Hong Kong SFC Issues 5-Year Ban to Ex-Representatives of Brokerage Nerico Brothers Lam Ching Chiu & Wong Siu Fung after Criminal Conviction of Bribery, Paid Total of $10,000 to CEO & Staff of Hong Kong Financial Engineering for Each Profitable Transaction in Addition to Standard Service Fee for Algorithmic Futures Trading Program, Lam Ching Chiu Sentenced to 1 Year Jail with 2 Years Suspension & Wong Siu Fung Sentenced to 9 Months Jail with 2 Years Suspension
7th February 2024 | Hong Kong
The Hong Kong Securities and Futures Commission (SFC) has issued a 5-year ban to ex-representatives of brokerage Nerico Brothers Lam Ching Chiu & Wong Siu Fung after their criminal conviction of bribery, paying a total of $10,000 to CEO & staff of Hong Kong Financial Engineering for each profitable transaction in addition to standard service fee for algorithmic futures trading program. Lam Ching Chiu had been sentenced to 1 year jail with 2 years suspension & Wong Siu Fung had been sentenced to 9 months jail with 2 years suspension. Hong Kong SFC: “Lam and Wong were found guilty in August 2022 at the District Court of paying the then chief executive officer (CEO) of Hong Kong Financial Engineering Company Limited (HKFECL) bribes in relation to utilising a computerised algorithmic programme used for futures trading. The CEO was the developer of the trading programme and was responsible for its operation, while Lam and Wong, as well as their clients, used it to invest in futures contracts from late 2014 to early 2015 (Note 4). Around December 2014 or January 2015, in addition to the service fee charged by HKFECL, the CEO asked Lam and Wong to pay a commission for each profitable transaction conducted as a reward for his staff who assisted with the operation of the trading programme. Lam subsequently paid the CEO between $60,000 and $70,000 (HKD). Wong also gave a mobile phone and cosmetic products worth $12,500 (HKD) to the CEO in December 2014 at his request, out of a desire to maintain a good relationship with him. Neither Lam nor Wong had checked whether the above practices were known or acceptable to HKFECL before they made the payments or gifts to the CEO.”
“ Hong Kong SFC Issues 5-Year Ban to Ex-Representatives of Brokerage Nerico Brothers Lam Ching Chiu & Wong Siu Fung after Criminal Conviction of Bribery, Paid Total of $10,000 to CEO & Staff of Hong Kong Financial Engineering for Each Profitable Transaction in Addition to Standard Service Fee for Algorithmic Futures Trading Program, Lam Ching Chiu Sentenced to 1 Year Jail with 2 Years Suspension & Wong Siu Fung Sentenced to 9 Months Jail with 2 Years Suspension “
Hong Kong SFC Issues 5-Year Ban to Ex-Representatives of Brokerage Nerico Brothers Lam Ching Chiu & Wong Siu Fung after Criminal Conviction of Bribery
6th February 2024 – The Securities and Futures Commission (SFC) has banned Mr Lam Ching Chiu and Mr Wong Siu Fung, both former licensed representatives of Nerico Brothers Limited, from re-entering the industry for five years from 6 February 2024 to 5 February 2029 following their criminal convictions of bribery offences (Notes 1 to 3).
Lam and Wong were found guilty in August 2022 at the District Court of paying the then chief executive officer (CEO) of Hong Kong Financial Engineering Company Limited (HKFECL) bribes in relation to utilising a computerised algorithmic programme used for futures trading. The CEO was the developer of the trading programme and was responsible for its operation, while Lam and Wong, as well as their clients, used it to invest in futures contracts from late 2014 to early 2015 (Note 4).
Around December 2014 or January 2015, in addition to the service fee charged by HKFECL, the CEO asked Lam and Wong to pay a commission for each profitable transaction conducted as a reward for his staff who assisted with the operation of the trading programme. Lam subsequently paid the CEO between $60,000 and $70,000 (HKD). Wong also gave a mobile phone and cosmetic products worth $12,500 (HKD) to the CEO in December 2014 at his request, out of a desire to maintain a good relationship with him.
Neither Lam nor Wong had checked whether the above practices were known or acceptable to HKFECL before they made the payments or gifts to the CEO.
In deciding the sanctions, the SFC considers that Lam and Wong are not fit and proper persons to be licensed to carry on regulated activities due to their criminal convictions.
Notes:
- Lam was licensed to carry on Type 1 (dealing in securities), Type 2 (dealing in futures contracts), Type 3 (leveraged foreign exchange trading) and Type 9 (asset management) regulated activities under the Securities and Futures Ordinance (SFO) and was accredited to Nerico Brothers Limited from 29 August 2008 to 5 August 2021. Lam is not currently licensed by the SFC.
- Wong was licensed to carry on Type 1 (dealing in securities), Type 2 (dealing in futures contracts) and Type 9 (asset management) regulated activities under the SFO and accredited to Nerico Brothers Limited from 7 November 2011 to 5 August 2021. Wong is not currently licensed by the SFC.
- On 29 August 2022, the District Court convicted Lam of one count of offering an advantage to an agent, contrary to sections 9(2) and 12(1) of the Prevention of Bribery Ordinance and convicted Wong of two counts of the same charge. On 8 September 2022, Lam was sentenced to 12 months’ imprisonment, suspended for two years, and Wong was sentenced to nine months’ imprisonment, also suspended for two years. The Reasons for Verdict and Reasons for Sentence in relation to this case (Case No: DCCC 700/2021) are both available on the Judiciary’s website.
- The trading programme was provided by HKFECL by way of account management services.
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