Hong Kong’s Securities and Futures Commission (SFC) reported on 19, December 2014, to have obtained interim injunctions in the Court of First Instance, granting Hong Kong regulator permission to freeze bank accounts connected to fraudsters through which funds are suspected to have been received from investors in alleged boiler rooms activities.
Boiler rooms usually claim to be licensed by appropriate regulatory bodies to carry out securities or futures business activities but are in actual sense unregulated in their jurisdictions.
The ceased funds totaling $4.3 million are held in the bank accounts of six entities which are; Timeprime Limited; Lynwin Limited; Resmart Limited; Fieldmark Corporation Limited; DH Corporation Limited and SMD Partnership Limited and are suspected to be used by following the firms to run their fraudulent boiler room activities:
- Broadspan Securities (Broadspan) ;www.broadspansecurities.com;
- Shepherds Hill Partners, Hong Kong (Shepherds Hill); www.shepherdshillhk.com; and
- Rich Futures (HK) Limited (Rich Futures) ; www.richfutureshk.com
The second hearing of the case was held today with a conclusion that the bank accounts will remain in lock pending when the final hearing of the SFC’s application against all the parties is reached, the date of which is yet to be made public.