Chung Hwa Development chairman Kwok Ying-chuen has been successfully prosecuted by the Securities & Futures Commission (SFC) for failing to disclose trading in his company's shares. On five occasions between July 23 and August 29, 1996, Kwok failed to notify the stock exchange within five days of his acquisition of a total of 4.58 million Chung Hwa shares, as required by the Securities (Disclosure of Interests) Ordinance. Kwok was fined $20,000 and ordered to pay costs of $22,468 to the SFC. SFC executive director of enforcement Mark Dickens said all directors and substantial shareholders of listed companies had a duty to notify the stock exchange of any changes in shareholding to ensure the market remained fully informed. The SFC also said yesterday it had successfully prosecuted Lau Cheung-on for unregistered securities dealing. The SFC found that between April 3, 1995, and September 6, 1996, Lau introduced 70 clients to Chuangs & Co via Tsi Ki-fun, a former dealer representative of Chuangs & Co. Lau handled all the clients' trading including passing their orders to Tsi and arranging for settlement of the trades. Tsi would then give Lau half of the 0.2 per cent commission she received from Chuangs & Co. The SFC's prosecution of Lau stemmed from an investigation into the activities of Tsi, whose registration as a dealer's representative of Chuangs was revoked on December 4, 1996, for misappropriating securities from three of Chuangs' clients. Tsi was convicted in the District Court on September 25 and sentenced to 18 months in jail.