The Hong Kong Securities and Futures Commission (SFC) and the Independent Commission Against Corruption (ICAC) conducted a joint operation, codenamed “Leverage”, targeting a syndicate suspected of manipulating the shares of a listed company and engaging in corrupt activities, resulting in the arrest of the company’s former chairman and former executive director. The action followed the SFC’s detection of suspicious trading indicating potential market misconduct and corruption. The operation involved searches at 14 locations, including the listed company’s offices and SFC-licensed brokers. The syndicate allegedly used documents containing false information, including internal records and public announcements, to falsely claim the company had entered into a share subscription agreement and formed a joint venture with a Mainland company involving amounts exceeding HKD 20 million, and allegedly created a false market appearance through multiple nominee accounts. The former executive director, who was also a responsible officer and director of a broker at the relevant time, was additionally suspected of accepting advantages from the former chairman and misappropriating client-owned shares worth approximately HKD 9 million; trading in the company’s shares has been suspended since March 2025 following a court order mandating its liquidation. The case has been referred to the ICAC for investigation into suspected corruption, while the SFC is focusing on suspected market misconduct under the Securities and Futures Ordinance. The authorities said the investigation remains ongoing.

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