SFC shuts down suspected boiler rooms

Added 18th January 2016

Hong Kong’s regulator has frozen a total of HK$600,000 in the bank accounts of three suspected boiler rooms.

SFC shuts down suspected boiler rooms

The three firms also had their activities stopped and websites suspended. They are:

--Waldmann Asset Management, using the website www.waldmann-asset-management.com

--Doyle Hutton Associates, using the website www.doyle-hutton-associates.com

--Cardell Limited and/or Cardell Company Limited, using the website www.cardell-limited.com

“The interim orders protect the monies in bank accounts held by Cardan Limited, Cedan Limited, Hamtron Limited and Mutual Hope Limited, which allegedly hold the proceeds of unlicensed or boiler room activities being carried out by Waldmann, Doyle and Cardell,” the SFC said in a statement.

“Boiler rooms usually claim to be licensed for regulated securities or futures business and issue related advertisements when they are not licensed or actually in that jurisdiction,” the SFC explained.

“The usual way a boiler room works is that they call investors claiming to be in Place A, but are actually in Place B. They ask the investors to invest in a financial product in Place C and to send money to an account in Place D.

“Often a boiler room will transfer money received from the investors from an account in one place to an account in another place almost as soon as it has been received. By the time the fraud has been discovered, the money has disappeared or been transferred out of reach.”

One year ago, the SFC also cracked down on three suspected boiler rooms.

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