Hong Kong Police Make Fourth Arrest in China Metal Investigation
Stock Chart for China Metal Recycling Holdings Ltd (773)
A 47 year-old man surnamed Chun was arrested yesterday on suspected false accounting and detained for further investigation, the police said in a statement. Alexander Lee, a lawyer representing China Metal’s Chairman Chun Chi Wai, didn’t immediately answer calls to his office and mobile phone.
The Securities and Futures Commission won a court order last month to appoint provisional liquidators to the company after it found evidence China Metal inflated the size of its business in its 2009 initial public offering. The liquidator sued Chun and his wife, Lai Wun Yin, for fraud, according to a lawsuit filed on July 31 at Hong Kong’s High Court.
A 37 year-old man surnamed Fung, a 46 year-old man surnamed Lam and a 42 year-old woman surnamed Lai were arrested last month relating to the case. All three are on bail, according police statements.
Shares of China Metal traded in Hong Kong have been suspended since January. Chun and Lai founded the company in 2000, according to the company’s website.
The liquidator’s case is HCA1412/2013 and the SFC case is HCCW 210/2013. Both are in Hong Kong’s Court of First Instance.
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