The Eastern Magistrates’ Court yesterday convicted Chong Kin Ting, former director and shareholder of Wonderful Wealth Group (WWG), for carrying on a business of dealing in futures contracts and asset management without a licence, according to a statement from the Securities and Futures Commission (SFC).
The criminal prosecution was brought by the SFC, the statement added.
Chong, who pleaded guilty to all four charges, was fined HK$8,000 ($1032) and ordered to pay the SFC’s investigation costs, the statement noted.
The SFC alleged that between June and September 2012, Chong represented to two investors that the firm operated a business of trading in futures contracts and options and solicited them to invest in a WWG-operated investment scheme which guaranteed a monthly rate of return of 5% in three months’ time, according to the statement.
“Chong told the investors that the firm would use their funds to trade futures contracts and options in WWG’s trading accounts.
“The two investors invested a sum of HK$500,000 in the investment scheme and they suffered losses of around HK$300,000,” the statement said.
Moreover, the SFC alleged that Chong aided, abetted, counselled, procured, and induced WWG to hold itself out to the investors as carrying on a business of dealing in futures contracts and asset management.
Chong and WWG have never been licensed with the SFC in any capacity or in relation to any regulated activity and WWG was dissolved in November 2017, the statement added.
