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Recent ICAC Cases Anti-Corruption Laws in Hong Kong Cross-Boundary Corruption Conflict of Interest
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Ethical Decision MakingRecent ICAC Cases
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Jul 2020Ex-employees of cable manufacturer jailed for fraud over $3.4m business diversionTwo former employees of a cable manufacturer, charged by the ICAC, were sentenced to jail terms up to 32 months at the District Court today (July 7) for conspiracy to divert business amounting to $3.4 million to three other companies by fraudulent means.Pang Wing-tat, 40, former account executive of Samson Electric Wire Company Limited (Samson), and So Ying-han, 47, former assistant account executive of Samson, were jailed for 32 months and 27 months respectively.In sentencing, Judge Mr Frankie Yiu Fun-che said he took a starting point of 54 months’ imprisonment for both defendants, and reduced Pang’s jail term to 32 months after taking into account his guilty plea and his repayment of $250,000 to Samson.Having considered So’s guilty plea and assistance rendered to the prosecution, her jail term was reduced by half to 27 months, the judge added.So earlier pleaded guilty to three counts of conspiracy to defraud, contrary to Common Law. Pang earlier pleaded guilty to two of the aforesaid offences jointly charged with So.The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.The court heard that at the material time, Pang and So were account executive and assistant account executive of Samson, a cable manufacturer, respectively. They were both responsible for selling its products, with So working under Pang’s supervision.Pang and a business partner set up a trading company in June 2014. Another two companies were also associated with Pang.Between mid-2012 and June 2016, Pang and So conspired together and with others to falsely represent to Samson that another supplier had offered to supply cable products to Pang’s company and one of the two associated companies at prices lower than that charged by Samson.So further admitted that she had conspired with Pang and another to make a similar false representation to Samson in relation to the remaining associated company, the court heard.Pang and/or So then suggested Samson to sell those products at the said lower prices to Pang’s company and the two associated companies to secure their orders.Samson approved the arrangement and received orders from Pang’s company and the two associated companies for various cable products during the abovementioned period.Samson was then arranged to supply those products in the total invoiced amount of about $3.4 million to the three companies at discounted prices. As a result, Samson had undercharged at least over $820,000 in the abovementioned purchase orders, the court heard.Pang and So then arranged one of the associated companies to supply cable products purchased from Samson to Pang’s company. A total of 17 clients of Samson were referred to Pang’s company and the other associated company after being told that the cable products they intended to purchase from Samson were out of stock.When interviewed under caution by ICAC officers, So admitted that she had received $150,000 from Pang for sending Samson’s clients to companies owned by and associated with Pang.Samson had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Alex Ng, assisted by ICAC officer Terence Wong. 02
Jul 2020Ex-security guards charged with $180,000 fraud over false attendanceTwo former security guards were charged by the ICAC in separate cases for defrauding a security services company of wages totalling about $180,000 by falsifying their attendance records.The defendants charged on Tuesday (June 30) are Hui Yiu-chung, 57; and Chu Cheung-sang, 65, both former security guards of Joyway Management (HK) Limited (Joyway). Hui faces one count of conspiracy to defraud, contrary to Common Law, while Chu faces one count of fraud, contrary to Section 16A of the Theft Ordinance.The defendants will appear at the West Kowloon Magistrates’ Courts tomorrow (July 3) for plea in separate cases.The cases arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offences.At the material time, Joyway provided security services for two vacant government sites in Tsing Yi and Ma Wan. Security guards deployed to the two sites were required to sign on the attendance books placed there to record the time they reported on and off duty.In the first case, Hui was a security guard of Joyway deployed to work at the Tsing Yi site.The charge alleges that between May 1, 2018 and October 31, 2019, Hui conspired together with another security guard to defraud Joyway by dishonestly falsely representing to the company that Hui had been on duty at the Tsing Yi site during the period as shown on his attendance records, thereby inducing Joyway to pay him salary calculated based on his attendance records.It is alleged that Joyway was induced to pay Hui wages totalling over $160,000.In the second case, Chu was a security guard of Joyway deployed to work at both the Tsing Yi and Ma Wan sites.The charge alleges that between May 2, 2018 and October 31, 2019, Chu falsely represented to Joyway that he had been on duty at the assigned venue during the period as shown on his attendance records, and with intent to defraud, induced Joyway to pay him salary calculated based on his attendance records, which resulted in benefit to him or in prejudice to Joyway.It is alleged that Joyway was induced to pay an extra amount of about $16,000 to Chu as wages.Joyway has rendered full assistance to the ICAC during its investigation into the case.The defendants have been released on ICAC bail, pending their court appearance tomorrow. 02
Jul 2020Ex-employees of design firm charged with fraud and attempted fraud over $1.6m business diversionTwo former employees of a design company have been charged by the ICAC today (July 2) with fraud and attempted fraud by diverting business amounting to over $1.6 million to their own company, falsely representing that the two companies were affiliated.Flora Ma Yuet-shan and Chau Ho-pui, both 33, respectively former sales coordinator and former sales & marketing executive of Muse Design & Construction Limited (Muse), jointly face two charges – one of attempted fraud, contrary to Section 16A of the Theft Ordinance and Section 159G of the Crimes Ordinance, and one of fraud, contrary to Section 16A of the Theft Ordinance.The defendants will appear at the West Kowloon Magistrates’ Courts next Monday (July 6) for plea.Muse is a company specialised in exhibition and interior design. At the material time, Ma was Muse’s sales coordinator while Chau was its sales & marketing executive. In March 2017, the duo set up Artemis Design Engineering Limited (Artemis) which also engaged in exhibition and interior design business.One of the charges alleges that between March 1 and 31, 2017, Ma and Chau falsely represented to a client of Muse that Artemis was a sub-contractor of Muse, with intent to defraud, attempted to induce the client to award an office renovation project to Artemis, which might result in benefit to Artemis or prejudice to the client.It is alleged that Artemis had issued to the client a quotation for the renovation project at over $1.5 million.Another charge alleges that between March 1 and July 28, 2017, Ma and Chau made the same false representation to the aforesaid client, with intent to defraud, induced the client to award three booth design and construction projects to Artemis, which resulted in benefit to Artemis or prejudice to the client.The client was allegedly induced to engage Artemis to take up the projects at $164,500.Muse and the client concerned have rendered full assistance to the ICAC during its investigation into the case.The defendants have been released on ICAC bail, pending their court appearance next Monday. 30
Jun 2020Duo charged with fraud over $290,000 government green fundingA director and an employee of an air-conditioning system supplier have been charged by the ICAC today (June 30) with conspiracy to defraud the government of $290,000 funding by submitting false quotations in relation to installation of an environmental-friendly air-conditioning system for a printing company.Tsui Wai-man, 45, then director-cum-shareholder of now defunct Tomi Fuji E.T. Limited (Tomi Fuji); and Wong Tsui-ting, 32, then assistant of Tomi Fuji, face one count of conspiracy to defraud, contrary to Common Law.The defendants will appear at the Kowloon City Magistrates’ Courts on Friday (July 3) for the case to be transferred to the District Court for plea.The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offence.In April 2008, the Environmental Protection Department launched the Cleaner Production Partnership Programme (the Programme) providing funding to encourage and facilitate Hong Kong-owned factories in Guangdong and Hong Kong to adopt cleaner production technologies and practices. The Hong Kong Productivity Council (HKPC) was the implementation agent for the Programme.At the material time, Tsui was a director-cum-shareholder of Tomi Fuji, an air-conditioning system supplier. Wong was an assistant of the company.Upon the recommendation of Tsui, a printing company in Hong Kong engaged Tomi Fuji to install an environmental-friendly air-conditioning system and apply for funding under the Programme with the HKPC.The charge alleges that between June 10, 2014 and August 10, 2016, Tsui and Wong conspired together and with an assistant engineer of Tomi Fuji to defraud the HKPC by dishonestly submitting false quotation documents purportedly prepared by four engineering companies, thereby causing and inducing the HKPC to approve the funding application of the aforesaid printing company under the Programme.It is alleged that the HKPC was caused to release funding of $290,000 to the printing company upon completion of installation of the air-conditioning system by Tomi Fuji.The HKPC, the printing company and the four engineering companies concerned have rendered full assistance to the ICAC during its investigation into the case.The defendants have been released on ICAC bail, pending their court appearance on Friday. 29
Jun 2020Ex-NGO employee charged with fraud over service contract awarded to her companyA former employee of a non-governmental organisation (NGO) has been charged by the ICAC today (June 29) with fraud for failing to disclose her conflict of interest to the NGO when awarding a service contract to a company co-owned by her.Lau Tze-hei, 46, former nursing officer of Fu Hong Society, faces one count of fraud, contrary to Section 16A of the Theft Ordinance.The defendant will appear at the West Kowloon Magistrates’ Courts on Thursday (July 2) for plea.The case arose from a corruption complaint referred by Fu Hong Society. Subsequent ICAC enquiries revealed the above alleged offence.Fu Hong Society is an NGO which provides rehabilitation and health care services to individuals with disabilities. Its code of conduct provided that an employee should make proper declaration on conflict of interest.At the material time, the defendant was a nursing officer of Fu Hong Society posted to Lai Yiu Adult Training Centre. She was responsible for assisting her supervisor in the centre’s administration work, including engaging service providers and handling quotations submitted by them.The charge alleges that between August 3, 2018 and March 4, 2019, the defendant concealed from and failed to disclose to Fu Hong Society her interest in a company co-owned by her, Prestige Health Care (Nursing) Limited (Prestige Health Care), whilst she was an employee of Fu Hong Society having a duty to make full disclosure of any existing or potential conflict of interest to the organisation.The defendant, with intent to defraud, has allegedly induced Fu Hong Society to engage Prestige Health Care as its service provider and make payments to it, which resulted in benefit to Prestige Health Care or in prejudice to Fu Hong Society.It is alleged that Fu Hong Society had released payments totalling about $53,000 to Prestige Health Care for the provision of temporary health care worker services.Fu Hong Society has rendered full assistance to the ICAC during its investigation into the case.The defendant has been released on ICAC bail, pending her court appearance on Thursday.
Jul 2020Ex-employees of cable manufacturer jailed for fraud over $3.4m business diversionTwo former employees of a cable manufacturer, charged by the ICAC, were sentenced to jail terms up to 32 months at the District Court today (July 7) for conspiracy to divert business amounting to $3.4 million to three other companies by fraudulent means.Pang Wing-tat, 40, former account executive of Samson Electric Wire Company Limited (Samson), and So Ying-han, 47, former assistant account executive of Samson, were jailed for 32 months and 27 months respectively.In sentencing, Judge Mr Frankie Yiu Fun-che said he took a starting point of 54 months’ imprisonment for both defendants, and reduced Pang’s jail term to 32 months after taking into account his guilty plea and his repayment of $250,000 to Samson.Having considered So’s guilty plea and assistance rendered to the prosecution, her jail term was reduced by half to 27 months, the judge added.So earlier pleaded guilty to three counts of conspiracy to defraud, contrary to Common Law. Pang earlier pleaded guilty to two of the aforesaid offences jointly charged with So.The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.The court heard that at the material time, Pang and So were account executive and assistant account executive of Samson, a cable manufacturer, respectively. They were both responsible for selling its products, with So working under Pang’s supervision.Pang and a business partner set up a trading company in June 2014. Another two companies were also associated with Pang.Between mid-2012 and June 2016, Pang and So conspired together and with others to falsely represent to Samson that another supplier had offered to supply cable products to Pang’s company and one of the two associated companies at prices lower than that charged by Samson.So further admitted that she had conspired with Pang and another to make a similar false representation to Samson in relation to the remaining associated company, the court heard.Pang and/or So then suggested Samson to sell those products at the said lower prices to Pang’s company and the two associated companies to secure their orders.Samson approved the arrangement and received orders from Pang’s company and the two associated companies for various cable products during the abovementioned period.Samson was then arranged to supply those products in the total invoiced amount of about $3.4 million to the three companies at discounted prices. As a result, Samson had undercharged at least over $820,000 in the abovementioned purchase orders, the court heard.Pang and So then arranged one of the associated companies to supply cable products purchased from Samson to Pang’s company. A total of 17 clients of Samson were referred to Pang’s company and the other associated company after being told that the cable products they intended to purchase from Samson were out of stock.When interviewed under caution by ICAC officers, So admitted that she had received $150,000 from Pang for sending Samson’s clients to companies owned by and associated with Pang.Samson had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Alex Ng, assisted by ICAC officer Terence Wong. 02
Jul 2020Ex-security guards charged with $180,000 fraud over false attendanceTwo former security guards were charged by the ICAC in separate cases for defrauding a security services company of wages totalling about $180,000 by falsifying their attendance records.The defendants charged on Tuesday (June 30) are Hui Yiu-chung, 57; and Chu Cheung-sang, 65, both former security guards of Joyway Management (HK) Limited (Joyway). Hui faces one count of conspiracy to defraud, contrary to Common Law, while Chu faces one count of fraud, contrary to Section 16A of the Theft Ordinance.The defendants will appear at the West Kowloon Magistrates’ Courts tomorrow (July 3) for plea in separate cases.The cases arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offences.At the material time, Joyway provided security services for two vacant government sites in Tsing Yi and Ma Wan. Security guards deployed to the two sites were required to sign on the attendance books placed there to record the time they reported on and off duty.In the first case, Hui was a security guard of Joyway deployed to work at the Tsing Yi site.The charge alleges that between May 1, 2018 and October 31, 2019, Hui conspired together with another security guard to defraud Joyway by dishonestly falsely representing to the company that Hui had been on duty at the Tsing Yi site during the period as shown on his attendance records, thereby inducing Joyway to pay him salary calculated based on his attendance records.It is alleged that Joyway was induced to pay Hui wages totalling over $160,000.In the second case, Chu was a security guard of Joyway deployed to work at both the Tsing Yi and Ma Wan sites.The charge alleges that between May 2, 2018 and October 31, 2019, Chu falsely represented to Joyway that he had been on duty at the assigned venue during the period as shown on his attendance records, and with intent to defraud, induced Joyway to pay him salary calculated based on his attendance records, which resulted in benefit to him or in prejudice to Joyway.It is alleged that Joyway was induced to pay an extra amount of about $16,000 to Chu as wages.Joyway has rendered full assistance to the ICAC during its investigation into the case.The defendants have been released on ICAC bail, pending their court appearance tomorrow. 02
Jul 2020Ex-employees of design firm charged with fraud and attempted fraud over $1.6m business diversionTwo former employees of a design company have been charged by the ICAC today (July 2) with fraud and attempted fraud by diverting business amounting to over $1.6 million to their own company, falsely representing that the two companies were affiliated.Flora Ma Yuet-shan and Chau Ho-pui, both 33, respectively former sales coordinator and former sales & marketing executive of Muse Design & Construction Limited (Muse), jointly face two charges – one of attempted fraud, contrary to Section 16A of the Theft Ordinance and Section 159G of the Crimes Ordinance, and one of fraud, contrary to Section 16A of the Theft Ordinance.The defendants will appear at the West Kowloon Magistrates’ Courts next Monday (July 6) for plea.Muse is a company specialised in exhibition and interior design. At the material time, Ma was Muse’s sales coordinator while Chau was its sales & marketing executive. In March 2017, the duo set up Artemis Design Engineering Limited (Artemis) which also engaged in exhibition and interior design business.One of the charges alleges that between March 1 and 31, 2017, Ma and Chau falsely represented to a client of Muse that Artemis was a sub-contractor of Muse, with intent to defraud, attempted to induce the client to award an office renovation project to Artemis, which might result in benefit to Artemis or prejudice to the client.It is alleged that Artemis had issued to the client a quotation for the renovation project at over $1.5 million.Another charge alleges that between March 1 and July 28, 2017, Ma and Chau made the same false representation to the aforesaid client, with intent to defraud, induced the client to award three booth design and construction projects to Artemis, which resulted in benefit to Artemis or prejudice to the client.The client was allegedly induced to engage Artemis to take up the projects at $164,500.Muse and the client concerned have rendered full assistance to the ICAC during its investigation into the case.The defendants have been released on ICAC bail, pending their court appearance next Monday. 30
Jun 2020Duo charged with fraud over $290,000 government green fundingA director and an employee of an air-conditioning system supplier have been charged by the ICAC today (June 30) with conspiracy to defraud the government of $290,000 funding by submitting false quotations in relation to installation of an environmental-friendly air-conditioning system for a printing company.Tsui Wai-man, 45, then director-cum-shareholder of now defunct Tomi Fuji E.T. Limited (Tomi Fuji); and Wong Tsui-ting, 32, then assistant of Tomi Fuji, face one count of conspiracy to defraud, contrary to Common Law.The defendants will appear at the Kowloon City Magistrates’ Courts on Friday (July 3) for the case to be transferred to the District Court for plea.The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offence.In April 2008, the Environmental Protection Department launched the Cleaner Production Partnership Programme (the Programme) providing funding to encourage and facilitate Hong Kong-owned factories in Guangdong and Hong Kong to adopt cleaner production technologies and practices. The Hong Kong Productivity Council (HKPC) was the implementation agent for the Programme.At the material time, Tsui was a director-cum-shareholder of Tomi Fuji, an air-conditioning system supplier. Wong was an assistant of the company.Upon the recommendation of Tsui, a printing company in Hong Kong engaged Tomi Fuji to install an environmental-friendly air-conditioning system and apply for funding under the Programme with the HKPC.The charge alleges that between June 10, 2014 and August 10, 2016, Tsui and Wong conspired together and with an assistant engineer of Tomi Fuji to defraud the HKPC by dishonestly submitting false quotation documents purportedly prepared by four engineering companies, thereby causing and inducing the HKPC to approve the funding application of the aforesaid printing company under the Programme.It is alleged that the HKPC was caused to release funding of $290,000 to the printing company upon completion of installation of the air-conditioning system by Tomi Fuji.The HKPC, the printing company and the four engineering companies concerned have rendered full assistance to the ICAC during its investigation into the case.The defendants have been released on ICAC bail, pending their court appearance on Friday. 29
Jun 2020Ex-NGO employee charged with fraud over service contract awarded to her companyA former employee of a non-governmental organisation (NGO) has been charged by the ICAC today (June 29) with fraud for failing to disclose her conflict of interest to the NGO when awarding a service contract to a company co-owned by her.Lau Tze-hei, 46, former nursing officer of Fu Hong Society, faces one count of fraud, contrary to Section 16A of the Theft Ordinance.The defendant will appear at the West Kowloon Magistrates’ Courts on Thursday (July 2) for plea.The case arose from a corruption complaint referred by Fu Hong Society. Subsequent ICAC enquiries revealed the above alleged offence.Fu Hong Society is an NGO which provides rehabilitation and health care services to individuals with disabilities. Its code of conduct provided that an employee should make proper declaration on conflict of interest.At the material time, the defendant was a nursing officer of Fu Hong Society posted to Lai Yiu Adult Training Centre. She was responsible for assisting her supervisor in the centre’s administration work, including engaging service providers and handling quotations submitted by them.The charge alleges that between August 3, 2018 and March 4, 2019, the defendant concealed from and failed to disclose to Fu Hong Society her interest in a company co-owned by her, Prestige Health Care (Nursing) Limited (Prestige Health Care), whilst she was an employee of Fu Hong Society having a duty to make full disclosure of any existing or potential conflict of interest to the organisation.The defendant, with intent to defraud, has allegedly induced Fu Hong Society to engage Prestige Health Care as its service provider and make payments to it, which resulted in benefit to Prestige Health Care or in prejudice to Fu Hong Society.It is alleged that Fu Hong Society had released payments totalling about $53,000 to Prestige Health Care for the provision of temporary health care worker services.Fu Hong Society has rendered full assistance to the ICAC during its investigation into the case.The defendant has been released on ICAC bail, pending her court appearance on Thursday.