The Securities and Futures Commission (SFC), Hong Kong’s securities regulator, has charged 24 individuals with market manipulation in several ramp-and-dump stock investment schemes. The individuals were charged over several months following a series of extensive investigations by the SFC and the Hong Kong Police Force into suspected money laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term cases.

On Friday, the SFC charged two additional suspects with money laundering-related offences, bringing the total number of charged individuals to 24. The two new suspects were arraigned before a magistrate court in Hong Kong, the SFC said in a statement.

‘A Large-Scale and Sophisticated Syndicate’

The SFC’s latest charges come days after the regulator arraigned Leung Chung Yi, one of its former licensed representatives, on April 17. The securities watchdog noted that Leung was charged in connection with “a large-scale and sophisticated syndicate” behind a suspected ramp-and-dump market manipulation.

Furthermore, the SFC noted that Leung was charged “with conspiracy to employ a scheme with intent to defraud or deceive in transactions involving securities.” However, the former SFC rep was granted bail on several conditions including a cash bail of $600,000.

Meanwhile, on April 4, the SFC charged six suspects believed to include key members and the alleged ringleader of the syndicate. Four of the suspects were charged with conspiracy to commit securities fraud and were granted cash bail ranging from $500,000 to $1 million.

According to the SFC, the suspects working with other previously arrested suspects conspired to use multiple nominee accounts to capture the shares of two target stocks and drive up the prices of these stocks between September 2018 and April 2019.

"The syndicate is alleged to have induced investors to purchase shares in these stocks through social media platforms to facilitate their disposal of shares at a profit," the SFC explained in a statement. "The prices of these stocks collapsed in November 2018 and April 2019 once the demand was exhausted."

SFC Promises Justice

The SFC's latest actions follow the arraignment of 14 suspected members of other syndicates who were rounded up between September and November last year. On top of that, the securities watchdog froze about $650 million in the securities trading accounts of the suspected members of the syndicates.

“We will see to it that suspects of market misconduct are brought to justice and the integrity of Hong Kong’s financial market and the investing public are protected,” said Christopher Wilson, the SFC’s Executive Director of Enforcement, said in a statement.

“To this end, we will not hesitate to deploy legal and regulatory tools at our disposal and continue our collaboration with the Police and other law enforcement agencies in combating financial crimes,” Wilson added.