SFC charges four with conspiracy to manipulate market

10 Jul 2008



The SFC has commenced criminal proceedings against four individuals for conspiring to manipulate the market to trade shares of Asia Standard Hotel Group Limited (ASH Group), a company listed on the Stock Exchange of Hong Kong.

The SFC alleges that from August 1 to September 5, 2005, Mr Chan Chin Yuen, Miss Elaine Au Yeung Man Chun, Mr Chan Chin Tat, and Mr Chui Siu Fung, conspired to create a false or misleading impression of the market for ASH Group shares, in breach of section 295 of the Securities and Futures Ordinance. More specifically, the SFC alleges:


The defendants appeared today at the Eastern Magistracy. No plea was taken and the case was adjourned for four weeks until 7 August 2008 to enable an application to be made by the Department of Justice to transfer the case to the District Court.

The case will then be the second indictable prosecution for an offence under the Securities and Futures Ordinance (SFO) (Note 1).

The SFC also applied for bail conditions to be imposed on the four defendants, given the seriousness of the case. The Court granted Chan Chin Yuen court bail of $200,000. He is required to report to the Lok Ma Chau police station on the last day of each month. The other defendants were granted court bail of $100,000 each.

Simultaneously, the SFC has also commenced criminal proceedings against Chan Chin Tat and Chui Siu Fung for failing to answer questions as required under the SFO and without reasonable excuse during the SFC’s investigation into the trading of ASH Group shares.

End

Note:

1. The first indictable prosecution under the SFO was commenced in February 2008 following an SFC investigation (see SFC media releases dated 28 February 2008 and 17 March 2008).




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