Administrators appointed to receive and distribute proceeds of boiler room frauds in 6 bank accounts to compensate 75 investors

On 2 June 2021, the Court of First Instance granted orders sought by the SFC under section 213 of the Securities and Futures Ordinance against 3 unlicensed entities purportedly based in Hong Kong which defrauded 75 investors. The unlicensed entities solicited investors through cold calls to open trading accounts on their websites (www.broadspansecurities.com ; www.shepherdshillhk.com ; www.richfutureshk.com ) and asked them to deposit funds into 6 Hong Kong bank accounts. None of the investments in securities and/or futures products agreed with the investors were executed on any recognised / licensed exchange.

The recent orders follows injunctions obtained by the SFC in December 2014 to freeze the 6 bank accounts held by the boiler room fraudsters and orders obtained by the SFC in January 2015 restraining them from carrying on unlicensed activities. Administrators have been appointed by the High Court to receive proceeds in the 6 bank accounts in the sum of approximately HK$4.3 million for distribution to the 75 investors on a pro rata basis.

See the judgment of Deputy High Court Judge Maurellet SC:-


23 June 2021
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