.jpg)
The Eastern Magistrates’ Court has convicted Mr Danny Fung Kwong Shing, a former account executive of Fulbright Securities Limited, of the offences of engaging in fraud or deception in transactions involving securities under the Securities and Futures Ordinance (SFO) in a criminal prosecution brought by the Securities and Futures Commission (SFC) (Notes 1 & 2).
Fung was remanded in custody yesterday pending sentence on 27 October 2022 after pleading guilty to all 25 charges.
During the hearing, Fung admitted that between 2 August 2013 and 16 December 2013, he had employed a fraudulent scheme to effect securities transactions in eight stocks between two securities trading accounts under his control. The securities trading accounts belonged to his friend and one of his clients, and he effected the transactions by dishonestly using his client’s funds and securities without authorisation.
In essence, the scheme involved different trading patterns – namely, using his client’s funds to buy shares at high prices from the market and selling those shares at low prices to his friend’s account; or using his client’s funds to buy shares at high prices from his friend’s account. These series of transactions resulted in a trading profit of $172,890 to his friend and a loss of $48,321 to his client.
Notes:
- Under section 300 of the SFO, it is an offence to engage in any act, practice or course of business which is fraudulent or deceptive in a transaction involving securities.
- Fung was licensed to carry on Type 1 (dealing in securities) regulated activity under the SFO. He was accredited to Fulbright Securities Limited during the periods from 1 September 2001 to 23 February 2005 and from 30 July 2008 to 6 November 2014. On 23 November 2017, the SFC banned him from re-entering the industry for life. Please refer to the SFC’s press release dated 23 November 2017.
