On 12 May 2021, the Court of First Instance granted orders sought by the Securities and Futures Commission (“SFC”) against boiler room fraudsters to compensate 75 investors who fell victim to the scams.
The factual matrix is that there were three unlicensed entities purportedly based in and operating from Hong Kong, namely (1) Broadspan Securities, (2) Shepherds Hill Partners and (3) Rich Futures (HK) Limited. The three unlicensed entities solicited investors through cold calls, to open trading accounts on their websites and to invest in securities and/or futures in 2014. They also asked investors to deposit funds purportedly for their investments into six bank accounts in Hong Kong.
Upon investigation, it was found that none of the investments in securities and/or futures products agreed with the investors were ever executed on any recognized exchange, nor were these investors able to recover any of their monies.
In light of the above, the Court…