Nerico Brothers Limited (HK)

This relates to the collapse of Target Insurance (Holdings) Ltd (ex-6161) and its insurance subsidiary ("Company X" in the SFC's statement). Surely there should be criminal charges against someone for fraud.

This relates to the collapse of Target Insurance (Holdings) Ltd (ex-6161) and its insurance subsidiary ("Company X" in the SFC's statement).

She was dealing through an undisclosed brokerage account at the now-defunct Nerico Brothers Ltd.

The Mareva injunction against Mr Ng Yu is continued. The court rules that Deputy High Court Judge Steven Ashley Burns SC "singularly failed to take into account the undisputed evidence that (a) the 1st defendant is the sole beneficial shareholder of the 2nd to 5th defendants, and also a director of the 3rd to 5th defendants, and (b) the 1st defendant and 6th defendant were acquainted and the latter had previously worked for the 1st defendant in his attempt to acquire NBL through the 5th defendant".

It suspects a fraudulent scheme to misappropriate US$154m under the guise of securities and spot FX trading, between June 2020 and September 2021. The unnamed company is almost certainly Target Insurance (ex-6161) which imploded after depositing US$154m with Nerico Brothers Ltd. Ex-Chairman Mr Ng Yu was earlier alleged by the bust insurer to be the "central figure in the fraudulent scheme".

This follows their conviction for corruption in Aug-2022. They received suspended jail terms on 8-Sep-2022 after the judge criticised the ICAC and Department of Justice for the long delay in bringing the prosecution. They were first arrested in Sep-2016 but not charged until Aug-2021.

Nerico's Notice of Appeal is struck out.

The Plaintiff is granted leave to appeal against the decision of Deputy High Court Judge Stephen Ashley Burns SC to lift the injunction against Ng Yu, and a stay of his order is granted pending appeal.

Deputy Judge Steven Ashley Burns SC discharges the injunction against Mr Ng Yu.

The petitioner, Target Insurance Co Ltd, is owed over US$154m (HK$1203m). The petitioner is owned by Target Insurance (Holdings) Ltd (6161), the shares of which have been suspended from trading since 5-Jan-2022. The amount represents about 188% of the group's net assets at 30-Jun-2021. Nerico says it has been trying to recover the money from "Four Dimensions Global Strategy Fund".

The plaintiff, now under managers appointed by the Insurance Authority, alleges a "massive fraud perpetuated" (sic) by Mr Ng Yu and Jerff Lee Cheuk Fung and that Mr Ng is the "central figure in the fraudulent scheme". Mr Ng is Chairman of both Target Insurance (Holdings) Ltd (6161) and Amber Hill Finance (0033). The insurer deposited funds with Nerico Brothers Ltd which were allegedly "dissipated to various corporate vehicles owned by" Mr Ng, including Neo Tech Inc and Amber Hill Capital Ltd.

The brokerage changed its name to "Nerico Brothers Limited" 2 years ago.

Mr So is granted leave to file an amended statement of claim after his earlier claim was struck out.

Judge Conrad Seagroatt calls the Statement of Claim "rambling, disordered, incoherent and, in some respects, unintelligible". He says it "verges on the insulting to the court" and, reaching for the thesaurus, is "contumelious". He strikes it out. We note that the plaintiff was once a licensed representative of the 1st defendant, for leveraged foreign exchange trading from 2005 to 2008.

He traded through his sister-in-law's account for 6 years.