Enforcement
Mega Securities and employees punished for violation of securities laws
2021-05-12
I. Date of penalty: 2021.05.12
II. Offenders of punishment: Mega Securities Corporation (hereinafter referred to as“Mega Securities”) and sale agent LEE ○○ of Mega Securities.
III. Legal reference: Article 56 and Sub-paragraph 4 of Paragraph 1 under Article 178-1 of the Securities and Exchange Act, Paragraph 1, Sub-paragraphs 10 and 11 of Paragraph 2 under Article 18 of the Regulations Governing Responsible Persons and Associated Persons of Securities Firms and Paragraph 2 under Article 2 of the Regulations Governing Securities Firms.
IV. The offense and the facts:
(I) Taiwan Stock Exchange Corporation conducted an examination on Zhongxiao Branch of Mega Securities in the period of 2020.06.24 to 2020.07.17 and discovered that sale agent LEE ○○ of the company has enticed customer PENG ○○ and HSU ○○ to invest in stocks as the pre-text but indeed lured the customers to directly remit the fund for investment into his personal bank account and never deliver the shares or return the fund in full amount to the customers. In addition, LEE ○○ even sold the shares from the account of HSU ○○ without order of the customer and forged a screenshot showing the shares on inventory in order to cheat HSU ○○. These are acts of defiance of integrity and breach of trust.
(II) Mega Securities failed to properly pursue its internal control system that resulted in the aforementioned deficiencies and is also a violation of Paragraph 2 under Article 2 of the Regulations Governing Securities Firms.
V. Ruling: Pursuant to Sub-paragraph 4 of Paragraph 1 under Article 178-1 of the Securities and Exchange Act, Mega Bank was punished with a fine amounting to NT$240,000. Also, according to Article 56 of the same law, Mega Securities was ordered to dismiss the aforementioned sale agent, LEE ○○.
II. Offenders of punishment: Mega Securities Corporation (hereinafter referred to as“Mega Securities”) and sale agent LEE ○○ of Mega Securities.
III. Legal reference: Article 56 and Sub-paragraph 4 of Paragraph 1 under Article 178-1 of the Securities and Exchange Act, Paragraph 1, Sub-paragraphs 10 and 11 of Paragraph 2 under Article 18 of the Regulations Governing Responsible Persons and Associated Persons of Securities Firms and Paragraph 2 under Article 2 of the Regulations Governing Securities Firms.
IV. The offense and the facts:
(I) Taiwan Stock Exchange Corporation conducted an examination on Zhongxiao Branch of Mega Securities in the period of 2020.06.24 to 2020.07.17 and discovered that sale agent LEE ○○ of the company has enticed customer PENG ○○ and HSU ○○ to invest in stocks as the pre-text but indeed lured the customers to directly remit the fund for investment into his personal bank account and never deliver the shares or return the fund in full amount to the customers. In addition, LEE ○○ even sold the shares from the account of HSU ○○ without order of the customer and forged a screenshot showing the shares on inventory in order to cheat HSU ○○. These are acts of defiance of integrity and breach of trust.
(II) Mega Securities failed to properly pursue its internal control system that resulted in the aforementioned deficiencies and is also a violation of Paragraph 2 under Article 2 of the Regulations Governing Securities Firms.
V. Ruling: Pursuant to Sub-paragraph 4 of Paragraph 1 under Article 178-1 of the Securities and Exchange Act, Mega Bank was punished with a fine amounting to NT$240,000. Also, according to Article 56 of the same law, Mega Securities was ordered to dismiss the aforementioned sale agent, LEE ○○.
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- Update: 2021-05-14