Asset management firm owner gets six years and nine months’ jail for laundering $64 million as revealed in ICAC graft probe

An asset management company owner was sentenced today (July 23) at the District Court to six years and nine months’ imprisonment for laundering approximately $64 million in crime proceeds through multiple companies and individuals, as revealed in an ICAC investigation stemming from a corruption complaint.

Xiao Rui, 37, owner of Augustine Holdings Limited (AHL), was earlier found guilty after trial of four counts of dealing with property known or believed to represent proceeds of an indictable offence, contrary to section 25(1) of the Organized and Serious Crimes Ordinance (commonly known as money laundering). He was also convicted of one count of using copies of false instruments, contrary to section 74 of the Crimes Ordinance.

In sentencing, Deputy Judge Bernard Chung noted that this was a serious case warranting a deterrent sentence. He reprimanded the defendant for repeatedly engaging in cross-boundary money laundering activities involving a substantial sum over a long period, which tarnished Hong Kong’s image. The defendant also used false instruments to apply for entry into Hong Kong, constituting a serious fraudulent act.

The ICAC has earlier applied to the court for confiscation of the crime proceeds involved in this case, with the related hearing scheduled for October 7.

The court heard that at the material time, the defendant and other individuals jointly set up AHL, an asset management company, along with three subsidiaries. Between March 2014 and November 2023, a total of 38 transactions amounting to over $64 million were deposited into the defendant’s personal bank accounts via at least 12 companies and 12 individuals, which had no business dealings with AHL and its subsidiaries and were not clients of the companies.

Additionally, in 2013, the defendant submitted copies of a false certificate of deposit and a false passbook to the Immigration Department for asset declaration in support of a Hong Kong residency application under the then Capital Investment Entrant Scheme.

The prosecution was today represented by Senior Public Prosecutor Noelle Aileen Chit, assisted by ICAC officer Jeff Ng.