Hong Kong trader held after unauthorised investments spark HK$150m brokerage loss
Source says suspect is 26-year-old investment manager at Central firm who worked as trader for about six months
Hong Kong police have arrested a man on suspicion of making unauthorised investments using assets from a securities brokerage, resulting in an estimated loss of HK$150 million (US$19.1 million), the South China Morning Post has learned.
A source said on Tuesday that the suspect was a 26-year-old investment manager who had worked as a trader for about six months. He was arrested on suspicion of theft on Monday.
The insider later said the firm was a wealth investment company operating from World Wide House in Central.
The SCMP learned that the suspicious investments allegedly occurred between January 9 this year and Monday, with the investment manager allegedly using company assets and representing the firm without authorisation.
“Later, due to decreasing stock prices, the company suffered losses,” the source said.
The suspicious activity was uncovered after the securities firm conducted audits, prompting a company director to report the case to police.