Four more arrested over 'ramp and dump' stock scam

Local | 22 Apr 2021 7:11 pm

Four people have been arrested today for offenses of conspiracy to defraud in a follow-up operation after the police force and the Securities and Futures Commission smashed an active and sophisticated syndicate suspected of operating “ramp and dump” manipulation schemes early last month.

Officers search the office premises of a Hong Kong-listed company and the residences of its senior executives, arresting the four, aged between 26 and 63 years.

They included three senior executives of the listed company who are alleged to have conspired to use bogus transactions to embezzle funds of the company involving over $19 million.

All arrested persons are now detained for further enquiries.

In early March, a dozen people were arrested for alleged stock manipulation. They were accused of running the "ramp and dump" scam where certain stocks are hyped up and then recommended to people via messaging apps, before the fraudsters suddenly sell their own holdings, leaving other investors out of pocket.

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