The Securities and Futures Commission (SFC) has made tremendous efforts to tackle ramp-and-dump cases in recent years. Other than collaborating with other local law enforcement agencies such as the Hong Kong Police and the Independent Commission Against Corruption (ICAC), the SFC has sought assistance from overseas authorities in surrendering a ramp-and-dump suspect to Hong Kong for the first time.
As discussed in our earlier article – Latest Trends in Hong Kong SFC Enforcement: Key Insights and Developments, ramp-and-dump is a type of market manipulation where individuals use numerous accounts to corner and “ramp” up the price of a listed stock, and “dump” the shares to other investors at an artificially high price. As there is no longer demand for the shares, the share price would then collapse.
From 2023 to 2024, close to 30 individuals, including 24 individuals involved in a large-scale, sophisticated ramp-and-dump syndicate, were brought to the criminal courts for ramp-and-dump market manipulation.
Recently, the SFC sought assistance from overseas authorities in naming a ramp-and-dump suspect on the INTERPOL Red Notice and surrendering such individual wanted for prosecution for an offence under the Securities and Futures Ordinance (Cap 571). The relevant individual was suspected to have conspired with other individuals in a ramp-and-dump scheme. She fled Hong Kong after the SFC searched her residence in late 2022. The SFC subsequently applied to the Hong Kong Court for an arrest warrant.
In July 2024, upon the Department of Justice of Hong Kong’s application to the Attorney-General’s Chambers of Singapore, the Singapore Police Force arrested the suspect. She was subsequently surrendered to Hong Kong, and is now remanded in custody. The SFC has applied for the ramp-and-dump case to be transferred to the District Court of Hong Kong.
Other than pursuing legal action against ramp-and-dump suspects, the SFC also combats against ramp-and-dump cases by freezing the assets of the suspects.
These serve as a reminder the SFC is committed to cracking down on market misconduct in Hong Kong, even if the suspects have left Hong Kong. For further information about the matter, please refer to the news published on the SFC website.
We have represented clients in regulatory investigations and prosecution, including ramp-and-dump cases. Contact us today for further information on best practices, and to learn more about how our team can help you navigate the complex legal and regulatory landscape.
Tiffany Lee, Of Counsel
(E: tiffanylee@hkytl.com T: +852 3468 7038)
This article is introductory in nature. Its content is current at the date of publication. It does not constitute legal advice and should not be relied upon as such. You should always obtain legal advice based on your specific circumstances before taking any action relating to matters covered by this article. Some information may have been obtained from external sources, and we cannot guarantee the accuracy or currency of any such information
