Recent ICAC Cases
Two employees of a printing company, charged by the ICAC, were sentenced today (August 17) after admitting at the District Court that they had deceived the company into engaging a relative of one of them to provide delivery services by concealing a conflict of interest, thereby making personal gains of about $1 million.
So Keung, 53, former assistant production manager of Bannershop Hong Kong Limited (Bannershop), received a jail term of 10 months; and Zhang Haiqi, 34, former delivery section supervisor of Bannershop, was sentenced to seven months’ imprisonment, suspended for 12 months. The duo pleaded guilty today to one count of fraud, contrary to section 16A(1) of the Theft Ordinance.
In sentencing, Deputy Judge Mr Terence Wai Hon-hei remarked that So had orchestrated the scam and reprimanded both defendants for breaching the trust placed in them. The court reduced their sentences, taking into account their guilty pleas, full compensation made to their former employer and other mitigating factors.
Meanwhile, the charge against So’s wife, Poon Po-lin, 55, was left on file at the District Court.
Bannershop engages in digital printing, graphic design, exhibition decoration and installation. Its staff handbook and code of conduct stipulate that if an employee’s spouse or siblings have any business dealings with the company, the employee must report it to the company and avoid any conflicts of interest.
At the material time, So managed the production of printed products, while Zhang was responsible for managing the delivery of printed products to customers. The court heard that in February 2018, So’s brother-in-law was engaged to deliver products to customers upon Zhang’s recommendation.
Between May 2018 and January 2022, Zhang submitted relevant delivery notes to the company, and delivery fees totalling approximately $6.6 million were paid to the brother-in-law through Poon’s bank account. Upon So’s instruction, Poon subsequently transferred about $5.6 million to the brother-in-law and the remaining $1 million was split between So and Zhang, who received around $700,000 and $300,000 respectively.
The ICAC investigation arose from a corruption complaint. Enquiries revealed that So claimed the brother-in-law was his friend; he had never disclosed their familial relationship to Bannershop, nor did he declare that Poon was his wife.
The ICAC recommends that private sector organisations formulate clear guidelines and mechanisms for declaring conflicts of interest. Staff members are reminded to avoid conflicts of interest and to make timely declarations to their employers. Employees who conceal any conflicts of interest in relation to their official duties to benefit themselves or their associates may constitute a breach of the Prevention of Bribery Ordinance or other criminal laws.
Bannershop had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by Senior Public Prosecutor Audrey Parwani, assisted by ICAC officer Park Wong.
A kitchenware supplier charged by the ICAC today (August 13) admitted at the Kwun Tong Magistrates’ Courts that she had bribed a purchasing manager of a Chinese restaurant to secure kitchenware orders, with the bribe amounting to 15 per cent of the order value.
Lai Yahao, 56, proprietor of Chuk Chin Stainless Steel Equipment Company Limited (Chuk Chin), pleaded guilty to one count of offering an advantage to an agent, contrary to section 9(2)(b) of the Prevention of Bribery Ordinance.
Acting Principal Magistrate Mr Li Chi-ho adjourned the case to November 12 for mention, pending the defendant’s assistance to be offered to the prosecution. The defendant was granted bail.
The court heard that in December 2022, Fook Lam Moon Group (Fook Lam Moon), a Chinese restaurant operator, planned to open a branch in Kowloon Bay. Consequently, its purchasing manager placed various kitchenware orders with Chuk Chin.
The defendant admitted that on December 25, 2022, she had offered a kickback to the purchasing manager in relation to three of the kitchenware orders with a total value exceeding $79,000. The kickback was calculated at 15 per cent of the order value, amounting to approximately $12,000.
Fook Lam Moon had rendered assistance to the ICAC during its investigation into the case.
The prosecution was today represented by ICAC officer Rosita Lee.
A then bank employee, charged by the ICAC, admitted at the Eastern Magistrates’ Courts today (August 11) that she had accepted RMB500 in bribes for each client referred by an intermediary who successfully opened a bank account.
Pan Xiuzhen, 30, then relationship manager of Standard Chartered Bank (Hong Kong) Limited (Standard Chartered Bank), pleaded guilty to one count of conspiracy for an agent to accept an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance.
Principal Magistrate Mr David Cheung Chi-wai adjourned the case to October 9 for sentencing and granted the defendant bail.
The court heard that at the material time, the defendant was posted to a branch of Standard Chartered Bank in Central. Her duties included assisting new clients in opening bank accounts. She admitted to accepting bribes from an intermediary between November 2023 and April 2024 to facilitate account openings for clients referred by the intermediary, with each successful account opening accepting a bribe of RMB500.
The ICAC investigation stemmed from a corruption complaint. Enquiries revealed that during the offence period, the defendant had successfully assisted 16 clients referred by the intermediary to open bank accounts and accepted bribes totalling RMB8,000.
Standard Chartered Bank had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by ICAC officer Benny Chang.
An ICAC corruption investigation revealed that an illegal syndicate, with the assistance of bank staff in signing and issuing false bank documents, deceived Japanese investors into investing over JPY400 million (about HK$28.4 million at the material time) in various companies that falsely claimed to be undertaking investment projects in Africa by asserting that their bank accounts held assets totalling over HK$37 billion. The five defendants had either entered guilty pleas or been convicted after trial. Of them, two then bank managers were sentenced today (August 6) at the District Court to three years’ imprisonment.
Woo Man-ho, 38; and Chan Tak-ching, 39, both then relationship managers of Standard Chartered Bank (Hong Kong) Limited (Standard Chartered Bank), were each sentenced to three years’ imprisonment. They earlier pleaded guilty to a total of four counts of conspiracy to defraud, contrary to the Common Law.
In sentencing, Judge Mr Clement Lee Hing-nin remarked that the defendants premeditated the crimes, seriously breached trust, and undermined investor confidence in the bank. The judge added that the offences, which spanned over one and a half years and involved numerous victims and over HK$28 million in fraud, warranted deterrent sentences. The scam would likely have continued, had it not been exposed.
The judge took a starting point of six years’ imprisonment and reduced the duo’s jail terms to three years each, considering their guilty pleas and assistance rendered to the prosecution.
Leung Ho-yin, 40, another then relationship manager of Standard Chartered Bank; and Law Man-fai, 52, self-employed financial consultant, earlier pleaded guilty to a total of three counts of conspiracy to defraud. Co-defendant Catherine Kum Kit-ching, 58, manager of ADF Capital Limited (ADF), was earlier found guilty after trial of one count of conspiracy to deal with property known or believed to represent proceeds of indictable offence (commonly known as money laundering), contrary to section 25(1) of the Organized and Serious Crimes Ordinance and section 159A of the Crimes Ordinance. The trio are remanded until September 30 for sentence.
The ICAC investigation arose from a corruption complaint. At the material time, Woo, Chan and Leung were working at Standard Chartered Bank’s business banking department and priority banking department, respectively. At that time, Law was a self-employed financial consultant, while Kum was a manager of investment company ADF.
The court heard that between January 2015 and September 2016, Woo, Chan, Leung and Law conspired with four foreign nationals to use false proof of fund letters and corporate refund promissory notes to deceive various Japanese investors into making investments totalling over JPY400 million in ADF and several other companies.
The four defendants used the false documents, signed by Woo and Chan and purportedly issued by Standard Chartered Bank, to falsely claim that Standard Chartered Bank was the guarantor of ADF which undertook to pay about HK$450 million, and that the foreign nationals involved in the case had substantial funds totalling over HK$37 billion available for investments in Africa.
The four foreign nationals included two shareholders-cum-directors of ADF, specifically a Zambian man and a Korean man; a Thai man who was Chan’s client; and a Japanese woman who was the chief executive officer of a company.
Meanwhile, Kum conspired with the Zambian man and the Korean man to use a bank account to launder crime proceeds totalling about HK$55 million, representing the sum handled by the four co-defendants in the scam.
The ICAC enquiries revealed that Standard Chartered Bank had never held the assets concerned on behalf of the foreign nationals.
Standard Chartered Bank rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Krystie Cheng.
A team leader of a bar-bending subcontractor of a transitional housing project in Yuen Long, charged by the ICAC, was today (August 5) sentenced to seven months’ imprisonment at the Fanling Magistrates’ Courts after admitting that he had accepted bribes totalling over $50,000 from a bar-bender in a span of five months for continuing the latter’s employment.
Chan Kong-on, 33, then bar-bending team leader of Long Engineering Limited (Long Engineering), pleaded guilty to seven counts of agent accepting an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance.
In sentencing, Magistrate Mr Jason Wan Siu-ming remarked that the defendant had exploited the worker over an extended period by taking rebates equivalent to 20 per cent of the latter’s daily wage. The magistrate noted that the serious offences committed by the defendant harmed the worker and undermined social fairness, warranting an immediate custodial sentence of seven months. The magistrate also ordered the defendant to pay over $50,000 - the sum involved in the present case - as restitution.
An ICAC spokesperson noted that the Commission has zero tolerance for corruption, adding that the sentence reflected the gravity of the offences. If construction workers are asked to pay bribes in exchange for employment, they should reject the demand and report it to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366.
The court heard that at the material time, Long Engineering was a bar-bending subcontractor of a transitional housing project at Pat Heung in Yuen Long. The defendant was a team leader at the construction site responsible for recruiting bar-benders, supervising them and distributing pay-cheques to them.
In the five months between October 2023 and February 2024, the defendant accepted seven bribes totalling over $50,000 from a bar-bender under his supervision for continuing the latter’s employment with Long Engineering.
Long Engineering does not allow its employees to accept any advantages in relation to its business or affairs. The ICAC investigation stemmed from a corruption complaint. Enquiries revealed that the defendant solicited a bribe of $500 per day from the bar-bender soon after the latter was employed at a daily wage of $2,450. The bar-bender acceded to the defendant’s request as he believed that he would lose his job if he did not do so.
Long Engineering had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by ICAC officer Alex Lau.
