Recent ICAC Cases

23
Nov 2021
Duo charged by ICAC with fraud over $6.3m loans

A then director and a then part-time employee of a trading company were charged by the ICAC yesterday (November 22) with defrauding a bank and two licensed money lenders of loans totalling over $6.3 million by making false representations on the employment and monthly income of the employee in various loan applications.

The ICAC investigation arose from a corruption complaint. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised laying six charges against the duo.

Lai Mei-tan, 54, former part-time employee of Wenxin.Xinyangmaojian Investment (HK) Limited (Wenxin, now defunct, also known as Xenin.Xinyangmaojian Investment (HK) Limited and Wenxin.Xinyangmaojian Investment Limited); and Ling Yuen-mei (formerly known as Ling Chun-mui), 59, sole director-cum-shareholder of Wenxin, jointly face one count of conspiracy to defraud, contrary to Common Law.

Lai alone further faces four counts of fraud, contrary to Section 16A of the Theft Ordinance; while Ling alone faces one count of forgery, contrary to Section 71 of the Crimes Ordinance.

The defendants were released on ICAC bail, pending their appearance in the Eastern Magistrates’ Courts tomorrow (November 24) for the case to be transferred to the District Court for plea.

At the material time, Ling was the sole director-sum shareholder of Wenxin. Lai was a part-time employee of Wenxin.

The alleged offences took place between May 2016 and May 2018.

One of the charges alleges that Lai falsely represented to Hang Seng Bank Limited (Hang Seng Bank) that she was employed by Wenxin as a sales manager and earned a monthly income of $50,000 and with intent to defraud, induced Hang Seng Bank to grant the mortgage loan application of Lai and her husband, which resulted in benefit to the couple or in prejudice to Hang Seng Bank.

Three other charges allege that Lai falsely represented to Promise (Hong Kong) Co., Limited (Promise HK) and Easy One Finance Limited (Easy One Finance) on three occasions that she was employed by Wenxin and earned a monthly income of $48,500 or $50,000 and with intent to defraud, induced Promise HK and Easy One Finance to grant the loan applications of Lai which resulted in benefit to her or in prejudice to Promise HK and Easy One Finance.

Another charge alleges that Lai and Ling conspired together to defraud Promise HK by dishonestly falsely represented that Lai was employed by Wenxin and earned a monthly income of $48,500 thereby inducing Promise HK to grant the loan application of Lai.

The remaining charge alleges that Ling made a false instrument, namely a letter issued in the name of Wenxin stating that Lai was employed as the sales manager of Wenxin at a monthly salary of $50,000, with the intention that Lai should use it to induce somebody to accept it as genuine.

ICAC enquiries revealed that five loans totalling over $6.3 million were allegedly granted by Hang Seng Bank, Promise HK and Easy One Finance to Lai as a result of the false representations made by the defendants.

Hang Seng Bank, Promise HK and Easy One Finance have rendered full assistance to the ICAC during its investigation into the case.

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