The Securities and Futures Commission (SFC) has banned Mr Danny Fung Kwong Shing, a former account executive of Fulbright Securities Limited (Fulbright Securities), from re-entering the industry for life and fined him $542,071 (Notes 1 & 2).

The disciplinary action follows an SFC investigation which found that between January 2013 and May 2014, Fung had:

  • conducted 772 unauthorized transactions in the account of his friend-cum-client, X, at Fulbright Securities;
  • fabricated telephone order recordings to mislead Fulbright Securities into believing that the orders for the transactions conducted in X’s account were placed by X; and
  • impersonated another friend-cum-client, Y, and placed orders in Y’s account at Enhanced Securities Limited by telephone.

The investigation also revealed that at least 53 of the above-mentioned unauthorized transactions were conducted by Fung under a premeditated scheme to secure profits for Y, with the result that Y made profits from these transactions at X’s expense by selling shares to X at prices higher than the purchase prices.

X suffered a substantial loss of around $2.6 million as a result of all the unauthorized transactions.

The SFC considers that Fung’s conduct was gravely dishonest and that he is not a fit and proper person to be licensed.



  1. The amount of the fine is equivalent to the amount of profit made by Fung for Y and the commission he gained from the unauthorized transactions.
  2. Fung was licensed to carry on Type 1 (dealing in securities) regulated activity under the Securities and Futures Ordinance.  He was accredited to Fulbright Securities during the periods from 1 September 2001 to 23 February 2005 and from 30 July 2008 to 6 November 2014.  Fung is currently not licensed by the SFC.