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The Eastern Magistrates’ court today convicted Mr Chan Wing Fai on seven counts of false trading after the case was remitted back to the magistrate for reconsideration following an appeal by the Securities and Futures Commission (SFC) (Note 1).
Chan faced eight charges of creating a false or misleading appearance with respect to the price of Sonavox International Holdings Limited (Sonavox) and PacMOS Technologies Holdings Limited (PacMOS), contrary to section 295 of the Securities and Futures Ordinance. He was acquitted on one count today.
Chan was remanded in jail custody pending sentencing on 29 April 2014.
The court heard that from 21 September 2009 to 2 December 2009, Chan bought single board lots of shares of Sonavox and PacMOS causing the price of Sonavox and PacMOS to increase by as much as 84% and 28% respectively.
Chan was acquitted in January 2012 and the SFC appealed the decision arguing that the trial magistrate made legal errors.
This is the second time Chan has been convicted of false trading (Note 2).
The magistrate today took the view that this was a serious offence, exacerbated by the fact that it was a repeat offence and two of the present offences were committed within the probationary period. He further noted that the last probation order did not seem to be effective given that Chan had reoffended in the probation period.
Notes:
- Please see the SFC’s press releases dated 13 January 2012 and 23 January 2014.
- Please see the SFC’s press release dated 22 October 2008.
