Hong Kong SFC Bans Convoy Asset Management Wealth Consultant for Life for Stock Market Manipulation, Paid Colleague 12% to 15% Rebates of Transactions for 10 Clients to Buy Shares to Push Up Prices with Lock-in Period But Suffered Losses as Share Price Collapsed
2nd March 2023 | Hong Kong
Hong Kong SFC Securities & Futures Commission (SFC) has banned Convoy Asset Management ex-Wealth Consultant (Wong Kwun Shing) for life for stock market manipulation, paying colleague 12% to 15% in rebates on transaction values for 10 clients to buy shares to push up prices with lock-in period of 1 month to 3 months (Clients suffered losses as share price collapsed during the lock-in period). The company share was listed on Growth Enterprise Market (GEM) of The Stock Exchange of Hong Kong, and subsequently privatised with the listing withdrawn in 2021. Hong Kong SFC: “From June to July 2016, Wong, a wealth management consultant of CAML, succeeded in persuading X, a colleague, to join the scheme. X proceeded to solicit and arrange for 10 of his clients to buy the shares of Company A from the manipulators involved in the scheme. X’s clients agreed to hold onto the shares for one to three months during which the manipulators would purportedly push up the share price. They also agreed to sell them only with X’s permissions in return for cash rebates of 12% to 15% of the transaction value. However, X’s clients ended up suffering substantial losses as the share price of Company A collapsed before they were allowed to offload their shares. Wong coordinated, arranged and facilitated the transactions through which X’s clients bought the shares from the manipulators. Specifically, on each occasion, Wong would confirm the date, time, size and price with the manipulators in advance and give detailed instructions to X to ensure that his clients’ bid orders would match the manipulators’ ask orders. Wong would then collect the cash rebates from the manipulators and pay X for onward distribution to his clients … … It also appears from the Records that Wong had solicited his own clients to participate in the Scheme and received commission from the manipulators for his role in the Scheme.” The SFC also found that Wong had breached the SFO by knowingly giving false or misleading answers in a material particular to conceal his involvement in the scheme when he attended an interview with the SFC in 2018.” See below for more info.
” Hong Kong SFC Bans Convoy Asset Management Wealth Consultant for Life for Stock Market Manipulation, Paid Colleague 12% to 15% Rebates of Transactions for 10 Clients to Buy Shares to Push Up Prices with Lock-in Period But Suffered Losses as Share Price Collapsed “
Hong Kong SFC Statement:
The SFC considers that Wong is not a fit and proper person to be licensed, as his conduct casts serious doubts on his character, reliability and ability to carry on regulated activities competently, honestly and fairly. In determining the sanction against Wong, the SFC has taken into account all relevant circumstances, including:
- Wong’s misconduct was deliberate, serious and blatantly dishonest and led to significant losses for X’s clients;
- his attempt to conceal his misconduct and mislead the SFC had impeded the SFC’s investigation;
- a strong deterrent message to the industry that the SFC will not tolerate such misconduct; and
- his otherwise clean disciplinary record.
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