**********************************************************
The Market Misconduct Tribunal submitted its two reports to the Financial Secretary on July 9, 2012, and August 16, 2012, concerning its proceedings in relation to dealings in the shares of Sino Katalytics Investment Corporation (SKIC) (now known as Capital VC Limited) conducted on and between January 2 and 9, 2009.
The Tribunal was chaired by Mr Justice Michael Victor Lunn, JA, with Mr Ian Grant Robinson and Mr Joseph Li Chiu-wah as members.
The Tribunal determined that both Mr Duncan Chui Tak-keung and Mr Peter Yau Chung-hong were culpable of false trading, price rigging and stock market manipulation, contrary to sections 274(1)(b) and (3), 275(1)(b) and 278(1)(a) of the Securities and Futures Ordinance (Cap 571).
Pursuant to section 257(1) and section 262(2)(b)(v) of the Ordinance, the Tribunal made the following orders:
Mr Duncan Chui Tak-keung
(i) pursuant to section 257(1)(a) that, without the leave of the Court of First Instance, he shall not act as a director or in any way, whether directly or indirectly, be concerned or take part in the management of a listed company for the period of two years from August 20, 2012;
(ii) pursuant to section 257(1)(b) that, without the leave of the Court of First Instance, in Hong Kong he shall not, directly or indirectly, in any way acquire, dispose of or otherwise deal in any securities for the period of two years from August 20, 2012;
(iii) pursuant to section 257(1)(e) that he shall pay the Government the sum of $1,261,679; and
(iv) pursuant to section 257(1)(f) that he shall pay the Securities and Futures Commission the sum of $65,761.
Mr Peter Yau Chung-hong
(i) pursuant to section 257(1)(a) that, without the leave of the Court of First Instance, he shall not act as a director or in any way, whether directly or indirectly, be concerned or take part in the management of a listed company for the period of two years from August 20, 2012;
(ii) pursuant to section 257(1)(b) that, without the leave of the Court of First Instance, in Hong Kong he shall not, directly or indirectly, in any way acquire, dispose of or otherwise deal in any securities for the period of two years from May 23, 2013;
(iii) pursuant to section 257(1)(d) that he shall pay to the Government the sum of $16,200, being the profit he gained as a result of his market misconduct;
(iv) pursuant to section 257(1)(e) that he shall pay the Government the sum of $2,523,359;
(v) pursuant to section 257(1)(f) that he shall pay the Securities and Futures Commission the sum of $131,522;
(vi) pursuant to section 257(1)(g) that the Association of Chartered Certified Accountants be recommended to take disciplinary action against Mr Yau; and
(vii) pursuant to section 262(2)(b)(v) that a copy of the whole report of the Tribunal be provided to the Association of Chartered Certified Accountants.
The Tribunal proceedings in respect of SKIC involved two specified persons and the receipt of oral testimony from 23 witnesses. The Tribunal sat for 23 substantive hearing days.
Ends/Friday, August 17, 2012
Issued at HKT 17:30
NNNN