Integrity Focus

An ICAC corruption investigation earlier revealed that four people had conspired with others to deceive Japanese investors into investing over JPY400 million (about HK$28.4 million) in a number of companies which claimed to take part in investment projects in Africa by falsely representing that those companies’ bank accounts held asset totalling over HK$37 billion, and by using false bank documents. Two of the former bank managers, charged by the Commission, today (December 21) pleaded guilty to conspiracy to defraud at the District Court.

The two former relationship managers of Standard Chartered Bank (Hong Kong) Limited (Standard Chartered Bank), Woo Man-ho and Chan Tak-ching, both 36, pleaded guilty to a total of four counts of conspiracy to defraud, contrary to the Common Law. Three other similar charges against the duo were left on file at the District Court.

Judge Mr Clement Lee Hing-nin adjourned the case to August 22 next year for sentence. Both Woo and Chan were granted bail.

The court heard that at the material time, Woo and Chan were relationship managers of Standard Chartered Bank respectively working at its business banking department and priority banking department. The bank would issue documents to confirm the balance of a client’s account held with the bank upon request, but the duo were not authorised to sign and issue those documents.

Woo and Chan admitted that between January 2015 and September 2016, they had conspired with another then relationship manager of Standard Chartered Bank, a self-employed financial consultant and four foreign nationals to defraud various Japanese investors to invest in ADF Capital Limited (ADF) and a number of companies by using false proof of fund letters and corporate refund promissory notes (CRPNs) purportedly signed by Woo and Chan, and issued by Standard Chartered Bank.

The four foreign nationals involved were two shareholders-cum-directors of ADF, respectively a Zambian man and a Korean man; a Thai man who was Chan’s client; and a Japanese woman who was a company director.

Woo admitted that he had conspired with the Zambian man to falsely represent that the man’s company had funds of US$1.5 billion (about HK$11.6 billion) available for investments in Africa by issuing a false proof of fund letter.

Meanwhile, Woo and Chan admitted that they had conspired with the self-employed financial consultant and the Thai man to falsely represent that the Thai man had asset of 3.3 billion euros (about HK$25.5 billion) in the bank account held with Standard Chartered Bank, and to issue eight false proof of fund letters.

The duo further admitted that they had conspired with the relationship manager of Standard Chartered Bank, the self-employed financial consultant and three of the foreign nationals to falsely represent that Standard Chartered Bank was the guarantor of ADF which undertook to pay the relevant investors by issuing four false CRPNs.

The four CRPNs involved promised returns totalling US$7.2 million (over HK$56 million). As a result of the false representations, various Japanese investors were deceived into making investments totalling at least JPY400 million (about HK$28.4 million) to ADF and a number of companies involved in this case.

The ICAC investigation arose from a corruption complaint. Enquiries revealed that Standard Chartered Bank had never held the abovementioned asset on behalf of the Thai man, while the Zambian man’s company had never held any bank account with the bank.

Co-defendants Leung Ho-yin, 37, former relationship manager of Standard Chartered Bank; and Law Man-fai, 49, self-employed financial consultant; earlier pleaded not guilty to two of the abovementioned conspiracy to defraud charges. Another co-defendant Catherine Kum Kit-ching, 55, manager of ADF, earlier pleaded not guilty to one count of conspiracy to deal with property known or believed to represent proceeds of indictable offence. The trial against the trio was set for July 2, 2024.

Standard Chartered Bank had rendered full assistance to the ICAC during its investigation into the case. The ICAC does not rule out further law enforcement actions against other persons involved in the case.

The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Janice Chan.