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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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Sep 2020Ex-employee of background research company charged with fraud over business diversionA former employee of a background research company has been charged by the ICAC today (September 23) with fraud by falsely representing to a bank that his employer was renamed so as to divert its business to his own company.Lee Sin-lun, 43, former sales executive of Databank Research Company (Databank Research), faces one count of fraud, contrary to Section 16A of the Theft Ordinance.The defendant will appear in the Shatin Magistrates’ Courts on Friday (September 25) for plea.The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offence.At the material time, the defendant was a sale executive of Databank Research which provided Companies Registry and Business Registration Office check services to local licensed banks, including Bank of Communications (Hong Kong) Limited (Bank of Communications (HK)).In June 2018, the defendant solely set up a company, Databank Services, which also engaged in background research business.The charge alleges that between June 8 and October 4, 2018, the defendant falsely represented to Bank of Communications (HK) that the name of Databank Research would be changed to Databank Services and that the website of Databank Research would be changed to a new one.The defendant, with intent to defraud, allegedly induced Bank of Communications (HK) to engage Databank Services to provide services to it, which resulted in benefit to him or in prejudice to Databank Research.It is alleged that service payments totalling over $32,000 were incurred as a result of the defendant’s false representation to the bank.Databank Research and Bank of Communications (HK) have rendered full assistance to the ICAC during its investigation into the case.The defendant has been released on ICAC bail, pending his court appearance on Friday. 21
Sep 2020Ex-supervisor of bakery charged with bribery and fraud over subordinates’ false attendanceA former supervisor of a bakery was charged by the ICAC last Friday (September 18) for separately conspiring with two subordinates to defraud the bakery of wages totalling about $25,000 by falsifying attendance records and accepting bribes totalling over $22,000 from them.Koo Chi-fu, 40, former senior supervisor of A-1 Bakery Co., (HK) Limited (A-1 Bakery), faces four charges – two of conspiracy for an agent to accept advantages, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance, and two of conspiracy to defraud, contrary to Common Law.The defendant will appear in the Sha Tin Magistrates’ Courts tomorrow (September 22) for plea.At the material time, the defendant was employed by A-1 Bakery as a senior supervisor. He was posted to work at a baking factory in Shatin during night shifts, responsible for preparing duty rosters and supervising his subordinates, including a senior team leader and a senior baker.Staff members working at the baking factory were required to tap their staff cards on a card reader when reporting on and off duty to record their attendance.Two of the charges allege that between January 3, 2017 and March 7, 2019, the defendant conspired together with the aforesaid senior team leader and senior baker separately to defraud A-1 Bakery by falsely representing that the duo had reported duties at the baking factory, thereby causing and inducing A-1 Bakery to pay wages totalling about $25,000 to them.The two remaining charges allege that between January 3, 2017 and January 30, 2019, the defendant conspired together with the senior team leader and senior baker separately for the defendant to, without lawful authority or reasonable excuse, accept over $22,000 in total from the duo as an inducement to or reward for tapping their staff cards to help them report duties when they were in fact absent from work.It is alleged that the defendant had helped the duo to report duties by tapping their staff cards on 45 occasions.A-1 Bakery has rendered full assistance to the ICAC during its investigation.The defendant has been released on ICAC bail, pending his court appearance tomorrow. 18
Sep 2020Ex-employee of toy manufacturer charged with attempted fraud over expenses reimbursementA former employee of a toy manufacturer has been charged by the ICAC today (September 18) with attempting to deceive the company into reimbursing her for photography service payments.Jiang Lizhen, 34, former human resources officer of Kiu Hung International Holdings Limited (Kiu Hung), faces one count of attempted fraud, contrary to Section 16A of the Theft Ordinance and Section 159G of the Crimes Ordinance.The defendant will appear in the Eastern Magistrates’ Courts next Tuesday (September 22) for plea.The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offence.At the material time, the defendant was a human resources officer of Kiu Hung. She was responsible for organising a corporate function held on September 11, 2018 which required photography service. A photography service provider agreed to take up the job at a charge of $1,500.The charge alleges that between September 12 and October 3, 2018, the defendant falsely represented to Kiu Hung in her application for expenses reimbursement that two payments totalling $4,500 had been made to a photography service provider, and with intent to defraud, attempted to induce Kiu Hung to approve the application, which would result in benefit to her or in prejudice to Kiu Hung.It is alleged that the photography service provider had never received the aforesaid payments of $4,500, though the defendant had transferred $1,500 to its proprietor on September 19, 2018.Kiu Hung 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 next Tuesday. 17
Sep 2020Ex-directors of travel agency charged with embezzling $4.2m and publishing false directors’ reportsTwo former directors of a travel agency were charged by the ICAC yesterday (September 16) with stealing a total of over $4.2 million from the agency and publishing false directors’ reports to conceal the embezzlement.Fung Ping-fai, 68; and Leung Wai-keung, 55, both former directors of Wing Hang Travel Company Limited (Wing Hang), jointly face two charges – one of theft, contrary to Section 9 of the Theft Ordinance, and one of publishing a false statement, contrary to Section 21(1) of the Theft Ordinance. Fung further faces another count of publishing a false statement.The defendants will appear in the Eastern Magistrates’ Courts tomorrow (September 18) 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 offences.At the material time, Fung and Leung were two of the four directors and equal shareholders of Wing Hang which sourced overseas travel services for local travel agencies.The theft charge alleges that between January 18, 2012 and January 3, 2014, Fung and Leung stole a total of over $4.2 million from Wing Hang.Another charge alleges that on or about June 19, 2013, Fung and Leung, with intent to deceive members of Wing Hang about its affairs, concurred in publishing the Directors’ Report and Accounts for 2012, which to their knowledge was misleading, false or deceptive.The remaining charge alleges that on or about July 21, 2014, Fung, with intent to deceive members of Wing Hang about its affairs, concurred in publishing the Directors’ Report and Accounts for 2013, which to his knowledge was misleading, false or deceptive.It is alleged that the amount of Cost of Services contained in the aforesaid reports and accounts had been inflated.Wing Hang 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. 16
Sep 2020Ex-manager of property management company charged with pool repair payment fraudA former technical manager of a property management company was charged by the ICAC yesterday (September 15) with using false documents to deceive the company into making payment for repairing a swimming pool of a private housing estate.Tung Pak-nam, 44, former senior assistant technical manager of Well Born Real Estate Management Limited (Well Born), faces one count of agent using document with intent to deceive his principal, contrary to Section 9(3) of the Prevention of Bribery Ordinance.The defendant will appear in the Sha Tin Magistrates’ Courts tomorrow (September 17) for plea.At the material time, a subsidiary of Well Born was engaged to provide property management services to Double Cove, a private housing estate in Ma On Shan. The defendant, a senior assistant technical manager of Well Born, headed Double Cove’s technical department which was responsible for all maintenance matters of the estate.The charge alleges that on an unknown date between May 15 and October 18, 2018, the defendant, with intent to deceive Well Born, used a work completion certificate and an invoice issued by a decoration company to mislead Well Born.The two documents concerned allegedly contained a statement which was false, namely the swimming pool repairing work of Double Cove was done by the aforesaid decoration company.The aforesaid repairing work had allegedly incurred a payment of $28,000.Well Born has rendered full assistance to the ICAC during its investigation into the case.The defendant has been released on ICAC bail, pending his court appearance tomorrow.
Sep 2020Ex-employee of background research company charged with fraud over business diversionA former employee of a background research company has been charged by the ICAC today (September 23) with fraud by falsely representing to a bank that his employer was renamed so as to divert its business to his own company.Lee Sin-lun, 43, former sales executive of Databank Research Company (Databank Research), faces one count of fraud, contrary to Section 16A of the Theft Ordinance.The defendant will appear in the Shatin Magistrates’ Courts on Friday (September 25) for plea.The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offence.At the material time, the defendant was a sale executive of Databank Research which provided Companies Registry and Business Registration Office check services to local licensed banks, including Bank of Communications (Hong Kong) Limited (Bank of Communications (HK)).In June 2018, the defendant solely set up a company, Databank Services, which also engaged in background research business.The charge alleges that between June 8 and October 4, 2018, the defendant falsely represented to Bank of Communications (HK) that the name of Databank Research would be changed to Databank Services and that the website of Databank Research would be changed to a new one.The defendant, with intent to defraud, allegedly induced Bank of Communications (HK) to engage Databank Services to provide services to it, which resulted in benefit to him or in prejudice to Databank Research.It is alleged that service payments totalling over $32,000 were incurred as a result of the defendant’s false representation to the bank.Databank Research and Bank of Communications (HK) have rendered full assistance to the ICAC during its investigation into the case.The defendant has been released on ICAC bail, pending his court appearance on Friday. 21
Sep 2020Ex-supervisor of bakery charged with bribery and fraud over subordinates’ false attendanceA former supervisor of a bakery was charged by the ICAC last Friday (September 18) for separately conspiring with two subordinates to defraud the bakery of wages totalling about $25,000 by falsifying attendance records and accepting bribes totalling over $22,000 from them.Koo Chi-fu, 40, former senior supervisor of A-1 Bakery Co., (HK) Limited (A-1 Bakery), faces four charges – two of conspiracy for an agent to accept advantages, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance, and two of conspiracy to defraud, contrary to Common Law.The defendant will appear in the Sha Tin Magistrates’ Courts tomorrow (September 22) for plea.At the material time, the defendant was employed by A-1 Bakery as a senior supervisor. He was posted to work at a baking factory in Shatin during night shifts, responsible for preparing duty rosters and supervising his subordinates, including a senior team leader and a senior baker.Staff members working at the baking factory were required to tap their staff cards on a card reader when reporting on and off duty to record their attendance.Two of the charges allege that between January 3, 2017 and March 7, 2019, the defendant conspired together with the aforesaid senior team leader and senior baker separately to defraud A-1 Bakery by falsely representing that the duo had reported duties at the baking factory, thereby causing and inducing A-1 Bakery to pay wages totalling about $25,000 to them.The two remaining charges allege that between January 3, 2017 and January 30, 2019, the defendant conspired together with the senior team leader and senior baker separately for the defendant to, without lawful authority or reasonable excuse, accept over $22,000 in total from the duo as an inducement to or reward for tapping their staff cards to help them report duties when they were in fact absent from work.It is alleged that the defendant had helped the duo to report duties by tapping their staff cards on 45 occasions.A-1 Bakery has rendered full assistance to the ICAC during its investigation.The defendant has been released on ICAC bail, pending his court appearance tomorrow. 18
Sep 2020Ex-employee of toy manufacturer charged with attempted fraud over expenses reimbursementA former employee of a toy manufacturer has been charged by the ICAC today (September 18) with attempting to deceive the company into reimbursing her for photography service payments.Jiang Lizhen, 34, former human resources officer of Kiu Hung International Holdings Limited (Kiu Hung), faces one count of attempted fraud, contrary to Section 16A of the Theft Ordinance and Section 159G of the Crimes Ordinance.The defendant will appear in the Eastern Magistrates’ Courts next Tuesday (September 22) for plea.The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offence.At the material time, the defendant was a human resources officer of Kiu Hung. She was responsible for organising a corporate function held on September 11, 2018 which required photography service. A photography service provider agreed to take up the job at a charge of $1,500.The charge alleges that between September 12 and October 3, 2018, the defendant falsely represented to Kiu Hung in her application for expenses reimbursement that two payments totalling $4,500 had been made to a photography service provider, and with intent to defraud, attempted to induce Kiu Hung to approve the application, which would result in benefit to her or in prejudice to Kiu Hung.It is alleged that the photography service provider had never received the aforesaid payments of $4,500, though the defendant had transferred $1,500 to its proprietor on September 19, 2018.Kiu Hung 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 next Tuesday. 17
Sep 2020Ex-directors of travel agency charged with embezzling $4.2m and publishing false directors’ reportsTwo former directors of a travel agency were charged by the ICAC yesterday (September 16) with stealing a total of over $4.2 million from the agency and publishing false directors’ reports to conceal the embezzlement.Fung Ping-fai, 68; and Leung Wai-keung, 55, both former directors of Wing Hang Travel Company Limited (Wing Hang), jointly face two charges – one of theft, contrary to Section 9 of the Theft Ordinance, and one of publishing a false statement, contrary to Section 21(1) of the Theft Ordinance. Fung further faces another count of publishing a false statement.The defendants will appear in the Eastern Magistrates’ Courts tomorrow (September 18) 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 offences.At the material time, Fung and Leung were two of the four directors and equal shareholders of Wing Hang which sourced overseas travel services for local travel agencies.The theft charge alleges that between January 18, 2012 and January 3, 2014, Fung and Leung stole a total of over $4.2 million from Wing Hang.Another charge alleges that on or about June 19, 2013, Fung and Leung, with intent to deceive members of Wing Hang about its affairs, concurred in publishing the Directors’ Report and Accounts for 2012, which to their knowledge was misleading, false or deceptive.The remaining charge alleges that on or about July 21, 2014, Fung, with intent to deceive members of Wing Hang about its affairs, concurred in publishing the Directors’ Report and Accounts for 2013, which to his knowledge was misleading, false or deceptive.It is alleged that the amount of Cost of Services contained in the aforesaid reports and accounts had been inflated.Wing Hang 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. 16
Sep 2020Ex-manager of property management company charged with pool repair payment fraudA former technical manager of a property management company was charged by the ICAC yesterday (September 15) with using false documents to deceive the company into making payment for repairing a swimming pool of a private housing estate.Tung Pak-nam, 44, former senior assistant technical manager of Well Born Real Estate Management Limited (Well Born), faces one count of agent using document with intent to deceive his principal, contrary to Section 9(3) of the Prevention of Bribery Ordinance.The defendant will appear in the Sha Tin Magistrates’ Courts tomorrow (September 17) for plea.At the material time, a subsidiary of Well Born was engaged to provide property management services to Double Cove, a private housing estate in Ma On Shan. The defendant, a senior assistant technical manager of Well Born, headed Double Cove’s technical department which was responsible for all maintenance matters of the estate.The charge alleges that on an unknown date between May 15 and October 18, 2018, the defendant, with intent to deceive Well Born, used a work completion certificate and an invoice issued by a decoration company to mislead Well Born.The two documents concerned allegedly contained a statement which was false, namely the swimming pool repairing work of Double Cove was done by the aforesaid decoration company.The aforesaid repairing work had allegedly incurred a payment of $28,000.Well Born has rendered full assistance to the ICAC during its investigation into the case.The defendant has been released on ICAC bail, pending his court appearance tomorrow.