The Securities & Futures Commission has reprimanded Lippo Securities and suspended three licensed representatives, after investigations into the unusual price movement of Fortuna International Holdings shares from January 2 to May 10, 2002.

Han Sze Chao, a licensed representative and former responsible officer of Lippo Securities, has accepted an 18-month suspension for market manipulation.

Lippo Securities has accepted a public reprimand for failing to detect abusive trading activities. The commission found it did not have sufficient measures in place to identify the abusive trading activities. It failed to detect that Han had engaged in improper trades to peg and stabilise the price of Fortuna shares just before market close. As a result, Lippo breached the code of conduct on the monitoring of staff accounts.

Cuthbert Chan and Angie Yeung, both Lippo licensed representatives, accept a suspension of their licences for 10 weeks and five weeks for facilitating Han's abusive trading. They executed Han's questionable orders without reporting them.

The commission felt it in the public and investor interest to settle its disciplinary actions against Han, Lippo, Chan, and Yeung.