Meng & Associates’ web page proudly states integrity is a core component of its business. Sean Meng and Sam Qian, two chartered accountants with Meng & Associates, were each fined for market manipulation over share trading in Oceania Natural Ltd: Meng ordered to pay $180,000; Qian $130,000.
Oceania listed on the NXT small-cap market in 2016, delisting in 2018 before NXT stopped operating as a separate trading platform in 2019. The company specialised in health foods and health supplements. Financial Markets Authority is currently prosecuting majority shareholder Walker Zhong and wife Regina Ding alleging market manipulation of Oceania shares. Fellow shareholders Sean Ming and Sam Qian admitted FMA charges, saying they had no intention of manipulating market prices but that their trading had this effect.
The High Court was told of share trading between related parties in 2016 which ramped up Oceania’s share price. Shares in small-cap companies are thinly traded.
Evidence was given of backstage messaging between Zhong, Meng, Ding and Qian which saw above market buy orders matched with sell orders to create the illusion of active trading, driving up Oceania’s share price. A rise in market price increased the value of Meng’s and Qian’s Oceania holdings. Oceania is now in liquidation, insolvent.
Financial Markets Authority v. Meng & Qian – High Court (16.03.22)
22.058