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Foreign exchange market

Forex duo's sentences suspended

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Two directors of Canwell Forex International received suspended sentences for submitting false bank account information that allowed them to obtain a trading licence from the Securities and Futures Commission.

Deputy Judge Stephen Geiser jailed Cheng Chi-sin and Lam Shu-man for six months suspended for 18 months.

Cheng, 44, was fined $80,000 and Lam, 35, was fined $60,000, the District Court heard.

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Prosecutor Gramsci DiFazio said the defendants applied for a leveraged foreign exchange trader licence in 1994.

They submitted and signed documents required by the SFC, claiming the firm had sufficient funds to be eligible for the trading licence.

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The prosecution said the pair claimed Canwell had between $28 million and $32 million in the bank. The legal requirement is $25 million.

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