On February 9, 2026, two masterminds were sentenced to prison for securities fraud involving social media 'stock tips' of ramp-and-dump schemes. They earned $3.3 million in profits and exposed a broker to significant risk. Their wives were ordered to community service.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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SPOTLIGHT ON
FAMILY OFFICES
On February 9, 2026, the District Court sentenced Mr. Li King Hong and Mr. Lam Hin Fai to 24 and 22 months imprisonment, respectively, for securities fraud involving social media 'stock tips'. Their wives, Ms. Chan Ngai See and Ms. Betty Hui Pui Yan, were ordered to perform 180 and 120 hours of community service, respectively.
The Department of Justice, following a probe by the Securities and Futures Commission ("SFC"), prosecuted the two married couples after discovering their participation in 'ramp-and-dump' schemes facilitated via social media. The SFC referred the case to the Police, leading to a joint operation.
Li and Lam orchestrated the scheme, directing their wives to mislead an account executive at CVP Securities Limited into executing selling orders for shares in four Hong Kong-listed companies. The wives falsely claimed to own these shares, resulting in sales at inflated prices and subsequent repurchases at lower prices.
The fraudulent activities generated $3.3 million in profits for the defendants while exposing CVP to substantial risks and compromising the integrity of the securities market. The SFC's Executive Director of Enforcement, Mr. Michael Duignan, commended the Court's decision, emphasizing the effectiveness of the SFC's collaboration with the Police in combating financial crimes.
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