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 at Chief Securities and had worked as a trader for the firm for about six months. He was arrested on suspicion of theft on Monday.
The SCMP learned that the suspicious investments were believed to have 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.
The source said a preliminary assessment put the related losses at about HK$150 million.