In an unprecedented joint crackdown, Hong Kong and Macau authorities have arrested seven individuals, including the chairman and an executive director of a Hong Kong-listed company, over an alleged $15 million fraud scheme.
The Independent Commission Against Corruption (ICAC), Securities and Futures Commission (SFC), and Macau Judiciary Police conducted the operation against the Wai Hung Group, which provides fitting-out services for casinos, retail, hotels and restaurants.
According to a statement, the arrests are linked to “fictitious transactions and false accounting” related to the company’s projects in Macau. Authorities allege the chairman and others falsified business records and accounting to conceal the misappropriation of over $9 million in company funds.
Trading in Wai Hung shares was halted on Monday as the investigation unfolded across the border. This marks the first time Hong Kong and Macau have launched a joint crackdown on such cross-boundary financial crimes.
“The suspected misconduct may have also led to violations of the Securities and Futures Ordinance, including the disclosure of false or misleading information and other financial misconduct such as fraud and misfeasance,” the regulators said.
The Macau Judiciary Police have launched a parallel investigation into the fraud offenses that allegedly occurred in the gambling hub. Authorities did not provide further details on the ongoing probe.
The arrests come amid heightened scrutiny of corporate governance among Hong Kong-listed companies, especially those with substantial mainland operations. The ICAC and SFC said the investigation is continuing. (source: government news info)
