In Hong Kong the official markets regulator with the help of the police has charged 13 suspects for the operation of a pump-and-dump scheme. The Securities and Futures Commission (SFC) along side the police states that the individuals are suspected of committing financial offences.
The statements released by the authorities details that the perps executed their schemes on two Hong Kong-listed firms, by promoting stocks via social media channels and tinkering with the stock numbers and volumes.
The stock prices were pumped to a suspicious degree, and then abruptly sold off for profits. As a consequence the stocks’ price collapsed. At the time of writing this, the scope of the fraud has not been given any numerical value.
The syndicate in question allegedly has committed money laundering and market manipulation. 5 of the suspects might be charged on several accounts of conspiracy to defraud participants in the securities market matrix. A total of ten of the scam’s participants are facing money laundering charges.
The joint investigation was led by local law reinforcements and the SFC, and aimed to crack the investment fraud. The five main suspects had been working with the rest of the perps between October 2018 and May 2019, during which they targeted the stocks of the companies.
Currently, the perps are now on bail; their bail bonds range between HK$50,000 to HK$1 million, and at this time are forbidden from leaving the city state.