HK ICAC HKEX IPO Bribery Sceme

On Mar. 25, HK ICAC charged HKEX executives for bribery in IPO.

  • Ex-HKEX executive and consultant charged re bribery misconduct in public office MIPO.
  • Involved total of HK$9.15mn, taken from IPO applications of various listed companies.
  • Case arose from corruption complaint referred by SFC, and HKEX have assisted ICAC.
  • Defendants
  • Eugene Yeoh, from IPO vetting team of listing department, faces 2 charges re scheme.
  • He vetted applications for compliance and endorsed the approval or rejection before IPO applications were tabled to the listing committee or GEM Listing Approval Group.
  • Richard Lum, consultant, assisted companies who intended to make IPO applications.
  • Alleged Violations
  • From Jun. 20, 2017 to Apr. 30, 2019, Yeoh willfully misconducted himself in the course of, or in relation to, his public office, without having reasonable excuse or justification.
  • Yeoh concealed from or failed to declare the transfer of $9.15mn from Lum to his wife.
  • Failed to declare conflict of interest, on handling IPO applications Lum participated in.
  • Also failed to abstain from deliberation and decision making on those IPO applications.
  • Yeoh accepted from Lum a sum of $2 million, as an inducement to or reward for being or remaining favorably disposed to, the IPO application of Shen You Holdings Limited.
  • Settlement
  • Defendants will be brought to the West Kowloon Magistracy on 3/25/2020 for mention.
  • Government statement
  • HK Government statement that they will not tolerate bribery and corruption, and spare no effort in safeguarding the integrity and robustness of the HKEX IPO vetting process.

Regulators HK ICAC; HK SFC; HK Treasury; HKEX
Entity Types B/D; Exch
Reference PR, 3/25/2020
Functions Anti-Bribery; Compliance; C-Suite; Financial; HR; Legal; Reporting; Trading
Countries Hong Kong
Products Issuance/IPO; Securities
Regions AP
Rule Type Enforcement
Rule Date 3/25/2020
Effective Date 3/25/2020
Rule Id 74485
Linked to N/A
Reg. Last Update 3/25/2020
Report Section AML & Enforcement

Last substantive update on 03/26/2020