Celebrity chef Wong Wing-chee has been arrested for using manipulative tactics to push up stock prices of the catering company Dragon King GP (8493), sources said.
Wong, 62, is nicknamed "Chee Gor" or "Brother Chee". He is a renowned chef who frequently appeared on cooking TV shows.
Wong has been arrested for his involvement in "ramp and dump manipulation" of stock prices, or so-called "WeChat girls investment scams”, reported Sing Tao Daily, the sister publication of the Standard.
In the scams, WeChat account users -- often disguised as pretty women – call upon investors to buy or sell certain stocks by claiming they receive exclusive tips from experts, or even insiders.
They spread their recommended listed companies on WeChat, the top messaging application on mainland, in a bid to drive up share prices and induce unwary investors to buy shares at boosted prices. The scammers then sell the shares with big profits, leaving victims with financial losses.
It is understood Securities and Futures Commission joined hands with police in the operation. Both the commission and Dragon King refused to comment.
Dragon King announced that Wong resigned as an executive director and chief executive officer in July, and resigned as a company director in September. His wife has also resigned.
The company has suspended trading since November 11, pending announcement of its third quarter results. Its share price closed at HK$0.082.
Back on June 10 this year, the stock price of Dragon King plunged for 80 percent from HK$2.2 to HK$0.248 amid reports that the catering group recommended its shares via stocks speculation groups.
Public records showed Wong sold the group's shares four times since June, fetching an estimated HK$86.4 million. He and his wife no longer held any shares of the company after the last sale on August 24.
For the year ended December 2020, Dragon King operated ten Cantonese restaurants in Hong Kong, Macau and Shanghai. The restaurants are under five brands -- Dragon King, Dragon Seal, Dragon Gown, Imperial Seal and Dragon Feast.
