Integrity Focus

A former project manager of a fabric company was charged by the ICAC yesterday (August 2) with fraud for making false representations to cause three customers to place orders worth totalling about $1 million with two companies owned by his associates and laundering crime proceeds of about $720,000.

Li Ka-wing, 51, former project manager of Showtex Hong Kong Limited (Showtex HK), faces three counts of fraud and one count of attempted fraud, contrary to section 16A of the Theft Ordinance and section 159G of the Crimes Ordinance.

Li and co-defendant Zhao Bingguo, 40, operator of Maban Trading Co., Limited (Maban) further face five counts of dealing with property known or believed to represent proceeds of an indictable offence, contrary to section 25(1) of the Organized and Serious Crimes Ordinance.

The defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (August 4) for mention. The prosecution will apply for transferring the case to the District Court for plea.

Li was a project manager of Showtex HK responsible for sourcing business for it when the alleged offences took place between June 2018 and April 2019. Showtex HK supplied flame retardant curtain fabrics, installed stage projection screen and provided event decoration services.

It is alleged that Li, with intent to defraud, separately induced or attempted to induce three customers of ShowtexHK to place orders with Maban and another company by making false representations that Maban and that company were subcontractors of Showtex HK, dealt with the same factory with Showtex HK or Showtex HK was unable to do the processing works in relation to the relevant fabric.

The ICAC investigation arose from a corruption complaint. Enquires revealed that Maban and that company were not subcontractors of Showtex HK and they had no dealings with Showtex HK and its factory. The orders placed by the three customers worth totalling about $1 million. Enquiries also revealed that Li arranged Showtex HK to take up most of the items in the orders through fraudulent means.

Investigation revealed that Maban and that company respectively engaged in knife trading and multimedia businesses. Zhao and the operator of that company were former employees of Showtex HK.

Li and Zhao also allegedly dealt with crime proceeds of about $720,000, which was out of the above $1 million.

Showtex HK has rendered full assistance to the ICAC during its investigation into the case.