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06 August 2024

Oceania Natural Limited (ONL) and associated individuals

The case centres on the trading in shares of Oceania Natural Limited between May 2016 and April 2017 and the four individuals subject to the proceedings are:

  • Wei (Walker) Zhong who was the Executive Chairman and CEO of Oceania Natural Limited.
  • Lei (Regina) Ding, Marketing Director of Oceania Natural Limited.
  • Zhongyang (Sean) Meng, a previous Director of Oceania Natural Limited.
  • Jiashun (Sam) Qian, a chartered accountant.

August 2024

Wei (Walker) Zhong and Lei (Regina) Ding have been banned from being a director, promoter or manager of an entity, as defined in the Financial Markets Conduct 2013 (FMC Act), for nine years, the High Court has ruled.

Mr Zhong was the Executive Chairman and CEO of Oceania Natural Limited; Ms Ding was a senior manager and marketing director of Oceania Natural Limited.

The pair were found to have breached the market manipulation and disclosure provisions under the FMC Act in April 2023. They received the highest penalties imposed to date for breaching the market manipulation provisions. Mr Zhong received a penalty of $1.3m and Ms Ding was ordered to pay $760,000.

fma sought banning orders for both Mr Zhong and Ms Ding and costs as part of the proceeding.

Justice Robinson awarded the FMA costs of approximately $468,000.

July 2023

The penalty hearing for the first and second defendants in the Oceania Natural Limited (ONL) proceeding brought by the FMA was heard at the High Court in Auckland last Thursday, 13 July.

Previously, on 6 April 2023, the Court found Wei Zhong and Lei Ding had breached the market manipulation and disclosure provisions under sections 265 and 297 of the Financial Markets Conduct Act (FMCA): Mr Zhong had six market manipulation contraventions and three disclosure contraventions; Ms Ding had six market manipulation contraventions and five disclosure contraventions.

Wei (Walker) Zhong was the Executive Chairman and CEO of Oceania Natural Limited; Lei (Regina) Ding, was a senior manager and marketing director of Oceania Natural Limited.

The Court issued a results decision with reasons to follow.  The Judge ordered a penalty of $1.33m for Mr Zhong and $760,000 for Ms Ding. 

These are the highest penalties imposed to date for contraventions of the market manipulation and disclosure provisions in the FMCA.

The Judge has reserved his full decision for later publication. The FMA will make final comment on the proceedings when that judgment is released.

April 2023

Wei (Walker) Zhong and Lei (Regina) Ding have been found to have contravened the Financial Markets Conduct Act 2013 in relation to the trading of Oceania Natural Limited (ONL) shares.

In his judgment delivered on 6 April 2023, Justice Michael Robinson said he was satisfied that Mr Zhong, the executive chairman and chief executive of ONL, and/or Ms Ding, the sales and marketing manager and marketing director of ONL, contravened all seven-market manipulation causes of action brought against them. The Judge was also satisfied that Mr Zhong and/or Ms Ding contravened seven disclosure causes of action.

March 2022

Zhongyang (Sean) Meng and Jiashun (Sam) Qian have been ordered to pay pecuniary penalties of $180,000 and $130,000 respectively for market manipulation and disclosure breaches involving Oceania Natural Limited (ONL) shares.

Market manipulation is prohibited by section 265 in the Financial Markets Conduct Act, while disclosure obligations are contained in section 297.

15 April 2019

has issued civil proceedings in the High Court against four individuals in relation to trading in Oceania Natural Limited. (ONL)

The proceedings relate to alleged breaches of market manipulation prohibitions and the disclosure obligations in the Financial Markets Conduct Act 2013. The FMA is seeking financial penalties.

The four individuals subject to the proceedings are:

  • Wei (Walker) Zhong who was the Executive Chairman and CEO of Oceania Natural Limited.
  • Lei (Regina) Ding, Marketing Director of Oceania Natural Limited.
  • Zhongyang (Sean) Meng, a previous Director of Oceania Natural Limited.
  • Jiashun (Sam) Qian, a chartered accountant

The case centres on the trading in shares of Oceania Natural Limited between May 2016 and April 2017. Oceania Natural Limited listed on the NXT board on the 31st March 2016 and delisted on the 29thJune 2018.

There are fifteen causes of action being brought before the High Court by the FMA. Nine relate to alleged breaches of disclosure obligations and six relate to alleged breaches of market manipulation prohibitions.

December 2016

The trading was referred to the FMA by NZX in December 2016.