Hong Kong Court Sentenced 2 Married Couples to Jail & Community Service for Securities Fraud in Ramp-&-Dump Scheme by Using Information from “WeChat Teachers” to Execute Naked Short Selling & Generated $422,000 (HKD 3.3 Million) Profit, Li King Hong 2-Year Jail-Term, Lam Hin Fai 22-Month Jail-Term, Li King Hong Wife Chan Ngai See 180 Hours Community Service & Lam Hin Fai Wife Betty Hui Pui Yan 120 Hours Community Service, Li King Hong was ex-SFC Licensed Representative at Core Pacific-Yamaichi Futures, Li King Hong & Lam Hin Fai Directed Wives to Falsely Claim Ownership of 4 Hong Kong-Listed Companies to Place Sell Orders (Naked Short Selling) at CVP Securities, 4 Companies are 1) NOIZ Group (Previously Merdeka Financial Group) 2) National Investment Fund, 3) Contel Technology Company & 4) Sino Prosper (Group) Holdings
10th February 2026 | Hong Kong
A Hong Kong Court has sentenced 2 married couples to jail & community service for securities fraud in ramp-&-dump scheme by using information from “WeChat teachers” to execute naked short selling & generated $422,000 (HKD 3.3 million) in profit. The Hong Kong Court sentences – Li King Hong 2-year jail-term, Lam Hin Fai 22-month jail-term, Li King Hong wife Chan Ngai See 180 hours community service & Lam Hin Fai wife Betty Hui Pui Yan 120 hours community service, Li King Hong was ex-SFC licensed representative at Core Pacific-Yamaichi Futures. Li King Hong & Lam Hin Fai had directed their wives falsely claim ownership of 4 Hong Kong-listed companies to place sell orders (Naked short selling) at CVP Securities. The 4 companies are 1) NOIZ Group (Previously Merdeka Financial Group) 2) National Investment Fund, 3) Contel Technology Company & 4) Sino Prosper (Group) Holdings. Hong Kong SFC Announcement (9/2/26): “The District Court today sentenced two masterminds to imprisonment and their wives to community service, after convictions for securities fraud involving the shares of four Hong Kong-listed companies (Notes 1 and 2). The Department of Justice prosecuted two married couples who were friends at the material time, after an Securities and Futures Commission (SFC) investigation revealed their involvement in ramp-and-dump schemes promoted on social media. Acting on information from “WeChat teachers”, the defendants engaged in naked short selling for profit making. The SFC uncovered evidence of fraudulent activities and referred the case to the Police for a joint operation. Mr Li King Hong and Mr Lam Hin Fai were sentenced to 24 months and 22 months in prison, and their wives, Ms Chan Ngai See and Ms Betty Hui Pui Yan, were ordered to serve 180 hours and 120 hours of community services respectively. The Court heard that between June and September 2020, Li, a former SFC-licensed representative (Note 3), and Lam, acting as the masterminds, directed their wives, Chan and Hui, to deceive an account executive at CVP Securities Limited (CVP) on nine occasions (Note 4). Chan, Lam and Hui falsely represented ownership of shares in four Hong Kong-listed companies with the intent to defraud, inducing CVP to place selling orders. The three sold shares at inflated price when they did not own them. Following a subsequent decline in share price, they repurchased the shares at lower prices to close their short positions, thereby obtaining illicit profits. The defendants were found to have engaged in naked short selling, earning $3.3 million in profits while exposing CVP to significant risk of losses and undermining the integrity of the securities market.”
“ Hong Kong Court Sentenced 2 Married Couples to Jail & Community Service for Securities Fraud in Ramp-&-Dump Scheme by Using Information from “WeChat Teachers” to Execute Naked Short Selling & Generated $422,000 (HKD 3.3 Million) Profit, Li King Hong 2-Year Jail-Term, Lam Hin Fai 22-Month Jail-Term, Li King Hong Wife Chan Ngai See 180 Hours Community Service & Lam Hin Fai Wife Betty Hui Pui Yan 120 Hours Community Service, Li King Hong was ex-SFC Licensed Representative at Core Pacific-Yamaichi Futures, Li King Hong & Lam Hin Fai Directed Wives to Falsely Claim Ownership of 4 Hong Kong-Listed Companies to Place Sell Orders (Naked Short Selling) at CVP Securities, 4 Companies are 1) NOIZ Group (Previously Merdeka Financial Group) 2) National Investment Fund, 3) Contel Technology Company & 4) Sino Prosper (Group) Holdings “
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Notes:
- The four Hong Kong listed stocks are (i) NOIZ Group Limited (formerly known as Merdeka Financial Group Limited, stock code: 08163), (ii) National Investment Fund Limited (stock code: 01227), (iii) Contel Technology Company Limited (stock code: 01912) and (iv) Sino Prosper (Group) Holdings Limited (stock code: 00766).
- Please see the SFC’s press releases dated 23 June 2023, 18 August 2023 and 12 September 2024 for details.
- Li was licensed to carry out Type 2 (dealing in futures contracts) regulated activity under the Securities and Futures Ordinance (SFO). At the material time, he was accredited to Core Pacific-Yamaichi Futures (H.K.) Limited until 15 January 2021. Li is currently not accredited to any licensed corporation.
- CVP was a corporation licensed under the SFO to carry on Type 1 (dealing in securities) and Type 2 (dealing in futures contracts) regulated activities during the material time. Its licences were revoked on 26 November 2024 and 28 October 2022 respectively.
Hong Kong Court Sentenced 2 Married Couples to Jail & Community Service for Securities Fraud in Ramp-&-Dump Scheme by Using Information from “WeChat Teachers” to Execute Naked Short Selling & Generated $422,000 (HKD 3.3 Million) Profit, Li King Hong 2-Year Jail-Term, Lam Hin Fai 22-Month Jail-Term, Li King Hong Wife Chan Ngai See 180 Hours Community Service & Lam Hin Fai Wife Betty Hui Pui Yan 120 Hours Community Service, Li King Hong was ex-SFC Licensed Representative at Core Pacific-Yamaichi Futures, Li King Hong & Lam Hin Fai Directed Wives to Falsely Claim Ownership of 4 Hong Kong-Listed Companies to Place Sell Orders (Naked Short Selling) at CVP Securities, 4 Companies are 1) NOIZ Group (Previously Merdeka Financial Group) 2) National Investment Fund, 3) Contel Technology Company & 4) Sino Prosper (Group) Holdings
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