Integrity Focus

An ICAC corruption investigation earlier revealed that a certified public accountant had stolen over USD1.25 million in total from two companies when he served as a trustee handling their business and financial affairs. The defendant, convicted of theft after trial, was today (February 7) sentenced to five years’ imprisonment at the District Court.

Cheung Hing-chik, 76, was earlier found guilty of two counts of theft, contrary to Section 9 of the Theft Ordinance.

In sentencing, Deputy District Judge Casewell remarked that the acts of the defendant constituted a serious breach of trust. Earlier in convicting the defendant, the judge reprimanded him for abusing his position as a trustee. The defendant had acted dishonestly and fraudulently, which was a clear breach of his fiduciary duties.

The court heard that at the material time, the defendant was entrusted by a couple residing outside Hong Kong to handle business and financial affairs of two companies, which respectively engaged in arts trading and securities investment. The defendant was the sole authorised signatory for bank accounts of the two companies but he was not permitted to dispose of any funds or securities of the companies without the couple’s consent. He was also required to provide the relevant bank passbook to the couple for regular check.

The ICAC investigation revealed that between February 2016 and January 2020, the defendant had transferred over USD1.25 million in the bank accounts of the two companies to his personal bank accounts on over 50 occasions without the consent of the couple.

In order to conceal his embezzlement, the defendant had falsely represented to the couple that he had lost the bank passbook and provided multiple bank account transaction records containing false information to them for checking. ICAC enquiries also revealed that the defendant had sold the securities held by one of the companies without the consent of the couple and misappropriated the proceeds.

The prosecution was today represented by Senior Public Prosecutor Steven Liu, assisted by ICAC officer Carla Yeung.

The ICAC has been collaborating with various professional bodies in the accounting industry to provide integrity training to accounting professionals, reminding them to uphold professional ethics and the highest standard of integrity so as to protect the clients’ and the public interest. Last year, the ICAC co-hosted a professional anti-corruption course with the Hong Kong Institute of Certified Public Accountants for the first time to enhance the professional ethics standards of accountants. Accounting professionals can visit the website of the Hong Kong Business Ethics Development Centre of the ICAC for more information about the corruption prevention resources related to the industry.