NH Investment & Securities Executive, Spouse, and Others Reported to Prosecutors for Using Undisclosed Information

Unfair Gains from Buying Shares of 15 Listed Companies
Second Case by the Joint Response Team
Maximum Legal Fines for Secondary and Tertiary Information Recipients

The financial authorities have reported eight individuals, including an executive of NH Investment & Securities, the executive's spouse, and acquaintances, to the prosecution for using undisclosed information to concentrate purchases of shares from 15 listed companies and making unfair profits. In addition, secondary and tertiary recipients of the information were also fined the maximum penalty allowed by law.

On May 20, the Securities and Futures Commission (SFC) of the Financial Services Commission announced at its 10th regular meeting that it had resolved to take these actions for violations of the “Capital Markets and Financial Investment Services Act.” This is the second case handled by the “Joint Response Team for Eradicating Stock Price Manipulation.”

The eight individuals, including the securities firm executive and spouse, were found to have used undisclosed information, such as details of tender offers obtained during the course of their work between May 2023 and September 2025, to heavily purchase shares of 15 listed companies. They then sold all the shares after the information was made public, making unfair profits. In addition, eight individuals who received this undisclosed information were also found to have purchased shares at low prices and sold them after public disclosures, such as tender offers, led to stock price increases, thereby realizing profits and significantly disrupting market order.

Accordingly, the SFC has collectively reported the securities firm executive and information recipients to the prosecution, and imposed the maximum fine allowed by law on secondary and tertiary recipients who traded shares after receiving undisclosed information. Secondary recipients will be required to pay 1.5 times the amount of unfair profits, while tertiary recipients will be required to pay 1.25 times the unfair profits. A Financial Services Commission official emphasized, “This case serves as a warning that stock price manipulation can lead to financial ruin, raising awareness in the market.”

In particular, this case involved sophisticated methods: the securities firm executive concealed illegal activities by using borrowed-name accounts under the names of spouse's acquaintances, and the spouse further mimicked this by using another borrowed-name account under an acquaintance’s name. The executive in question has now been dismissed as a disciplinary measure.

The Joint Response Team tracked funds and executed search and seizure operations to identify the true owners of multiple securities accounts and clarify the links between the conspirators. The authorities plan to fully cooperate with the ongoing prosecution investigation into the eight individuals accused of using undisclosed material information, and will continue to implement follow-up measures without delay. Depending on the results of the investigation, fines up to twice the amount of unfair profits may be imposed on these individuals.

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