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SFC obtains interlocutory asset freezing order against Leung Anita Fung Yee Maria

Issue date: 2024-05-07 18:34:22

The Securities and Futures Commission (SFC) has obtained an interim injunction order at the Court of First Instance against Ms Leung Anita Fung Yee Maria, former chief executive officer and executive director of SMI Culture & Travel Group Holdings Limited (SMI Culture & Travel Group), following the hearing of a Mareva injunction application on 6 February 2024 (Note 1).

This is the first time where the SFC has obtained injunction orders of this kind in relation to an ongoing legal action under section 214 of the Securities and Futures Ordinance (SFO) (Note 2).

The aim of the SFC’s action is to preserve assets to satisfy any compensation order that the Court may impose at the conclusion of the SFC’s legal proceedings against Leung and two others (Note 3).

Under the order granted by the Court on 6 May 2024, Leung must not (i) remove from Hong Kong any of her assets; (ii) dispose of or deal with or diminish the value of any of her assets, whether within or outside Hong Kong, up to the value of $235,363,373. Leung is also prohibited to take any steps to implement the terms and/or proceed to completion of the two sale and purchase agreements she allegedly entered in August 2023 in relation to her two properties in Shanghai and Canada. The order against Leung would remain in place until the final determination of proceedings.

In granting this order, the Court is satisfied that the evidence put forward by the SFC has demonstrated that “Leung is adept at using an extensive network of corporate and offshore entities as nominees for channeling funds and for concealing her illicit activities” and in its view, Leung “would have little hesitation in dissipating assets to avoid the consequence of a judgment against her”.

The SFC’s Executive Director of Enforcement, Mr Christopher Wilson, said: “The SFC is determined to bring wrongdoers to justice and to hold them accountable for their misconduct. To this end, the SFC will not hesitate to bring the full force of its legal powers to bear upon wrongdoers to prevent them from escaping legal liability.”

End

Notes:

1. The principal business of SMI Culture & Travel Group – founded by Leung and Mr Philip Wong Yu Hong (deceased) – was providing media services including TV programme and production related services, TV advertising, and other public relations services in the People’s Republic of China. The company’s shares were listed on The Stock Exchange of Hong Kong Limited on 30 June 2004 and delisted on 21 March 2022.
2. The Mareva injunction application was first made by the SFC on 19 September 2023. Two interim injunction orders against Leung, temporary in nature, were granted by the Court on 22 September 2023 and 19 October 2023. For further details, please refer to the SFC’s press releases dated 25 September 2023 and 24 October 2023.
3. The SFC commenced legal proceedings under section 214 of the SFO in October 2019 against Leung and two other senior executives of SMI Culture & Travel Group. They are Wong, former chairman and non-executive Director, and Mr Tsiang Hoi Fong, former executive director. The date of the trial has yet to be fixed.

Source: SFC