Recent ICAC Cases

22
Jan 2020
Ex-employee of knitwear manufacturer guilty of RMB1.3m fraud

A former employee of a knitwear manufacturer, charged by the ICAC, was today (January 22) convicted at the District Court of fraud in relation to the supply of unnecessary accessories worth totalling over RMB1.3 million.

 

Vincent Ngan Wai-shing, 49, former senior merchandising manager of Peninsula Knitters Limited (Peninsula Knitters), was found guilty of one count of fraud, contrary to Section 16A of the Theft Ordinance.

Deputy Judge Ms June Cheung Tin-ngan adjourned the case to February 19 for sentence. The defendant was remanded in the custody of the Correctional Services Department.

 

The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offence.

 

The court heard that Peninsula Knitters was a knitwear manufacturer which maintained two factories on the Mainland. As the head of one of the company’s sales teams, the defendant was responsible for negotiating prices with clients and obtaining quotations from suppliers.

 

Peninsula Knitters would subcontract an order if its own factories were unable to take it up or it was cheaper to subcontract it. The defendant was authorised to make such decisions, subject to the approval of the senior management of Peninsula Knitters.

 

In 2011, the defendant referred a Mainland accessories supplier to Peninsula Knitters. Between February 2014 and August 2015, the defendant falsely represented to Peninsula Knitters that the accessories stated on 18 sets of outsourcing application forms were required for the company’s production.

 

Believing that all the information on the forms were genuine, the senior management of Peninsula Knitters signed and approved those applications.

 

As a result, Peninsula Knitters was induced to place 32 orders worth over RMB1.3 million with the Mainland accessories supplier for unnecessary products, including various types of buttons, beads and lace ribbons.

The court heard that Peninsula Knitters eventually released payments totalling over RMB1 million to the Mainland accessories supplier.

 

Peninsula Knitters had rendered full assistance to the ICAC during its investigation into the case.

 

The prosecution was today represented by prosecuting counsel Liza Yip, assisted by ICAC officer Jackie Lam.

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