Integrity Focus
Recent ICAC Cases
Aug 2024Former staff of frozen meat supplier charged by ICAC for allegedly concealing his operation of same business and deceiving employer into selling goods valued over $5m
The ICAC today (Aug 13) charged a then senior sales executive of a frozen meat supplier, for allegedly concealing the conflict of interest during his employment and inducing the employer to sell goods to a company operated by him with the same business, deceiving goods supply valued over $5 million.
Cheng Ming-lim, 48, the then Senior Sales Executive of H.R. Woodward Food Service Co. Limited (H.R. Woodward), faces one count of fraud, contrary to section 16A of the Theft Ordinance. He was released on ICAC bail, pending his appearance at the West Kowloon Magistrates’ Courts on Thursday (August 15) for his case to be transferred to the District Court for plea.
The ICAC investigation arose from a corruption complaint. Inquiries subsequently revealed the alleged fraudulent claim. At the material time, Cheng was the Senior Sales Executive of H.R. Woodward who was responsible for securing customers for the H.R. Woodward and processing purchase orders received from customers.
He also had the discretion to set prices for purchase orders and payment terms. All staff member of H.R. Woodward were not allowed to operate any company or being employed under company which had the same business nature with H.R. Woodward. The employment contract also stated that Cheng should not be employed, own, manage, operate, control or participate in any related food services business.
The charge alleged that Cheng, between October 2020 and February 2022, by deceit, namely by concealing from or failing to disclose to H.R. Woodward his operation of Andreessen Food Service Company Limited (Andreessen), and with intend to defraud, induced H.R. Woodward to sell goods to Andreessen, which resulted in benefit to Andreessen or in prejudice to H.R. Woodward.
ICAC investigation revealed that Andreessen was incorporated in 2016 with the defendant’s then wife and mother as the sole shareholder-cum-director and secretary respectively. The defendant is alleged that after he introduced Andreessen to be a customer of H.R. Woodward in 2021, he had, in his capacity as the Senior Sales Executive of H.R. Woodward, handled the purchase orders placed by himself on behalf of Andreessen.
Between July and December 2021, Andreessen placed various purchase orders with H.R. Woodward in the total sum of over $5.23million. Later Andreessen failed to settle payments amounting around $5.12million. After returning of partial delivered products, Andreessen still failed to settle $2.71million with H.R. Woodward.
The H.R. Woodward rendered full assistance to the ICAC during its investigation into the case.