Hong Kong’s Securities and Futures Commission (SFC) reported that the Eastern Magistrates’ Courts sentenced Mr Ng Ka Hei to 220 hours of community service following his conviction for false trading in the shares of six Hong Kong-listed companies in a criminal prosecution brought by the SFC. The Court also ordered Ng to pay a fine of 117,715, equivalent to the total profit from the misconduct, and to pay the SFC’s investigation costs of 199,669. Between 20 September 2022 and 24 October 2024, Ng made profits by selling shares at artificially high prices created through “scaffolding” and wash trading, including placing and cancelling orders at increasing prices and trading between his securities accounts as both buyer and seller. In sentencing, the Court stressed the gravity of the offences and considered immediate imprisonment, but imposed a community service order after reviewing the probation officer’s report; the false trading offence was cited as contrary to section 295 of the Securities and Futures Ordinance.
Hong Kong Securities & Futures Commission 2026-02-12
Hong Kong Securities and Futures Commission secures false trading conviction and community service sentence for retail trader
The Hong Kong Securities and Futures Commission announced that Mr. Ng Ka Hei was sentenced to 220 hours of community service and fined 117,715 HKD for false trading in shares of six Hong Kong-listed companies, with additional costs of 199,669 HKD for the SFC's investigation. The Eastern Magistrates’ Courts highlighted the seriousness of the offences, involving "scaffolding" and wash trading, but chose community service over imprisonment after reviewing a probation report.