Hong Kong's Securities and Futures Commission: Market Manipulator Sentenced To Community Service

The Eastern Magistrates’ Court today sentenced Mr Au Wai Lok to 100 hours of community service for market manipulation.

Au pleaded guilty on 8 August 2013 to six counts of false trading in the shares of Xi’an Haitian Antenna Technologies Limited (Xi’an Haitian) between 10 May 2010 and 31 May 2010 and was ordered to pay the Securities and Futures Commission’s (SFC) investigation costs (Note 1).

Au had, via his and his father’s securities accounts, placed a number of single board lot orders within 90 seconds of market close on five trading days between 24 and 31 May 2010 to establish a higher nominal and closing price.

On 10 May 2010, Au had placed buy and sell orders simultaneously for almost the same quantity of Xi’an Haitian shares and at the same price via two accounts in his name at different brokerages. The transactions accounted for about 95% of the market turnover that day and created a false or misleading impression of demand for and the price of Xi’an Haitian shares.

The Community Service Order Report recommended no more than 80 hours of community service to be imposed on Au but the Magistrate decided on 100 hours, taking into account the seriousness of the offence.

Note:

1. Please see the SFC’s press release dated 8 August 2013.