Recent ICAC Cases

06
Oct 2020
SME director in court for $19m banking facilities fraud

A director of a Small and Medium Enterprise (SME) appeared in the Eastern Magistrates’ Courts this afternoon (October 6) after being charged by the ICAC with using false audited reports and bank statements of the company to support its applications for banking facilities totalling $19 million with two banks.

Fong Kam-sang, 49, sole director and shareholder of now defunct Hong Kong Lotte International Trading Co. Limited (HKLIT), faced five counts of using copies of false instruments, contrary to Section 74 of the Crimes Ordinance.

No plea was taken today. Principal Magistrate Ms Bina Chainrai transferred the case to the District Court for plea on October 27.

The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offences, which took place between November 2013 and June 2015.

Upon the request of his twin brother and the de facto owner of HKLIT, a giftware trading company, the defendant became its sole director and shareholder in August 2010.

Three of the charges alleged that the defendant used copies of false instruments with the intention of inducing a bank to accept them as genuine, and by reason of accepting them to do or not to do some act to the bank’s prejudice.

The copies of false instruments were allegedly three sets of audited reports and financial statements of HKLIT for the financial years of 2011/12, 2012/13 and 2013/14 issued by an accounting firm, as well as statements of a bank account of HKLIT.

The remaining two charges alleged that the defendant used copies of false instruments with the intention of inducing another bank to accept them as genuine, and by reason of accepting them to do or not to do some act to the bank’s prejudice.

It was alleged that the copies of false instruments were the same three sets of the abovementioned audited reports and financial statements of HKLIT, and other statements of the aforesaid bank account of HKLIT.

As a result, the two banks were said to have been induced to approve banking facilities worth totalling $19 million to HKLIT.

The two banks and the accounting firm concerned have rendered full assistance to the ICAC during its investigation into the case.

The defendant was granted cash bail of $10,000, and ordered not to leave Hong Kong and contact prosecution witnesses directly or indirectly.

The prosecution was today represented by ICAC officer Benjamin Ho.

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