Lawyers call for SFC to explore criminal probe into Apex deal
Lawyers say there is 'public expectation' probe will continue into Cheung Kong hotel suites sales
Lawyers have urged the securities regulator to continue exploring the potential for a criminal investigation into Cheung Kong's controversial sales of hotel suites in Kwai Chung despite its pact with the developer to cancel the sales.
Their call came as it emerged that the Department of Justice, which has the final say over prosecutions, had not been consulted over the case.
A spokeswoman for the department confirmed that it had not been informed of the matter, while reasserting its authority.
"Save in the limited circumstances where the [commission] can prosecute certain criminal offences … the DoJ has the authority to control criminal prosecution under article 63 of the Basic Law," the spokeswoman said in reply to an inquiry by the Sunday Morning Post.
She said that depending on the nature of a case, there would be communication between the two bodies where circumstances required.
Last week, both the Securities and Futures Commission and Cheung Kong announced they had reached an agreement for the developer to cancel the sales of all 360 hotel rooms in Apex Horizon and refund deposits along with interest and legal expenses.
The SFC said its investigation found the deals could have breached laws relating to unauthorised collective investments. The agreement avoided the need for civil proceedings to seek a court order to undo the sales, the commission said.