The Hong Kong Securities and Exchange Commission (SFC) has banned Mr Lam Ching Chiu and Mr Wong Siu Fung, both former licensed dealers of Nerico Brothers Limited, from re-entering the industry for five years. The ban will run from 6 February 2024 to 5 February 2029 and follows the criminal convictions of Lam and Wong for bribery offences.
Lam and Wong were found guilty in August 2022 in the District Court of bribing the then chief executive officer (CEO) of Hong Kong Financial Engineering Company Limited (HKFECL) in connection with the use of an electronic algorithmic program used for futures trading. The CEO was the creator of the trading program and was responsible for its operation, while Lam and Wong, as well as their clients, used it to invest in futures contracts from late 2014 to early 2015.
Around December 2014 or January 2015, in addition to the service fee charged by HKFECL, the CEO asked Lam and Wong to pay a commission for each profitable transaction conducted as a reward for his staff who assisted in the operation of the trading program.
Lam then paid the CEO between $60,000 and $70,000. Wong also gave a mobile phone and cosmetics worth $12,500 to the CEO in December 2014 at his request, out of a desire to maintain a good relationship with him.
Neither Lam nor Wong had checked whether the above practices were known or accepted by HKFECL before making the payments or gifts to the CEO.
In deciding on the sanctions, the SFC considers that Lam and Wong are not fit and proper persons to be licensed to engage in regulated activities due to their criminal convictions.