Courts first in ramp-and-dump fraud scheme

The district court yesterday granted an application from the Department of Justice to consolidate an existing ramp-and-dump case involving a highly sophisticated syndicate with another case transferred, in a first, from the Eastern magistrates'courts.

The three defendants - suspected core syndicate members Stevens Yip Chi-fai, So Lung-ying and Lau Ka-wing - are charged with conspiracy to employ a scheme with intent to defraud or deceive in transactions involving securities.

All three have not made pleas and the case has been adjourned to July 25.

Yip, Lau and So were granted a cash bail of HK$500,000, HK$400,000 and HK$50,000, respectively, on the conditions they remain here, surrender their travel documents, reside at their reported address and inform police of any change in address.

Meanwhile, the Securities and Futures Commission and Hong Kong Exchanges and Clearing (0388) have joined hands in an enforcement action against China Ecotourism Group (1371) over dubious investment and financial arrangements involving numerous loans and an equity acquisition.

Authorities have raised serious concerns over the alleged misconduct and HKEX has taken disciplinary action against the firm and its seven current and former directors.