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The Market Misconduct Tribunal, chaired by Mr Justice Lunn sitting with Mr Malcolm Antony Barnett and Ms Susan Wong as members, has submitted its report to the Financial Secretary on its proceedings in relation to dealings in the listed securities of Mobicon Group Limited (Mobicon) from April 2003 to May 2005.
In part I of its report, the tribunal determined that Mr Measure Hung Kim Fung and Mr Alvan Yeung Kin Kwan had conducted or facilitated matched trades with the intention of creating a false or misleading appearance of active trading in Mobicon shares on the Stock Exchange of Hong Kong, and hence were culpable of false trading, contrary to section 274(1)(a) of the Securities and Futures Ordinance, Cap 571.
In part II of its report, the tribunal made orders against the above-named persons, inter alia, that:
Mr Measure Hung Kim Fung:
(i) pursuant to section 257(1)(a), that for a period of two years he shall not, without the leave of the Court of First Instance, be or continue to be a director of Mobicon or of any company that is now or becomes a subsidiary of Mobicon;
(ii) pursuant to section 257(1)(c), that he shall not again perpetrate any conduct which constitutes market misconduct;
(iii) pursuant to section 257(1)(e), that he shall pay the Government $2,954,429.08; and
(iv) pursuant to section 257(1)(f), that he shall pay the Securities and Futures Commission $75,672.00.
Mr Alvan Yeung Kin Kwan:
(i) pursuant to section 257(1)(a), that for a period of two years he shall not, without the leave of the Court of First Instance, be a director of Mobicon or of any company that is now or becomes a subsidiary of Mobicon;
(ii) pursuant to section 257(1)(c), that he shall not again perpetrate any conduct which constitutes market misconduct;
(iii) pursuant to section 257(1)(e), that he shall pay the Government $1,477,214.54;
(iv) pursuant to section 257(1)(f), that he shall pay the Securities and Futures Commission $37,836.00; and
(v) pursuant to section 257(1)(g), that the Hong Kong Institute of Certified Public Accountants be recommended to take disciplinary action against him.
The MMT proceedings took place on 33 hearing days.
The summary of the tribunal's report is at the Annex.
Ends/Monday, May 18, 2009
Issued at HKT 16:30
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