Hong Kong's Securities And Futures Commission Bans Yu Chun Chieh For Life

The Securities and Futures Commission (SFC) has banned Mr Yu Chun Chieh, a former licensed representative, from re-entering the industry for life for misappropriating an investor’s money and misleading him with false account statements (Note 1).

In around May 2013, Yu persuaded a Taiwan-based investor to deposit money for fund investment into Yu’s private bank account in Hong Kong on the false basis that a bank account in Hong Kong was needed to open a securities account with his employer, a licensed corporation. Yu claimed that he will return the money to the investor after the securities account is opened.

The investor transferred around $3.9 million into Yu’s bank account which Yu then misappropriated by transferring the money to another private account in Taiwan. None of the moneys were used to open any securities account or to acquire securities for the investor. To cover up his misconduct, he falsified account statements with his firm’s letterhead to mislead the investor into believing that the money was invested in the funds as agreed.

The SFC considers that Yu’s dishonest conduct calls into serious question his fitness and properness to be a licensed person and decided to ban him for life (Note 2).

The SFC reminds investors should only deposit money for investment to the designated bank account of the licensed corporation.

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Notes:

1. Yu was licensed as a representative to carry on Type 1 (dealing in securities) regulated activity under the Securities and Futures Ordinance and was accredited to QMIS Securities (Asia) Limited (previously known as Zavori Securities (Asia) Limited) between 11 April 2013 and 3 January 2014. Yu is currently not a licensed person.
2. Yu was arrested by the Police and charged with the offence of theft under the Theft Ordinance.