The Securities and Futures Commission ("SFC") and the Independent Commission Against Corruption ("ICAC") conducted a joint operation, codenamed 'Leverage', on July 25, 2025, resulting in the arrest of two former executives of a listed company for suspected market manipulation and corrupt practices. The operation targeted a syndicate that allegedly used false documents to manipulate the company's shares.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On July 25, 2025, the Securities and Futures Commission ("SFC") and the Independent Commission Against Corruption ("ICAC") carried out a joint operation codenamed 'Leverage', leading to the arrest of two former executives of a listed company. The operation was conducted on July 25, 2025, and was directed at a syndicate suspected of engaging in market manipulation and corrupt practices.
The operation involved the search of 14 locations, including the offices of the listed company and SFC-licensed brokers. During this phase, the ICAC arrested the former chairman and executive director of the listed company under the Prevention of Bribery Ordinance.
The syndicate is alleged to have colluded in presenting false information in internal records and public announcements, falsely claiming a share subscription agreement and joint venture with a Mainland company, involving amounts exceeding HK$20 million. Additionally, they manipulated the market for the listed company's shares through multiple nominee accounts.
The former executive director, who also served as a responsible officer and director at a broker, was suspected of accepting bribes from the former chairman and misappropriating client shares worth approximately HK$9 million.
The joint operation stemmed from the SFC’s initial detection of suspicious trading activities suggesting potential market misconduct and corruption. The case was referred to the ICAC for suspected corruption, while the SFC concentrated on market misconduct under the SFO. The investigation remains ongoing, with no further comments provided.
Trading in shares of the listed company has been suspended since March 2025 following a court order mandating its liquidation.
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