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Three Charged With Holding False Papers in HKMEx Probe

Three men arrested as part of a probe into the failed Hong Kong Mercantile Exchange were charged today with having false documents including letters related to a $460 million cheque and $11 million of funds.

Kowloon City Magistrate Clement Lee denied bail to the men, all from mainland China, and adjourned the hearing. No mention of HKMEx was made in the charges or in court.

HKMEx lost its trading license last week after the Securities and Futures Commission determined it didn’t have sufficient financial resources. The regulator found “serious” suspected irregularities in the financial affairs of the company and referred the case to the police.

HKMEx Chairman Barry Cheung, its founder and largest shareholder, has said the three men aren’t current or former employees. Cheung, who ran the 2012 election campaign for the city’s Chief Executive Leung Chun-ying, has taken a leave of absence from all public positions including his membership of Leung’s Executive Council.

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