Jonathan Ah-weng pioneered a first in the Hong Kong landscape by acting for the Securities and Futures Commission in the first ever criminal conviction for securities fraud via illegal short selling under section 300 of Securities and Futures Ordinance (Cap.571). In a landmark case, Jonathan was able to secure a conviction under this section when the Defendant falsely represented to a brokerage that she held 15 million shares in a HK listed company, when she did not. Another brokerage allegedly verified her possession of the non-existent shares. The Defendant then caused the first brokerage to sell 15 million shares in the listed company, and later she purchased the same shares at a discount. In sentencing, the Court considered a number of important factors including the effect on Hong Kong as a financial centre and investors’ confidence, the risk to the brokerage, as well as the sophisticated nature of the offence, and sentenced the Defendant to 18 months imprisonment.
