Aggregated News From Investment Management Regulators

Hong Kong-Singapore joint operation against suspected cross-border ramp-and-dump syndicate

Report/Flag

Please complete the required fields.



The Securities and Futures Commission (SFC), the Hong Kong Police Force (Hong Kong Police), the Monetary Authority of Singapore (MAS) and the Singapore Police Force (Singapore Police) have conducted a joint operation against an active and sophisticated syndicate suspected of operating ramp-and-dump manipulation schemes in Hong Kong and Singapore (Note 1).

The simultaneous joint operation involving securities regulators and law enforcement agencies in Hong Kong and Singapore is the first-of-its-kind in tackling cross border ramp-and-dump scams (Notes 2 & 3).

A total of 10 people – including individuals believed to be the key members of the syndicate and their associates and some senior executives of Hong Kong listed companies – were arrested yesterday during searches of 33 premises in Hong Kong and Singapore by more than 190 officers of the SFC, the Hong Kong Police, the MAS and the Singapore Police.

The Hong Kong-Singapore joint operation came after the SFC, which first discovered  suspicious trading activities of the syndicate, referred the case to the MAS and the Hong Kong Police because of a cross-border element and the scale of suspected money laundering offences, in addition to specific market misconduct offences under the Securities and Futures Ordinance (SFO).

Mr Thomas Atkinson, the SFC’s Executive Director of Enforcement, said: “Tackling investment fraud and scams on online platforms, such as social media ramp-and-dump schemes, remains a top enforcement priority of the SFC.  To this end, the SFC will continue to deploy all the enforcement and supervisory tools at its disposals as well as collaborating with other local and overseas law enforcement agencies and regulatory counterparts.”

“A ramp-and-dump scam is a serious market misconduct offence under the SFO.  Any ramp-and-dump scam, which also involved the active participation or wilful blindness of a controlling shareholder or senior management of listed companies, would be regarded as particularly serious,” Mr Atkinson added.

The SFC appreciates the assistance of the Hong Kong Police, the MAS and the Singapore Police and will continue to work closely with the Hong Kong Police’s Anti-Deception Coordination Centre and the Investor and Financial Education Council on ongoing investor education.  Investors should also stay vigilant and make informed investment decisions instead of relying on stock tips circulating in chat groups or on social media platforms.

Notes:

  1. Ramp-and-dump scheme is a form of market manipulation where fraudsters use different means to “ramp” up the share price of a listed company and then “dump” the shares to other investors at an artificially high price.  The fraudsters also used social media platform to lure the unsuspecting investors to buy the shares at an artificially high price while the syndicate members were offloading for profit leaving innocent victims with substantial financial losses.
  2. The joint operation was conducted under the arrangement of the Memorandum of Understanding signed between the SFC and the Hong Kong Police.  Please see the SFC’s press release dated 25 August 2017.
  3. The joint operation was conducted under the arrangement of the International Organization of Securities Commissions Enhanced Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information and Multilateral Memorandum of Understanding and the bilateral Memorandum of Understanding between the SFC and the MAS.  Please see the SFC’s press releases dated 11 May 2018 and 16 January 1997.

This news item was originally published by the Securities and Futures Commission (SFC HK). For more information, please see the Source Link.

Regulator Information

Abbreviation: SFC
Jurisdiction: Hong Kong

Recent Articles

Grand Trust Holdings United Kingdom

We believe this firm may be providing financial services or products in the UK without our authorisation. Find out why you should be wary...

Announcement for the referral of a suspicion of violating Article (49) of the Capital Market Law and Article (2) of the Market Conduct Regulations...

In line with the Capital Market Authority's (CMA) responsibilities to protect the citizens and investors from unfair or unsound practices, and aiming to achieve...

Guidance on Application for Registration of a Virtual Assets Service Provider

Guidance Attachment: guidance_-_application_for_vasp_registration.pdf This news item was originally published by the British Virgin Islands Financial Services Commission (BVIFSC VG). For more information, please see the Source Link.

Virtual Assets Service Providers Guide to the Prevention of Money Laundering, Terrorist Financing and Proliferation Financing

Guidance Attachment: vasp_aml_cft_guidance.pdf This news item was originally published by the British Virgin Islands Financial Services Commission (BVIFSC VG). For more information, please see the Source...

Get the latest from Regulatory.News in your inbox!

×