The Hong Kong Securities and Futures Commission has banned Paul Wan Kai Leung, former responsible officer, manager-in-charge and director of Nerico Brothers Limited, from re-entering the industry for life. The action follows the regulator’s earlier sanctions against Nerico Brothers and director Jerff Lee Cheuk Fung and relates to the misuse of more than USD68 million of a client’s funds, the facilitation of a scheme that misappropriated about USD154 million more from the same client, and Wan’s knowing provision of false or misleading answers to the SFC. The SFC found that between June 2020 and January 2021 Nerico Brothers used the client’s funds for the firm’s own account without the client’s knowledge, instruction, authorization or consent and in breach of the client agreement. From January 2021, the firm knowingly facilitated a scheme orchestrated by Neo Ng Yu and connected persons and entities that led to the misappropriation of the same client’s funds. During the SFC’s inquiry and investigation, the firm put forward two contradictory narratives and conflicting documents to explain the use and whereabouts of the funds, and the SFC found both narratives false and the supporting documents fabricated. The regulator held that Wan directly contributed to the misconduct by authorizing the transfers, executing documents that facilitated the misuse and misappropriation, and breaching the Securities and Futures Ordinance by giving false or misleading explanations in interview. The SFC issued its decision to impose the life ban in August 2025. Wan applied to the Securities and Futures Appeals Tribunal for a review in October 2025 and withdrew that application in May 2026.
Hong Kong Securities & Futures Commission2026-05-26
Hong Kong Securities and Futures Commission imposes life ban on former Nerico Brothers executive Paul Wan over client fund misuse and false information
The Hong Kong Securities and Futures Commission has permanently banned former Nerico Brothers Limited responsible officer and director Paul Wan Kai Leung from the industry for his role in misusing and misappropriating client funds and providing false or misleading information. The SFC found that Nerico Brothers used over USD68 million of client funds for its own account, facilitated a scheme that misappropriated about USD154 million more, and submitted fabricated explanations and documents, with Wan authorizing transfers and executing facilitating documents. Wan withdrew his application to the Securities and Futures Appeals Tribunal to review the SFC’s August 2025 decision in May 2026.