A former securities dealer instructed firms to buy millions of shares on his behalf when he had only HK$7,000 in his bank accounts, a court heard yesterday.
After the share prices plunged, Jack Wong Wai-yi, 41, lied to evade payment to four firms, which suffered losses of HK$26.54 million, prosecutor Richard Donald said.
Wong has pleaded not guilty to five counts of evasion of liability by deception and one count of attempted evasion over the 1998 dealings.
The Court of First Instance heard Wong began a company as a fund manager in 1996 and in November that year became sole director and shareholder of Corbin Profits, registered in the British Virgin Isles.
In January 1997, Wong opened accounts with stock brokers Kim Eng Securities, Amsteel Securities, Wardley Securities and Sassoon Securities. Mr Donald said Wong conducted business with the four firms without incident during 1997 and most of 1998 on the basis that two days after he instructed share purchases, he would make payment.
But on September 14, 1998, Wong instructed the firms to make significant purchases of shares in Chi Cheung Investment, a publicly listed company.