The SFC alleges that the syndicate members organised and executed the schemes in the shares of two Hong Kong-listed companies through different social media platforms. They manipulated the trading of a large volume of those shares by using a substantial number of nominee accounts.
The regulator stated:
In implementing the schemes, the syndicate members were alleged to have committed offences involving market manipulation and money laundering.
The SFC detailed that from October 2018 to May 2019, Tam Chung Wai (previously known as Tam Sze Chun), Tam Sze Leung, Kwok Wai Leung, Hui Ka Chun and Chan Kai Sun Joseph allegedly conspired to other individuals to use multiple nominee accounts to corner the shares of the target stocks and drive up the price of those shares.
Furthermore, the regulator alleges that at a later stage, the defendants introduced investors to buy those shares through different social media platforms. The scheme operators, then aggressively disposed of the shares at a profit and the price of the target stocks collapsed once the demand was exhausted.
