The Securities and Futures Commission (SFC) has revoked the registration of a dealer's representative for misconduct that resulted in three clients suffering $3.69 million in losses. The commission said it had revoked the registration as a dealer's representative of Yip Wai-leung, formerly employed by Prosperous Securities. The action stemmed from an investigation between November 1996 and last December, when Yip was general manager of Prosperous Securities. It found he had used the accounts of three clients to trade securities without their authority. He illegally sold shares belonging to the three clients, resulting in losses of $3.69 million. Yip was also found to have created false documents that showed the clients' accounts had been settled. The SFC concluded Yip was guilty of serious misconduct. It is understood the three clients will receive compensation from the securities house. Meanwhile, the SFC publicly reprimanded Cheung Hon-chung, a securities dealer's representative of collapsed CA Pacific Securities. The SFC found Cheung had condoned and facilitated unregistered dealing of two employees of CA Pacific when he was the brokerage's branch manager of Shamshuipo Branch from July 1997 to January 1998. Cheung pleaded guilty on Tuesday at Western Magistracy to the same misconduct and was fined $10,000 and ordered to pay costs of $6,500 to the SFC.