MMT sanctions chauffeur and wife for insider dealing in Dan Form shares and orders disgorgement of illicit profit

On January 21, 2025, the Market Misconduct Tribunal ("MMT") ordered Ms. Choi Ban Yee and her husband, Mr. Sit Yuk Yin, to disgorge illicit profits totaling $106,968. Ms. Choi, the wife of a chauffeur employed by Tian An China Investments Company Limited, benefited from insider dealing in the shares of Asiasec Properties Limited (formerly Dan Form Holdings Company Limited) before a takeover involving the companies was announced.

The tribunal imposed several orders, including a disgorgement of profits, cold shoulder orders, cease and desist orders, and the payment of costs and expenses incurred by the government and the Securities and Futures Commission ("SFC"). These orders apply to both Ms. Choi and Mr. Sit for 16 months. The cold shoulder orders specifically prohibit them from dealing in any securities, futures contracts, or collective investment schemes in Hong Kong during this period.

The MMT found that Mr. Sit was in possession of inside information about the takeover by 13 September 2016, including the indicative offer price and potential trading suspension of Dan Form. He subsequently advised or procured his wife to engage in dealing in Dan Form shares on 14 September 2016, resulting in a profit of $106,968 from selling the shares after the takeover announcement.

The MMT proceedings against Ms. Cynthia Chen Si Ying, the former company secretary of Dan Form, and Mr. Wen Lide, who is related to Chen, are ongoing. The disgorgement order was made under section 257(1)(d) of the Securities and Futures Ordinance ("SFO") for any profit gained or loss avoided by the person to be paid to the Government. The other orders were made under sections 257(1)(b), (c), (e), and (f) of the SFO. The MMT report detailing the rationale behind the orders is available on its website, as referenced in the SFC’s press release dated 23 April 2024.