The Securities and Futures Commission (SFC) has banned Mr Danny Fung Kwong Shing, a former account executive of Fulbright Securities Limited (Fulbright Securities), from re-entering the industry for life and fined him $542,071.
The disciplinary action follows an SFC investigation which found that between January 2013 and May 2014, Fung had:
- conducted 772 unauthorized transactions in the account of his friend-cum-client, X, at Fulbright Securities;
- fabricated telephone order recordings to mislead Fulbright Securities into believing that the orders for the transactions conducted in X’s account were placed by X; and
- impersonated another friend-cum-client, Y, and placed orders in Y’s account at Enhanced Securities Limited by telephone.
The investigation also revealed that at least 53 of the above-mentioned unauthorized transactions were conducted by Fung under a premeditated scheme to secure profits for Y, with the result that Y made profits from these transactions at X’s expense by selling shares to X at prices higher than the purchase prices.
X suffered a substantial loss of around $2.6 million as a result of all the unauthorized transactions.
The SFC considers that Fung’s conduct was gravely dishonest and that he is not a fit and proper person to be licensed.