Hong Kong Court Charged Suspected Core Members of Large Ramp & Dump Syndicate for Market Manipulation, 4 Charged in June 2023 for Securities & Illegal Short-Selling Fraud in Suspected Ramp & Dump Schemes and Money Laundering
4th August 2023 | Hong Kong
A Hong Kong court has charged suspected core members of a large Ramp & Dump syndicate (Stevens Yip Chi Fai & So Lung Ying) for market manipulation, joining 4 individuals charged in June 2023 for securities & illegal short-selling fraud in suspected ramp & dump schemes and money laundering. Hong Kong SFC (Securities & Futures Commission): “Mr Stevens Yip Chi Fai and Ms So Lung Ying, both being suspected core members of a large-scale and sophisticated syndicate suspected of ramp-and-dump market manipulation, were charged today at the Eastern Magistracy following an extensive investigation of the Securities and Futures Commission. They were charged with the offence of conspiracy to employ a scheme with intent to defraud or deceive in transactions involving securities contrary to section 300 of the Securities and Futures Ordinance and section 159A and 159C of the Crimes Ordinance. No plea was taken. The case was adjourned to 2 November 2023 … … No further comment will be made now that legal proceedings have commenced.” See below for Hong Kong SFC statement:
“ Hong Kong Court Charged Suspected Core Members of Large Ramp & Dump Syndicate for Market Manipulation, 4 Charged in June 2023 for Securities & Illegal Short-Selling Fraud in Suspected Ramp & Dump Schemes and Money Laundering “
A social media ramp-and-dump scam is a form of stock market manipulation where fraudsters use different means to “ramp” up the share price of a listed company and then induce investors via social media platforms to purchase the shares they “dump” at an artificially high price.
Hong Kong Court Charged Suspected Core Members of Large Ramp & Dump Syndicate for Market Manipulation
- Suspected core members of sophisticated syndicate charged in ramp-and-dump case
3rd August 2023 – Mr Stevens Yip Chi Fai and Ms So Lung Ying, both being suspected core members of a large-scale and sophisticated syndicate suspected of ramp-and-dump market manipulation, were charged today at the Eastern Magistracy following an extensive investigation of the Securities and Futures Commission (Note 1).
They were charged with the offence of conspiracy to employ a scheme with intent to defraud or deceive in transactions involving securities contrary to section 300 of the Securities and Futures Ordinance and section 159A and 159C of the Crimes Ordinance.
No plea was taken. The case was adjourned to 2 November 2023.
The Court granted bail to Yip and So on these conditions: (i) not to leave Hong Kong; (ii) surrender all travel documents; (iii) report to police station on regular basis; (iv) cash bail $500,000 and $50,000 respectively; (v) reside at the reported residential address and inform Police within 24 hours of any change of residential address.
No further comment will be made now that legal proceedings have commenced.
Hong Kong Court Charged 4 Individuals for Securities & Illegal Short-Selling Fraud in Suspected Ramp & Dump Schemes and Money Laundering
24th June 2023 – A Hong Kong court (Eastern Magistracy) has charged 4 individuals for securities & illegal short-selling fraud in suspected ramp & dump schemes and money laundering. Hong Kong SFC (23/6/23): “4 suspects appeared at the Eastern Magistracy today charged with offences of fraud with alternative charge of illegal short selling following an earlier joint operation of the Securities and Futures Commission (SFC) and the Police against fraudulent activities in securities transactions and illegal short selling. The SFC discovered the suspicious trading activities during an intensive investigation of suspected ramp-and-dump activities. While investigating market misconduct offences under the SFO, the SFC also referred the case which involves suspected money laundering and other fraudulent activities to the Police. No plea was taken and the case was adjourned to 18 August 2023. The case will be transferred to District Court for trial.” The suspects were released on cash bail ranging from HKD 40,000 to HKD 150,000. Earlier in 2023 May, the Hong Kong Securities and Futures Commission (SFC) has increased bail conditions for an individual (Miss Tse Yiu Chung, formerly known as Tse Man Kwan) involved in Ramp & Dump Scheme (stocks) for breaching bail conditions including providing incorrect residential address and missing routine reporting to police station. The bail is increased from HKD 1 million to HKD 1.5 million ($127,000 to $191,000), daily police reporting instead of weekly reporting, and curfew at new residential address from 12 am to 6 am. More info below.
Hong Kong SFC Increased Bail Conditions for Ramp & Dump Scheme Individual for Breaching Bail Conditions Including Incorrect Residential Address & Missed Routine Reporting to Police Station, Bail Increased from HKD 1 Million to HKD 1.5 Million, Daily Police Reporting Instead of Weekly & Curfew from 12 am to 6 am
19th May 2023 – The Hong Kong Securities and Futures Commission (SFC) has increased bail conditions for an individual (Miss Tse Yiu Chung, formerly known as Tse Man Kwan) involved in Ramp & Dump Scheme (stocks) for breaching bail conditions including providing incorrect residential address and missing routine reporting to police station. The bail is increased from HKD 1 million to HKD 1.5 million ($127,000 to $191,000), daily police reporting instead of weekly reporting, and curfew at new residential address from 12 am to 6 am. More info below.
Hong Kong SFC Increased Bail Conditions for Ramp & Dump Scheme Individual for Breaching Bail Conditions Including Incorrect Residential Address & Missed Routine Reporting to Police Station
Ramp-and-dump suspect arrested for breaches of court bail conditions
18th May 2023 – The Eastern Magistracy has imposed more stringent bail conditions on Ms Tse Yiu Chung (formerly known as Tse Man Kwan), who is a defendant charged with offences relating to certain “ramp-and-dump” schemes, after the Securities and Futures Commission (SFC) discovered that she does not reside at her reported residential address during the investigation of another case.
Tse was arrested by the Police for breaching the bail conditions imposed on her by the Court. She was brought to the Eastern Magistracy on 17 May 2023. At the hearing, the Court was told that Tse had reported an incorrect residential address to the Court and failed to report to the police station on several occasions, in breach of her various bail conditions imposed by the Court at the last mention hearing on 4 April 2023 (Note 1).
The Court imposed stricter bail conditions on Tse: (i) cash bail was increased from $1 million to $1.5 million; (ii) requirement to report to police station made daily instead of weekly; and (iii) comply with curfew order to stay at the new reported residential address from 12 am to 6 am.
So far a total of 24 individuals were charged, following a series of extensive investigations by the SFC and the Police into suspected ramp-and-dump stock investment schemes and suspected money laundering activities. The case was adjourned to 4 October 2023.
The SFC’s Executive Director of Enforcement, Mr Christopher Wilson, said: “We will continue our close collaboration with the Police in combating financial crimes, including “ramp-and-dump” market manipulation. To this end, we also remind investors to stay vigilant when they are solicited by unknown individuals through social media, and be wary of fraudsters impersonating well-known market commentators and tricking investors into trading thinly-traded listed stocks with dubious stock tips”.
Hong Kong Court Charged 2 Individuals for Money-Laundering, Total 24 People Charged for Ramp & Dump Market Manipulation Scheme and $82 Million Assets Frozen in Securities Trading Account
22nd April 2023 – A Hong Kong court has charged 2 individuals (Wong Yin Ling and Tse Yi Kwan) for money-laundering offences, with a total of 24 people charged for Ramp & Dump market manipulation scheme and $82 million assets frozen in securities trading account. Hong Kong SFC: “2 additional suspects appeared at the Eastern Magistracy today and were charged with money laundering related offences, following an earlier joint operation between the Securities and Futures Commission (SFC) and the Police against a large-scale and sophisticated syndicate suspected of operating “ramp-and-dump” market manipulation. No plea was taken from Ms Wong Yin Ling and Ms Tse Yi Kwan, who are family members of another suspect of the syndicate, Ms Tse Yiu Chung, who was charged earlier. The Court adjourned the case to 4 October 2023 and granted bail to Wong and Tse on these conditions: (i) not to leave Hong Kong; (ii) surrender all travel documents; (iii) report to police station on regular basis; and (iv) cash bail of $800,000. The latest legal proceedings bring the total number of people charged to 24, following a series of extensive investigations by the SFC and the Police into suspected “ramp-and-dump” stock investment schemes and suspected money laundering activities.”
Total 24 People Charged for Ramp & Dump Market Manipulation Scheme and $82 Million Assets Frozen in Securities Trading Account
4th April 2023 – 6 additional suspects – including key members and an alleged ringleader – were charged with various criminal offences following an earlier joint operation of the Securities and Futures Commission (SFC) and the Police against a large-scale and sophisticated syndicate suspected of operating “ramp-and-dump” market manipulation.
These suspects appeared at the Eastern Magistracy today. Four of them were charged with the offences of conspiracy to defraud and conspiracy to employ a scheme with intent to defraud or deceive in transactions involving securities under common law, section 300 of the Securities and Futures Ordinance and section 159A and 159C of the Crimes Ordinance and the rest were charged with money laundering related offences.
No plea was taken and the case was adjourned to 4 October 2023. The Court granted bail to them on these conditions: (i) not to leave Hong Kong; (ii) surrender all travel documents; (iii) report to police station on regular basis; and (iv) cash bail ranging from $500,000 to $1 million.
The SFC’s Executive Director of Enforcement, Mr Christopher Wilson, said: “We will see to it that suspects of market misconduct are brought to justice and the integrity of Hong Kong’s financial market and the investing public are protected. To this end, we will not hesitate to deploy legal and regulatory tools at our disposal and continue our collaboration with the Police and other law enforcement agencies in combating financial crimes.”
The additional number of suspects charged bring to 20 the total number of people charged following a series of extensive investigations by the SFC and the Police on suspected “ramp-and-dump” stock investment schemes and suspected money laundering activities. In September and November last year, a total of 14 suspects, including the alleged ringleaders and key members of other “ramp-and-dump” syndicates, were charged with various criminal offences. In addition, the SFC has frozen the assets held in the securities trading accounts by members of these alleged syndicates at a total value to the tune of HKD 650 million $82 million).
The Court today was informed that Ms Tse Yiu Chung (previously known as Tse Man Kwan), Mr Wu Hon Cheung, Ms Ng Ka Man and Mr Cheung Chak Ho are alleged to have conspired with a number of individuals, including those who had already been charged last September, to use multiple nominee accounts to corner the shares of two target stocks and drive up the prices of these stocks between September 2018 and April 2019.
The syndicate is alleged to have induced investors to purchase shares in these stocks through social media platforms to facilitate their disposal of shares at a profit. The prices of these stocks collapsed in November 2018 and April 2019 once the demand was exhausted. No further comment will be made as legal proceedings have commenced.
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