SECURITIES AND FUTURES COMMISSION v. YIN YINGNENG RICHARD AND OTHERS

SECURITIES AND FUTURES COMMISSION v. YIN YINGNENG RICHARD AND OTHERS

The respondents were found to have acted dishonestly and breached fiduciary duties by fabricating a non-existent MUA and causing wrongful payment of company assets; disqualification under s214(2)(d) SFO is appropriate, and after weighing gravity, relative culpability, mitigation (including repayment), personal circumstances and lack of credit for late remorse, the court imposed disqualifications of 7 years on Wang, 5 years on Lee and 4 years on Yin and refused any exception permitting Wang to work indirectly in contravention of the disqualification.

Citation
SECURITIES AND FUTURES COMMISSION v. YIN YINGNENG RICHARD AND OTHERS
Parties
Petitioner: Securities and Futures Commission; 1st Respondent: Yin Yingneng Richard; 2nd Respondent: Lee Yiu Sun; 3rd Respondent: Wang Wen Ming; 4th Respondent: First China Financial Network Holdings Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
30 September 2015
Case Number
HCMP2502/2012
Procedural Posture
Disqualification Proceeding Under Section 214 of the Securities and Futures Ordinance / Post Judgment Disqualification Hearing and Decision
Outcome
Disqualification orders made against the respondents pursuant to s214(2)(d) SFO: Wang disqualified for 7 years, Lee for 5 years, Yin for 4 years; exception request to permit Wang to work in a mainland company rejected.
Legal Topics
Director Disqualification, Breach of Fiduciary Duty, Dishonesty, Remedies Under SFO S214, Mitigation and Sentencing Principles
Source Language
EN
Company Law Securities Regulation Directors' Duties Civil Remedies Director Disqualification Breach of Fiduciary Duty Dishonesty Remedies Under SFO S214 +1 more

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Parties

Securities and Futures Commission

Petitioner

Yin Yingneng Richard

1st Respondent

Lee Yiu Sun

2nd Respondent

Wang Wen Ming

3rd Respondent

First China Financial Network Holdings Limited

4th Respondent

Procedural Posture

Disqualification Proceeding Under Section 214 of the Securities and Futures Ordinance / Post Judgment Disqualification Hearing and Decision

Legal Issues

  1. 1 Whether respondents should be disqualified under s214(2)(d) SFO
  2. 2 Appropriate length of disqualification for each respondent
  3. 3 Assessment of relative culpability and mitigation

Ratio Decidendi

The respondents were found to have acted dishonestly and breached fiduciary duties by fabricating a non-existent MUA and causing wrongful payment of company assets; disqualification under s214(2)(d) SFO is appropriate, and after weighing gravity, relative culpability, mitigation (including repayment), personal circumstances and lack of credit for late remorse, the court imposed disqualifications of 7 years on Wang, 5 years on Lee and 4 years on Yin and refused any exception permitting Wang to work indirectly in contravention of the disqualification.

Court Disposition

Disqualification orders made against the respondents pursuant to s214(2)(d) SFO: Wang disqualified for 7 years, Lee for 5 years, Yin for 4 years; exception request to permit Wang to work in a mainland company rejected.

Orders

  • Wang Wen Ming is disqualified from being a director or being concerned in the management of a company incorporated in Hong Kong for 7 years pursuant to s214(2)(d) SFO
  • Lee Yiu Sun is disqualified from being a director or being concerned in the management of a company incorporated in Hong Kong for 5 years pursuant to s214(2)(d) SFO