Broker busted for penning articles to bump stock prices

The New York Times’ Dealb%k reports that a Hong Kong stockbroker who wrote a financial column has been busted for using his articles to whip up interest in stocks he would later profit from.

“The Securities and Futures Commission found that on 25 occasions from March 2009 to March 2010, [Sky] Cheung bought stocks through an undisclosed account registered in his wife’s name and, shortly afterward, published newspaper columns talking up those stocks. ‘Cheung put himself in a conflict-of-interest position by purchasing the stocks shortly before favorable comments were published in his column, and sold them at a profit shortly after publication of the column,’ the commission said in a statement.”

Read the rest here.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.