Integrity Focus

A property investor and his mother, charged by the ICAC, were today (December 13) each sentenced to 30 months’ imprisonment at the District Court for conspiracy to defraud by deceiving an investment partner into paying an agency commission of over $750,000 in the purchase of a shopping centre at $168 million revealed in a bribery probe.

Tse Yiu-sing, 39, sole director-cum-shareholder of Landcorp Properties Limited (Landcorp), and his mother Sin Yuk-ling, 68, were earlier convicted of one count of conspiracy to defraud, contrary to Common Law.

In sentencing, Deputy Judge Mr Kenneth Chan Ping-chau said the defendant committed the offence out of greed. The deputy judge added that deterrent sentences were inevitable as it was the responsibility of the court to maintain a level playing field for businesses in Hong Kong.

The court heard that in June 2019, Tse invited an investment partner to jointly acquire Greenview Court Shopping Centre in Tsuen Wan. It was agreed that Total Link Limited (Total Link) would be acquired as a vehicle for purchasing the shopping centre. Sin and the investment partner respectively held 55 per cent shares and 45 per cent shares of Total Link, and all costs and profits in relation to the purchase of the shopping centre would be shared on a pro rata basis.

In July 2019, Total Link signed a provisional sale and purchase agreement with the vendor via Midland Realty (Shops II) Limited (Midland) for purchasing the shopping centre at $168 million. Total Link was required to pay one per cent of the transaction price, i.e. $1.68 million, as agency commission to Midland. According to the above agreement, the investment partner should bear $750,000 of it.

The ICAC investigation arose from a corruption complaint. Enquiries revealed that Landcorp reached another agreement with Midland through Sin to procure the transaction. According to the agreement, Midland and Landcorp would cooperate to procure the transaction. Midland would retain 20 per cent of the agency commission concerned, while the remaining 80 per cent would be paid to Landcorp, which was owned by Tse.

However, Tse and Sin concealed from the investment partner the agreement, with intent to induce the investment partner to pay $750,000 agency commission and to obtain the percentage of agency commission Landcorp entitled to receive.

The transaction was eventually terminated and Total Link did not complete the purchase of the shopping centre.

The prosecution was today represented by Senior Public Prosecutor Joey Lin, assisted by ICAC officer Chacha Chan.