liquidity units”, as opposed to the NBL requirement. A significant part of the customer’s funds were subsequently used or dissolved in NEW -NG and its corporate vehicles.
To conceal and conceal the embezzlement, the NBL was either manufactured or used or made of transaction documents and account statements as part of the regime.
During the SFC survey and research, the NBL presented two contradictory narratives and was based on two groups of conflicting documents to explain the use and site of abusive customers. While the NBL initially claimed that customer funds were transferred to sub-funding to obtain “liquidity units” issued by sub-funding, later changed his explanation and claimed that the funds were used to obtain from the Cayman’s different cash supplies.
SFC’s research further revealed that both narratives were false. Customer funds were not used to obtain any “liquidity units” and actually abuse. In addition, both sets of documents based on the NBL to support these false narratives and conceal the embezzlement were constructed.
The regulator concluded that the NBL misconduct was directly due to Lee’s actions, which was the director behind the abuse of the NBL by customer funds and facilitating their embezzlement by the neo -fascist, with whom he had close ties.
Lee also personally violated the SFO, giving knowingly false or misleading answers and explanations to his interviews with SFC.
During the decision of disciplinary sanctions against NBL and Lee, the SFC took into account that their behavior was intense and serious, their behavior caused significant losses to the customer and
Everyone had one otherwise clean disciplinary file.