Retail trader sentenced to 220 hours of community service and fined for false trading in Hong Kong-listed shares.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On February 12, 2026, Mr. Ng Ka Hei was sentenced by the Eastern Magistrates' Courts to 220 hours of community service and a fine of $117,715 for false trading in the shares of six Hong Kong-listed companies between 20 September 2022 and 24 October 2024. He also had to pay the full investigation costs of the Securities and Futures Commission ("SFC") amounting to $199,669.
Mr. Ng employed the 'scaffolding' and wash trading methods to artificially inflate share prices. This manipulative practice was identified and penalized in a bid to maintain market integrity and protect investors. The SFC's Executive Director of Enforcement, Mr. Michael Duignan, stressed the necessity of stern action against such offences to safeguard investor interests.
The offence of false trading, as per the Securities and Futures Ordinance Section 295, was the basis for Mr. Ng's sentencing. Following an assessment of the probation officer’s suitability report, the Court decided in favor of a community service order over immediate imprisonment, demonstrating a balanced approach to sentencing in such cases.
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