According to allegations by the Securities and Futures Commission (SFC), Billion Global created a website to promote a fund which it claimed was managed by Chan. The fund had returned 45% between November 2009 and February 2010, it said. However, the fund did not exist and neither Billion Global nor Chan were authorised to carry out the activities required.
During the stated period, Chan was accredited to Quam Securities and licenced under the Securities and Futures Ordinance to carry out regulated activity types: one (dealing in securities), four (advising on securities) and nine (asset management). But he was not authorised to carry out regulated activity for Billion Global. All of his licences were revoked on 9 Sept, 2010.
Billion Global and Chan were fined $20,000 and ordered to pay investigation costs of $40,004.
According to Mark Steward, the SFC’s executive director of enforcement, the commission’s action prevented any members of the public from being duped by the scam.
“The SFC reminds investors that claims of high returns – such as the 45% growth claimed in this case – are self-evidently suspicious, meaning there are very high risks involved or the claim is false,” the commission said.
“The SFC also reminds investors to check the SFC’s Public Register of Licensed Persons and Registered Institution at www.sfc.hk to ensure that people who provide advice on asset management are properly licensed.”
