Integrity Focus

A then general manager of a pharmaceutical wholesaler and his subordinate were charged by the ICAC yesterday (November 12) for making false representation about consultancy and other services provided by a secretarial services company operated by the subordinate to defraud the pharmaceutical wholesaler of service fees totalling over $1.1 million. Meanwhile, a business partner of the subordinate was charged with money laundering.

Watson Yau Wei-ching, 54, then general manager of Kingworld Medicine Healthcare Limited (Kingworld Medicine); and Alen Yu Yuen-to, 43, then marketing officer of Kingworld Medicine, jointly face two counts of fraud, contrary to section 16A(1) of the Theft Ordinance. Yau further faces another count of fraud.

Co-defendant Chau Pak-ho, 40, director cum shareholder of Asia Great Services Limited (Asia Great), faces one count of dealing with property known or believed to represent proceeds of an indictable offence (commonly known as money laundering), contrary to section 25(1) of the Organized and Serious Crimes Ordinance.

The three defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (November 14) for mention. The prosecution will later apply for transferring the case to the District Court for plea.

Between February 2017 and September 2023, Kingworld Medicine was a distributor and wholesaler of pharmaceuticals and healthcare products in Hong Kong and the Mainland. Yau oversaw sales and marketing of Kingworld’s products, while Yu was his subordinate. Yu and Chau were also directors and shareholders of Asia Great which provided secretarial services to clients.

Hong Kong Ling Feng Advertising Company Limited (Ling Feng Advertising) was a contractor of Kingworld Medicine responsible for promoting its products. Kingworld Medicine would pay the contract sum to Ling Feng Advertising in advance for deduction of the product promotion costs.

The charge alleges that Yau and Yu had falsely represented to Kingworld Medicine that seven invoices issued by Asia Great were genuine, and with intent to defraud, induced Kingworld Medicine to pay Asia Great consultancy services fees totalling over $530,000. Yau, with intend to defraud, also allegedly induced Kingworld Medicine to pay Asia Great print and design services fees in a sum of $62,000 by similar means.

It is also alleged that the duo had falsely represented to Ling Feng Advertising that six invoices issued by Asia Great were genuine, and with intent to defraud, induced Ling Feng Advertising to pay consultancy services fees totalling over $540,000 to Asia Great on behalf of Kingworld Medicine, and deduct an amount of over $580,000 from the contract sum of an annual advertising contract between Kingworld Medicine and Ling Feng Advertising.

The ICAC investigation arose from a corruption complaint. Enquiries revealed that Asia Great had never provided Kingworld Medicine with the services stated in the invoices concerned.

Meanwhile, co-defendant Chau is alleged to have dealt with a sum of about $180,000 in the bank account of Asia Great, knowing or having reasonable grounds to believe that it, in whole or in part, directly or indirectly represented proceeds of an indictable offence.

Kingworld Medicine and Ling Feng Advertising rendered full assistance to the ICAC during its investigation into the case.