Former HSBC broker gets lifetime ban for defrauding clients of HK$70m

PUBLISHED : Friday, 30 December, 2016, 12:15am
UPDATED : Friday, 30 December, 2016, 9:14am

A former HSBC broker who defrauded the bank’s clients to the tune of HK$70 million has been slapped with a lifetime ban by the securities regulator.

The Securities and Futures Commission said Lam Yuk-wai’s actions of “dishonesty” meant he would be prevented from ever re-entering the industry.

Over a four-year period between September 2011 and July last year, an investigation by the securities regulator found that Lam had conducted around 100 unauthorised transactions which affected seven clients, amounting to substantial losses for his victims.

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The ex-broker, who worked for HSBC Broking, lied to clients about the value of their investments in a bid to conceal the extent of their losses.

The fraudulent transactions stopped in July last year when the bank reported Lam to the regulator.

Lam had attempted to conceal his actions by faking telephone calls and conversations with clients to cover his unauthorised transactions.

Lam is no longer employed by HSBC, but the bank paid out more than HK$70 million to the affected clients to compensate for their losses. HSBC Broking reported the case to police.

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In a statement, the Securities and Futures Commission said: “The commission considers that Lam’s dishonesty calls into serious question his fitness and properness to be a licensed person and decided to ban him for life.”

A HSBC spokesman added: “The individual is no longer employed at HSBC. HSBC expects its employees to work to the highest industry standards. We do not tolerate illegal or unprofessional behaviour.”

Before his fraudulent actions, Lam had a clean disciplinary record with the commission.