Three men jailed for $32m securities fraud

    Three men, aged 35 to 55, were today (March 10) jailed by the District Court over a 32 million securities fraud.

    The sentence ranged from two years and 11 months to four years and seven months.

    The court heard that the three defendants were the sole proprietor, accountant, and the settlement clerk of a securities company.

    In May 2002, the Securities & Futures Commission conducted an audit check on the company and found that shares of public listed companies entrusted by its clients with a total worth of HK$32 million were missing. The case was then referred to the Commercial Crime Bureau (CCB).

    The court was told that in 2001 and 2002 the defendants unlawfully sold clients shares entrusted in their company through a number of dummy securities accounts.

    The proceeds of the sales were deposited into the company account with false accounting records created to defraud the clients.

    The defendants were arrested and charged in May and June, 2007.

    They were convicted of conspiracy to defraud and procuring entry in certain records by deception respectively.

Police Report No.3

Ends/Monday, March 10, 2008
Issued at HKT 19:55