The Eastern Magistrates’ Court today convicted Mr Chau Pak Yin, a finfluencer and previously known as Chau Kin Hei, for providing investment advice on a subscription-based chat group on Telegram he hosted without a licence in a criminal prosecution by the Securities and Futures Commission (SFC).
Chau was sentenced to six weeks’ imprisonment. He was also ordered to pay the SFC’s investigation costs.
The Court heard that between 16 April 2021 and 14 May 2021, Chau hosted a chat group on Telegram named “Futu真。財自Private Group” under his Telegram username “Futu大股東”. The Telegram chat group welcomed members of the public on paid subscription basis.
During the material time, Chau circulated commentaries, recommendations and target prices on various securities and responded to questions raised by paid subscribers of the Telegram chat group regarding the performance of securities listed on the Nasdaq. He charged members of the Telegram chat group a monthly subscription fee of US$200 or HK$1,560, earning subscription fees totalling HK$43,680.
The SFC’s Executive Director of Enforcement, Mr Michael Duignan, said:
“Finfluencers who are not licensed by the SFC may fail to meet the SFC’s required standards of conduct and accountability, potentially exposing investors to significant risks and harm. Therefore, investors should verify finfluencers’ regulatory status, exercise caution when considering their advice, and ensure that they fully understand the risks and key features of any investment opportunities touted via social media or online before making any financial commitments.”
Chau was remanded in custody after his bail application was rejected pending his intended appeal against conviction and sentence.
