HLB Hodgson Impey Cheng and two certified public accountants who have been reprimanded by a disciplinary committee of the Hong Kong Institute of Certified Public Accountants on April 6, 2018, are further ordered to pay penalties. The committee ordered HLB and the two accountants to pay penalties of HK$400,000, HK$300,000 and HK$300,000 respectively. They have also been ordered to pay costs of HK$3,000,000.
HLB was the auditor of Tiffit Securities (Hong Kong), which is now in liquidation. HLB issued compliance reports on Tiffit for the years ended March 31, 2003, 2004 and 2005. The two accountants were the engagement partners for the 2003 audit report, and the 2004 and 2005 audits respectively. In 2006, the Securities and Futures Commission discovered that Tiffit had misappropriated client assets.