Recent ICAC Cases

11
Sep 2020
Director and workers of plumbing subcontractor charged with wages fraud

A director and two former workers of a plumbing subcontractor have been charged by the ICAC today (September 11) in two cases for defrauding two contractors of additional wages totalling at least $360,000 by overstating the daily wages of a number of workers.

In the first case, the defendants are Walter Wong Chun-ming, 40, director of Legend Plumbing Engineering Limited (Legend), and Lung Wai-shing, 30, former worker of Legend. They will appear in the Kwun Tong Magistrates’ Courts next Tuesday (September 15) for plea.

Wong faces one count of fraud, contrary to Section 16A(1) of the Theft Ordinance, while Lung faces one count of conspiracy to defraud, contrary to Common Law.

Legend is an engineering company specialised in plumbing works. In 2014, part of the plumbing works of a remodelling project for an office complex in Tsim Sha Tsui was subcontracted to Legend. On behalf of Legend, Wong signed employment contracts with a number of workers, including Lung, and their wages were paid by the main contractor of the project.

The charge against Wong alleges that between January 1, 2016 and June 27, 2018, he falsely represented to the main contractor of the Tsim Sha Tsui project the amount of wages payable to workers deployed to work in the project, and induced the main contractor to pay them wages more than they should have received, which resulted in benefit to Wong or in prejudice to the main contractor.

The charge against Lung alleges that between November 2, 2015 and June 27, 2018, he conspired together with Wong to defraud the aforesaid main contractor by falsely representing that the agreed daily wage of Lung was that as stated in his employment contract with Legend, thereby induced the main contractor to pay Lung daily wage more than the agreed daily wage.

It is alleged that the daily wages of the workers stated in their employment contracts were inflated by $250 to $450. Additional wages totalling at least $340,000, including over $91,000 from Lung, were allegedly returned to Wong.

In the second case, Chan Pui-fung, 27, former worker of Legend, faces one count of conspiracy to defraud, contrary to Common Law. He will appear in the West Kowloon Magistrates’ Courts next Tuesday (September 15) for plea.

In 2016, Legend was engaged in another plumbing project in Ma On Shan as the third-tier subcontractor. A representative of Legend was responsible for recruiting workers, including Chan, for the second-tier subcontractor.

The charge alleges that between January 25 and June 7, 2018, Chan conspired together with the Legend representative to defraud the second-tier subcontractor of the Ma On Sha project by falsely representing that the agreed daily wage of Chan was that as stated in his employment contract with the second-tier subcontractor, thereby induced the second-tier subcontractor to pay Chan daily wage more than the agreed daily wage.

It is alleged that Chan’s daily wage stated in his employment contract was inflated by about $350 and he had received additional wages totalling $21,000 from the second-tier subcontractor.

The cases arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offences.

The main contractor of the Tsim Sha Tsui project and the second-tier subcontractor of the Ma On Shan project have rendered full assistance to the ICAC during its investigation into the cases.

The defendants have been released on ICAC bail, pending their court appearance next Tuesday.

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