SFC Prosecutes {X} and Lee Wing Ngai for Disclosure of Interests Offences

3 Mar 2005



The SFC has successfully prosecuted {X} and Mr Lee Wing Ngai for disclosure of interests breaches. Both {X} and Lee were substantial shareholders of Golden 21 Investment Holdings Limited at the material time.

{X} today pleaded guilty to two summonses in relation to his failure to make initial disclosures to Hong Kong Exchanges and Clearing Limited (HKEx) and Golden 21 of his holding of 9,108,000 Golden 21 shares (8.64% of the then total issued share capital of Golden 21) upon commencement of the Securities and Futures Ordinance (SFO) on 1 April 2003, in contravention of sections 310(2)(c), 313(2), 324, 325, 328 of the SFO.

Lee pleaded guilty to eight summonses in relation to his failure to report to HKEx and Golden 21 within the proper period. Lee failed to report to both HKEx and Golden 21 within five days after his acquisition of 3,550,000 Golden 21 shares on 28 October 2002 and his disposal of 1,370,000 and 950,000 Golden 21 shares on 14 November 2002 and 29 November 2002 respectively, in contravention of sections 3, 4, 7 and 15(3) of the Securities (Disclosure of Interests) Ordinance. Lee also failed to report to both HKEx and Golden 21 within three days after his disposal of 4,000,000 Golden 21 shares on 19 June 2003, in contravention of sections 310, 313, 324, 325 and 328 of the SFO (Note 1).

Mr Timothy Casewell, a Magistrate at Eastern Magistracy, fined {X} $4,000 and ordered him to pay investigation costs of $10,821 to the SFC. Lee was fined $22,000 and ordered to pay investigation costs of $17,094 to the SFC.

Ends

Note:

1. Upon the commencement of the SFO on 1 April 2003, the reporting period has been reduced from five days to three business days.



Note: The names of certain individuals in some news releases have been masked because they satisfy certain criteria set out under the Rehabilitation of Offenders Ordinance.


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