SFC and ICAC arrest former execs of listed company

The joint operation uncovered suspected market manipulation and corruption.

A syndicate suspected manipulating shares of a listing company(name not mentioned) was jointly investigated by the Securities and Futures Commission (SFC) and the Independent Commission Against Corruption (ICAC) on 23 July.

Shares of the relative listed company has been suspended since March 2025, following a court order mandating its liquidation.

During the joint operation, codenamed "Leverage,” the SFC and the ICAC searched 14 locations and arrested a former chairman and a former executive director of the listed company.

The syndicate is suspected creating fake performance for the listing company's shares and conspiring false internal records and announcements involving more than $20 million.

In addition, the arrested director of the listed company, who was also a director of a brokerage company, was suspected accepting bribes from the former chairman of the listed company and misappropriating shares worth $9m owned by a client of the brokerage company.

The suspicious trading activities initially discovered by the SFC under Prevention of Bribery Ordinance led to this joint operation, investigation for suspected corruption was referred to ICAC while the SFC focused on the market.