The Eastern Magistrates’ Courts on Thursday convicted two former franchisees, Yip Chi Wing and Tsoi Chiu Kwan of fraudulent trading in Forebase International Holdings Limited shares following a prosecution by the Hong Kong Securities and Exchange Commission (SFC).
Yip and Tsoi were authorized representatives of KGI Asia Limited and South China Securities Limited respectively at the material time. Both Yip and Tsoi are currently not licensed by the SFC.
Between December 21, 2015 and October 17, 2016, Yip and Tsoi maintained the turnover of Forebase shares by making manipulative and frequent trades between various securities accounts under their control, resulting in artificially increasing the trading volume of Forebase shares and creating false or misleading display of active transactions.
Yip and Tsoi pleaded guilty to the offence. The Court adjourned the case to May 16, 2024 for sentencing. They were granted bail on the following conditions: (i) not to leave Hong Kong; (ii) surrender all travel documents and (iii) reside at the listed residential address. They were also ordered to pay the SFC’s investigation costs.