Integrity Focus
Recent ICAC Cases
Jun 2023Ex-chair of listed company and car dealer charged by ICAC over $6.2m saloon purchase fraud revealed in graft probe
In the course of a corruption investigation by the ICAC, it was revealed that a then chairman of a listed company and a car dealer allegedly inflated the price and the amount of first registration tax of a saloon purchased by the listed company by about $3.1 million. The duo were charged by the ICAC with conspiracy to defraud and fraud today (June 21).
Bruce Lee Chun-pong, former executive director cum chairman of PF Group Holdings Limited (PF Group) and Yeung Cho-yiu, director cum shareholder of Billion Target Holdings Limited (Bilion Target), both 39, jointly face one count of conspiracy to defraud, contrary to common Law. Lee alone further faces one count of fraud, contrary to section 16A of the Theft Ordinance.
The defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Friday (June 23) for mention. The prosecution will apply for transferring the case to the District Court for plea.
When the offences took place between December 2020 and March 2021, Lee was the executive director cum chairman of PF Group, which was listed on the GEM Board. Lee requested Yeung, a car dealer, to source a suitable saloon as he was entrusted to purchase one for the company.
It is alleged that Lee and Yeung conspired together to defraud PF Group by dishonestly falsely representing to PF Group that it was required to pay over $3.8 million to Billion Target for purchasing a saloon. Lee also allegedly falsely represented to PF Group that it was required to pay Billion Target about $2.4 million for settling the first registration tax of the saloon. PF Group therefore paid totalling about $6.2 million to Billion Target.
ICAC enquiries revealed that the published retail price and the amount of first registration tax of the saloon added up to about $3.1 million.
PF Group has rendered full assistance to the ICAC during its investigation into the case.
The ICAC attaches great importance to the integrity standard of listed companies, and has been actively promoting corruption prevention services and assisting business organisations in implementing good corporate governance. For details, please visit the webpage of the “Ethics Promotion Programme for Listed Companies”.