Hong Kong's Eastern Magistrates’ Court has convicted Mr Simon Chan Ying Ming, a former officer of Wonderful Wealth Group Limited (WWGL), of engaging in a business of dealing in futures contracts and asset management without a licence in a criminal prosecution brought by the Securities and Futures Commission.

Chan, who pleaded guilty to all four charges, was fined HK$20,000 (US$2,536) and ordered to pay the SFC’s investigation costs.

The SFC alleged that between July and September 2012, Chan had represented to two investors that WWGL operated a business of trading in futures contracts and options and solicited them to invest in a WWGL-operated investment scheme which guaranteed a monthly rate of return of 5% in three months’ time.

Chan told them that WWGL would use their funds to trade futures contracts and options in WWGL’s trading accounts. The two investors invested a total sum of HK$850,000 in the investment scheme and they suffered losses of around HK$710,000.

The SFC also alleged that Chan had aided, abetted, counselled, procured and induced WWGL to hold itself out to the investors as carrying on a business of dealing in futures contracts and asset management or that the offence by WWGL was committed with the consent, connivance of or was attributable to recklessness of Chan. WWGL was dissolved in November 2017.