SFC orders 15 brokers to freeze 32 accounts linked to 'ramp and dump' scam

The total frozen assets amounted to $860m.

The Securities and Futures Commission (SFC) has ordered 15 more brokers to freeze assets held in 32 trading accounts linked to the "ramp and dump" scam.

The syndicate ramps up share prices of target stocks and then lure investors through social media to buy shares at artificially high prices. The syndicate later “dumps” or sells the shares, leading to profits for them and substantial losses for the victims.

The 15 brokerages covered by the restriction notice are Canfield Securities Company Limited, China Galaxy International Securities (Hong Kong) Co., Limited, China Tonghai Securities Limited, Emperor Securities Limited, Enhanced Securities Limited, Enlighten Securities Limited, Futu Securities International (Hong Kong) Limited, Huatai Financial Holdings (Hong Kong) Limited, I Win Securities Limited, KGI Asia Limited, Riches Depot Securities Co., Limited, Solomon Securities Limited, Sun Hung Kai Investment Services Limited, Sun International Securities Limited, and Yuzhou Financial Holdings Limited.

The restriction will prohibit them from dealing with the identified trading accounts, enter into transactions to acquire securities, process withdrawals or transfers of securities, dispose of with any securities or cash, and assist another person to deal with any relevant property.

The SFC previously issued 16 restriction notes, freezing 63 securities accounts that are suspected to hold the proceeds of the ramp-and-dump scheme. The total frozen assets amounted to $860m.

The SFC, with the help of Hong Kong Police, has also arrested 12 individuals involved in the stock scam.

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