Hong Kong court hands out longest jail time for market manipulation
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The judge said that the lengthy sentences meted out were justifiable, as there is a need to safeguard Hong Kong’s reputation as a global financial centre.
PHOTO: BLOOMBERG
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HONG KONG - A Hong Kong court has sentenced two defendants to six years and eight months’ jail for market manipulation, the longest ever handed out for such an offence in the financial hub, according to the presiding judge.
The Hong Kong High Court on July 22 announced the sentencing, after in May convicting three defendants over false trading in listed firm Ching Lee Holdings.
The activities lasted over a period of more than five months in 2016, and resulted in illicit profits of over HK$124 million (S$21.4 million), according to the Securities and Futures Commission (SFC).
The third defendant was sentenced to four years and four months’ jail.
The case marked the first ever jury win for the SFC involving market manipulation.
Usually, the regulator pursues criminal cases involving market misconduct at lower courts with the judge sitting alone, or via civil venue at the Market Misconduct Tribunal presided by a judge and two other members proficient in financial cases.
Judge Douglas Wong said on July 22 that the lengthy sentences meted out were justifiable, as there is a need to send a strong message to the investing public and to safeguard Hong Kong’s reputation as a global financial centre.
The SFC is ramping up its enforcement of market misconduct.
In October, the court will once again hear the alleged insider trading case that brought star hedge fund Segantii Capital Management to a sudden downfall. BLOOMBERG
