On May 26, 2026, the SFC announced a lifetime ban on Paul Wan Kai Leung, former director and responsible officer of Nerico Brothers Limited, due to severe misconduct involving client asset misappropriation totaling over US$222 million and providing false information during investigations.
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Regulatory Sanction and Disciplinary Action
On May 26, 2026, the Securities and Futures Commission ("SFC") imposed a lifetime ban on Mr Paul Wan Kai Leung, prohibiting his re-entry into the financial industry. This sanction follows prior disciplinary measures against Nerico Brothers Limited ("NBL") and its director, Jerff Lee Cheuk Fung, regarding the misuse and misappropriation of client assets.
Misappropriation of Client Funds
Between June 2020 and January 2021, NBL misused over US$68 million of client funds for its own account without authorization or consent. Subsequently, the firm facilitated a scheme involving Neo Ng Yu, resulting in the misappropriation of an additional US$154 million from the same client after January 2021.
Investigation Findings and Individual Accountability
During the inquiry, NBL relied on contradictory narratives and fabricated documents to conceal the fund misappropriation. The SFC attributed this misconduct directly to Mr Wan and Mr Lee. Mr Wan authorized fund transfers, executed facilitating documents, and knowingly provided false information during SFC interviews, thereby breaching the Securities and Futures Ordinance.
Procedural History and Aggravating Factors
The SFC issued its initial decision to ban Mr Wan in August 2025. Mr Wan applied for a review with the Securities and Futures Appeals Tribunal in October 2025 but withdrew the application in May 2026. The SFC considered his conduct egregious, noting it undermined market confidence, compromised his integrity, and caused significant client losses.
Licence History and Related Disciplinary Context
Mr Wan served as a director of NBL from October 2000 to August 2022, holding responsible officer approvals for Types 1, 2, 3, 5, and 9 activities between 2003 and 2022. He also managed core functions including Compliance and Risk Management until June 2022. NBL’s licence has been revoked, and Jerff Lee is banned for life. Neo Ng Yu, a substantial shareholder of the client’s holding company, is subject to related disciplinary action as detailed in the SFC press release dated 28 August 2025.
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