The East Magistrates’ Court sentenced two former franchisees, Mr Yip Chi Wing and Mr Tsoi Chiu Kwan, to three months in prison each after they were convicted of falsely trading the shares of Forebase International Holdings Limited.
In sentencing, Judge Mr Jeffrey Sze Cho Yiu said Yip and Tsoi played a significant role in the false trading of Forebase shares in their capacity as licensed stockbrokers.
The offence, which took place over a 10-month period in 2015 and 2016, created a false or misleading appearance of active trading in Forebase shares.
Having regard to the serious nature of their offense and the need to protect the investing public, Mr Sze concluded that an immediate custodial sentence was appropriate in the circumstances of the case.
“The court’s decision sends a clear message to perpetrators of false trading about the legal consequences for damaging market integrity and undermining the trust and confidence of the investing public,” said Mr Christopher Wilson, the Commission’s Executive Director of Enforcement. Capital Market and Futures (SFC). .
“The SFC will not tolerate licensed individuals abusing their position to engage in market misconduct and we will not hesitate to take action against them because their offenses are serious. Licensees should always bear in mind that they are expected to uphold high standards of conduct and act in the best interests of clients and the integrity of the market,” Mr Wilson added.