A leader of a sophisticated ramp-and-dump scheme made his first court appearance in a Hong Kong court today, charged with market manipulation and various criminal offences. The case stems from an earlier joint operation of Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), and the local police.
Six senior executives of three listed companies, including star chef Wong Wing-chee, were among 13 people arrested as regulators cracked down on a “ramp and dump” scam. An arrest warrant was issued for Tam Siu Ki and he was subsequently placed on the list of “Have you seen these people?” on the SFC’s website.
In this scam, criminals made use of social media to call upon investors to buy or sell certain stocks by claiming they received exclusive tips from experts or even insiders. They induce unwary investors to buy shares at inflated prices, only to sell the shares at large profit margins, leaving victims with financial losses.
No pleas were made and he is now due to appear at the same court on 17 April 2023. “Tam was released on $1 million bail on the conditions that he must not leave Hong Kong; surrenders all travel documents and reports to police station on a regular basis,” the watchdog explains.
The SFC said the profile of financial fraud is changing as more people are being targeted online, moving away from the traditional cold call. Fraudsters are now contacting people through a range of popular social media sites, such as Facebook,…
