The Securities and Futures Commission (SFC) has banned Mr Manesh Vijaykumar Samtani, a former licensed representative of KGI Asia Limited and KGI Futures (Hong Kong) Limited (collectively KGI), from re-entering the industry for life (Note 1).
The SFC found that, from July 2011 to November 2012, Samtani provided six clients with false screenshots of KGI’s trading platform and other false information to conceal trading losses and mislead the clients on the transactions conducted in their accounts and their actual account balances.
The SFC also found that Samtani failed to follow his clients’ specific instructions on the handling of their accounts and conducted transactions in their accounts contrary to their express instructions or without their authorization.
Samtani’s misconduct calls into question his fitness and properness to be a licensed person. In deciding the penalty, the SFC took into account that:
- Samtani’s conduct was dishonest;
- he had abused the trust and confidence that his clients and employers placed in him; and
- his actions seriously jeopardised his clients’ interests and resulted in financial losses of more than $8 million to the clients.
Samtani’s misconduct was facilitated by his clients providing him with their passwords for online trading accounts. The SFC reminds investors not to disclose their passwords to anyone to prevent unauthorized access to their accounts.
Notes:
- Samtani was licensed as a representative to carry on Type 1 (dealing in securities), Type 2 (dealing in futures contracts) and Type 4 (advising on securities) regulated activities under the Securities and Futures Ordinance and was accredited to KGI Asia Limited from 20 March 2008 to 28 November 2012 and to KGI Futures (Hong Kong) Limited from 11 August 2008 to 28 November 2012. Samtani is currently not a licensed person.
- A bankruptcy order was made against Samtani on 26 February 2013.
- A copy of the Statement of Disciplinary Action in relation to the matter is available on the SFC website.
