Hong Kong police have arrested two executives from Aax, a multi-national trading firm that trades in energy, commodities and financial services, on charges of fraud

Background 

Aax is a publicly traded company on the Hong Kong stock exchange, and its operations span the globe. The two arrested individuals, Kenneth J. Han and David K. Chan, are senior executives at the firm, holding the titles of managing director and company secretary, respectively.

The Allegations 

The pair have been accused of:

  • Dishonestly using documents with intent to deceive customers
  • Fraudulently causing financial loss to customers
  • False and misleading statements designed to influence the share price of Aax
  • Making improper transfers of assets for the purpose of influencing customers

Aax's Response 

Aax has released a statement denying any wrongdoing. The statement reads:

"Aax denies any wrongdoing and the two executives in question deny the charges against them. Aax is committed to conducting its business in an honest and professional manner and is fully cooperating with the police to resolve the matter."

The company has refused to comment further on the issue, citing legal reasons.

What Now? 

The case is now in the hands of the Hong Kong judiciary, who will decide how it should be handled. It is possible that the two executives may face criminal charges, resulting in significant fines and/or imprisonment.

This is not the first time that Aax has been accused of improper conduct. In 2020, the company was embroiled in an insider trading scandal worth over $2 billion, which resulted in the resignation of several senior executives.

It remains to be seen if Aax and its executives will manage to avoid any punishments this time around, but one thing is certain: the company's reputation is taking a huge hit.