Hong Kong Court Fines Individual (Ng Ka Hei) $40,000 (HKD 317,384) in Penalty & Investigation Costs (Incurred by Hong Kong SFC) and Sentenced to 220 Hours of Community Services for False Trading in 6 Hong Kong-Listed Companies to Earn $15,000 (HKD 117,715) Profit in 2022 & 2023, Used Scaffolding Strategy by Repeatedly Placing & Cancelling Orders at Higher Prices, Used Multiple Securities Accounts to Wash Trades in Which He is Actual Buyer & Seller of Shares
13th February 2026 | Hong Kong
A Hong Kong court has fined an individual (Ng Ka Hei) $40,000 (HKD 317,384) in penalty & investigation costs (Incurred by Hong Kong SFC) and sentenced to 220 hours of community services for false trading in 6 Hong Kong-listed companies to earn $15,000 (HKD 117,715) profit in 2022 & 2023, using scaffolding strategy by repeatedly placing & cancelling orders at higher prices and used multiple securities accounts to wash trades in which he is actual buyer & seller of shares. Hong Kong Securities and Futures Commission (SFC) 12/2/26: “The Eastern Magistrates’ Courts today sentenced Mr Ng Ka Hei to 220 hours of community service following his conviction of false trading in the shares of six Hong Kong-listed companies in a criminal prosecution brought by the Securities and Futures Commission (SFC) (Notes 1 to 3). The Court also ordered Ng to pay a fine of $117,715, a sum equivalent to the total profit he made from his false trading activities, and to pay the SFC’s full investigation costs of $199,669. Between 20 September 2022 and 24 October 2024, Ng made profits by selling shares at artificially high prices he created through “scaffolding” and wash trading. He placed and cancelled trading orders at increasing prices and traded between his various securities accounts as both buyer and seller. In sentencing, Deputy Magistrate Mr Chu Chung Keung stressed the gravity of Ng’s offences, and the Court had considered imposing immediate imprisonment. However, after reviewing the probation officer’s suitability report, the Court decided to impose a community service order, with the expectation that Ng would appreciate the opportunity for rehabilitation.” In 2026 January, a Hong Kong court convicted Ng Ka Hei for false trading in 6 Hong Kong-listed companies to earn $15,000 (HKD 117,715) profit in 2022 & 2023, using scaffolding strategy by repeatedly placing & cancelling orders at higher prices and used multiple securities accounts to wash trades in which he is actual buyer & seller of shares.
“ Hong Kong Court Fines Individual (Ng Ka Hei) $40,000 (HKD 317,384) in Penalty & Investigation Costs (Incurred by Hong Kong SFC) and Sentenced to 220 Hours of Community Services for False Trading in 6 Hong Kong-Listed Companies to Earn $15,000 (HKD 117,715) Profit in 2022 & 2023, Used Scaffolding Strategy by Repeatedly Placing & Cancelling Orders at Higher Prices, Used Multiple Securities Accounts to Wash Trades in Which He is Actual Buyer & Seller of Shares “
![](https://www.caproasia.com/wp-content/uploads/2025/08/Air-Charter-Service-728x90-1.png")
Notes:
- The six companies were listed on the Main Board of The Stock Exchange of Hong Kong Limited.
- False trading constitutes an offence contrary to section 295 of the Securities and Futures Ordinance.
- Please see the SFC’s press release dated 22 January 2026.
Hong Kong Court Convicts Individual (Ng Ka Hei) for False Trading in 6 Hong Kong-Listed Companies to Earn $15,000 (HKD 117,715) Profit in 2022 & 2023, Used Scaffolding Strategy by Repeatedly Placing & Cancelling Orders at Higher Prices, Used Multiple Securities Accounts to Wash Trades in Which He is Actual Buyer & Seller of Shares
22nd January – A Hong Kong court has convicted an individual (Ng Ka Hei) for false trading in 6 Hong Kong-listed companies to earn $15,000 (HKD 117,715) profit in 2022 & 2023, using scaffolding strategy by repeatedly placing & cancelling orders at higher prices and used multiple securities accounts to wash trades in which he is actual buyer & seller of shares. Hong Kong Securities and Futures Commission (SFC) 22/1/26: “The Eastern Magistrates’ Courts today convicted Mr Ng Ka Hei of seven counts of false trading in the shares of six Hong Kong-listed companies following a criminal prosecution by the Securities and Futures Commission (SFC). The SFC alleged that between 20 September 2022 and 24 October 2023, Ng employed a strategy commonly known as “scaffolding” by repeatedly placing and cancelling trading orders at progressively higher prices. He also used his various securities accounts to conduct wash trades in which he was both the buyer and seller of the shares. These trading activities carried out by Ng impacted the price of the shares and misled market participants into believing that there was a genuine market for the shares at artificial price levels. He took advantage of the situation to dispose of the shares, netting himself a profit of $117,715. Ng pleaded guilty to all seven counts of the offence. The Court adjourned the case to 12 February 2026 for sentencing. He was granted a cash bail of $10,000. Notes ~ The six companies were listed on the Main Board of The Stock Exchange of Hong Kong Limited. False trading constitutes an offence contrary to section 295 of the Securities and Futures Ordinance.
Caproasia Users
- Manage $20 million to $30 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2026 Investment Day
- March - Hong Kong
- March - Singapore
- April - Hong Kong
- April - Singapore
- July - Hong Kong
- July - Singapore
- Sept- Hong Kong
- Sept - Singapore
- Oct- Hong Kong
- Nov - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Institutional Investor Summit
- The Investment / Alternatives Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
