Recent ICAC Cases

16
Apr 2021
Ex-manager of lighting product company charged with fraud involving $6.6m discount and subsidy

The ICAC today (April 16) charged a former manager of a lighting product company with fraud by concealing his wife’s interest in a trading company when handling various transactions between the two companies involving sums of discount and subsidy totalling at least about $6.6 million.

Leung Chun-hei, 40, former senior sales manager of Philips Lighting Hong Kong Limited (Philips Lighting), faces two counts of fraud, contrary to Section 16A(1) of the Theft Ordinance.

The defendant will appear in the Kwun Tong Magistrates’ Courts next Tuesday (April 20) for the case to be transferred to the District Court for plea.

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

Philips Electronics Hong Kong Limited (Philips Electronics) is a company which supplies electronic products, including lighting products. The defendant joined Philips Electronics in April 2003. In February 2016, the defendant was transferred to Philips Lighting after it was set up to specialise in selling lighting products.

During his employment with the two companies, the defendant was responsible for handling orders placed by customers, including Supreme Profits International Limited (Supreme Profits)—a trading company in which his wife was the sole shareholder-cum-director.

The charges allege that between September 16, 2013 and November 7, 2018, the defendant concealed from or failed to disclose to Philips Electronics and Philips Lighting his wife’s interest in Supreme Profits whilst he was under a duty as an employee to make full disclosure of any existing or potential conflict of interest to the two companies, and with intent to defraud, induced the two companies to continue to authorise him to handle orders placed by Supreme Profits with them.

It is alleged that during the aforesaid period, over 6,300 purchase orders were placed by Supreme Profits with Philips Electronics and Philips Lighting, which offered sums of discount and subsidy totalling at least about $6.6 million to Supreme Profits.

Philips Electronics and Philips Lighting 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 next Tuesday.

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