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May 2024Duty-free chain store’s ex-general manager charged by ICAC admits conspiracy to defraud over $12m inflated red wine purchaseA former general manager of a duty-free chain store, charged by the ICAC, today (May 16) admitted at the District Court that he had conspired with others to defraud the chain store by concealing his conflicting interest in companies set up by him to resell bottled red wine sourced from a French supplier to the chain store, making a huge profit by inflating the prices by $12 million.Lau Shu-yin, 77, former general manager of Sky Connection Limited (Sky Connection), pleaded guilty to one count of conspiracy to defraud, contrary to Common Law.Judge Mr Clement Lee Hing-nin adjourned the case to August 20 for sentence and granted the defendant bail. The Judge also approved the prosecution’s application for a confiscation order and adjourned the relevant hearing to June 17.Sky Connection sold duty-free goods under the business name “Free Duty”. Before the offence took place, Sky Connection’s merchandising and buying department used to source bottled red wine from a winery in France directly for sale at “Free Duty” shops.The court heard that between August 2004 and May 2011, Lau and other persons implicated in the case caused Sky Connection to change its practice and placed purchase orders with the French winery via Jetfair Development Limited (Jetfair) and Master Good Trading Limited (Master Good). During the period, 56 purchase orders involving payments totalling over $26 million were placed.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Jetfair and Master Good had sourced the bottled red wine concerned from the French winery at over $14 million and resold them to Sky Connection at inflated prices, causing Sky Connection to make extra payments of over $12 million.ICAC enquiries also revealed that Master Good and Jetfair were funded by Lau and two others and that Lau and his daughter were the sole shareholder-cum-director of Master Good and Jetfair respectively. But Lau had never disclosed to Sky Connection his association with the two companies.Lau admitted that he and the two funders shared the profits generated in the scam proportionally and he received about $2 million in total.Sky Connection required its staff to declare any conflict of interest and prohibited them from engaging in any business which might have a conflict with the company.Au Tsz-kei, former merchandising and buying director of Sky Connection, was earlier charged for his alleged role in the scam. He pleaded not guilty to one count of conspiracy to defraud and his trial was scheduled for July 22.Sky Connection had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Flora Cheng, assisted by ICAC officer May Lam.The ICAC reminds staff of business organisations to avoid conflict of interest and make declarations in strict adherence to internal guidelines. Concealing any conflict of interest in relation to one’s official duties to benefit himself or his associates may contravene the criminal law, such as the Prevention of Bribery Ordinance if offering or accepting of bribes is involved. 16
May 2024Woman gets two months’ jail for bribing TD examiner with mooncake voucher for getting a pass in driving testA woman, charged by the ICAC, was today (May 16) sentenced to two months’ imprisonment at the Shatin Magistrates’ Courts for offering a bribe, a mooncake voucher worth over $400, to a driving examiner of the Transport Department (TD) in a bid to get a pass after making a mistake during the parking test of private car driving test.Li Zhengchun, 54, earlier pleaded guilty to one count of offering an advantage to a public servant, contrary to section 4(1)(a) of the Prevention of Bribery Ordinance.In sentencing, Acting Principal Magistrate Ms Amy Chan Wai-mun reprimanded the defendant for bribing the driving examiner, which affected the fairness of the driving test system and undermined the public interest, adding that the court had to mete out an exemplary deterrent sentence to serve as a warning to the general public. The acting principal magistrate took a starting point of three months’ imprisonment, and reduced the jail term by one-third, having considered the defendant’s guilty plea.The court heard that the defendant took a private car driving test at TD’s Driving Test Centre in Hong Kong School of Motoring (Sha Tin) on September 14, 2023 when Mid-Autumn Festival was approaching. A Driving Examiner II of the TD was randomly assigned to be her examiner.In the parking test, the defendant made a serious mistake by parking half of the vehicle outside the boundary of the designated parking space. Afterwards the defendant offered a mooncake voucher worth over $400 to the examiner twice in a bid to get a pass in the driving test.The examiner failed the defendant in the test for her serious mistake and made a corruption remark on the test records and reported the incident to the TD. Upon receipt of a corruption complaint referred by the TD on the same day, ICAC officers arrested the defendant on the spot at the Driving Test Centre. The TD had also rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Joanne Wong.The ICAC works closely with government departments, through education and publicity, to ensure that civil servants uphold probity and say no to corruption. Bribery is a serious offence. Members of the public are reminded not to offer bribes to civil servants in exchange for assistance or favour. 14
May 2024Ex-HKUST Adjunct Associate Professor wanted by ICAC for $4m procurement fraud arrested in PolandA former Adjunct Associate Professor of the Hong Kong University of Science and Technology (HKUST) wanted by the ICAC was arrested in Poland in late April. Earlier on, a warrant for the arrest of the former Adjunct Associate Professor for allegedly conspiring with two others to conceal his interest in two suppliers in relation to various procurements that involved payments totalling about $4 million was issued by a Magistrate.Yeung Lam-lung, 59, former Adjunct Associate Professor of the Department of Chemistry of HKUST, faces a total of 17 charges – three of conspiracy to defraud, contrary to Common Law; and 14 of fraud, contrary to Section 16A(1) of the Theft Ordinance.In late April, the ICAC was informed by the Interpol that Yeung Lam-lung was detained by the Poland authorities in an international airport of Poland. Upon the ICAC’s request, the Department of Justice (DoJ) made an application to Poland for the provisional arrest of Yeung Lam-lung pursuant to the United Nations Convention against Corruption (UNCAC). A formal request for the surrender of Yeung Lam-lung is under preparation and will be made. The UNCAC has been ratified by the People’s Republic of China and the Republic of Poland, and is also applicable to the Hong Kong Special Administrative Region.The ICAC is grateful to the DoJ and Poland authorities for their valuable assistance in securing the arrest of Yeung Lam-lung.The alleged offences took place between September 2011 and February 2019. During the period, Yeung Lam-lung conducted 17 tendering and procurement exercises for the HKUST and its subsidiary to purchase various laboratory equipment and testing services from Chun Fo (Asia) Pharmaceutical Co., Limited (CFPL) and PIT Limited (PITL) in which Yeung Lam-lung had direct or indirect financial interests.In accordance with the regulations of the HKUST, Yeung Lam-lung was required to declare his conflict of interest with any suppliers before engaging them. Likewise, suppliers were required to declare whether any HKUST staff have any interest in them.In late 2011, Yeung Siu-on became PITL’s sole director and shareholder. When CFPL was incorporated in mid-2012, Yeung Siu-on was its sole director and shareholder while Au Yeung Siu-fung took over the position in late 2012.The conspiracy charges allege that Yeung Lam-lung had conspired with Au Yeung Siu-fung or Yeung Siu-on to defraud the HKUST by concealing Yeung Lam-lung’s interest in CFPL and PITL while he had a duty to disclose any conflict of interest to the university, but instead, he induced it to engage CFPL and PITL in three of the 17 tendering and procurement exercises, and caused it to settle invoices of the two suppliers in full.The remaining charges allege that Yeung Lam-lung, either with Au Yeung Siu-fung or Yeung Siu-on, induced the HKUST or its subsidiary to engage CFPL or PITL in the other 14 tendering and procurement exercises by concealing his interest in the two suppliers.The 17 tendering and procurement exercises involved payments totalling about $4 million.The case arose from a corruption complaint filed with the ICAC. Upon completion of the investigation, legal advice was sought from the DoJ, which advised charging the trio. As Yeung Lam-lung had already left Hong Kong when Yeung Siu-on and Au Yeung Siu-fung were charged in September 2022, a warrant for the arrest of Yeung Lam-lung was issued by a Magistrate in October 2022 upon the application made by the ICAC. In August 2023, Yeung Lam-lung was placed on the Interpol Red Notice for his apprehension.In October 2023, Yeung Siu-on was sentenced to 28 months’ imprisonment at the District Court after pleading guilty to 11 counts of conspiracy to defraud and fraud. Au Yeung Siu-fung, who pleaded not guilty to three counts of conspiracy to defraud and fraud, had his case adjourned to December 19 for verdict.HKUST had rendered full assistance to the ICAC during its investigation into the case. 14
May 2024Ex-employee of car dealer charged by ICAC for fraud over sale of $450,000 vehicle partsA former employee of a car dealer was charged by the ICAC yesterday (May 13) for allegedly deceiving his employer into selling vehicle parts of two European brands worth totalling about $450,000 to three vehicle parts dealers.Patrick Chu Kwok-wah, 54, former senior parts officer of Kam Lung Motors Limited (KLM), faces three counts of fraud, contrary to section 16A(1) of the Theft Ordinance. The defendant was released on ICAC bail, pending his appearance at the Kwun Tong Magistrates’ Courts on Thursday (May 16) for plea.KLM is the authorised car dealer of Volkswagen and Audi in Hong Kong. Besides providing after-sale services, KLM also sells vehicle parts to garages and car owners at its depot in Yau Tong. The sales policy of KLM prohibits its employees from selling vehicle parts to any vehicle parts dealers in order to avoid the dealers to resell the parts for profits.At the material time, the defendant was posted to the Yau Tong depot. His duties included handling the sale of vehicle parts. It is alleged that between January and August 2021, he falsely represented to KLM that various sales reports and sales invoices involving three garages were genuine, and with intent to defraud, induced KLM to sell vehicle parts worth totalling about $450,000 to three vehicle parts dealers, which resulted in prejudice to KLM.The ICAC investigation stemmed from a corruption complaint concerning the sale of vehicle parts. Enquiries revealed that about 60 purchase orders purportedly issued by the three garages were false, namely the garages had never purchased the relevant vehicle parts from KLM but in fact the defendant sold the parts to the three vehicle parts dealers. Had KLM known about the actual situation, it would not have allowed the sales to take place.KLM has rendered full assistance to the ICAC during its investigation into the case. 13
May 2024Two women charged by ICAC for bribing bank employee over account openingThe ICAC charged two women last Friday (May 10) for allegedly bribing a bank employee with a wad of banknotes for opening a personal bank account.Yu Hui, 26, executive; and Wang Jinyu, 37, live-streaming technician, jointly face one count of offering advantage to an agent, contrary to section 9(2)(a) of the Prevention of Bribery Ordinance. The duo were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (May 14) for plea.On April 19, 2024, Yu and Wang came to Hong Kong and visited a branch of The Hongkong and Shanghai Banking Corporation Limited (HSBC) in Wan Chai for opening personal bank accounts. They wished to complete the relevant procedures on the same day.It is alleged that on the same day, the defendants offered a bribe consisting of an unspecified sum of money to an employee of HSBC for assisting Yu to open a bank account with the bank.The bank employee immediately rejected the bribes offered by the duo and reported the matter to his supervisors immediately. ICAC officers arrested the two defendants on the spot immediately after receiving a corruption complaint.Enquiries by the ICAC revealed that the defendants allegedly offered an envelope containing a wad of HK$100 and HK$500 banknotes to the bank employee.HSBC has rendered full assistance to the ICAC during its investigation into the case.The ICAC reminds the public not to bribe bank staff in exchange for its services. Should anyone comes across any suspicion of corruption, he or she should report to the ICAC immediately. ICAC 24-hour Report Corruption Hotline: 25 266 366.
May 2024Duty-free chain store’s ex-general manager charged by ICAC admits conspiracy to defraud over $12m inflated red wine purchaseA former general manager of a duty-free chain store, charged by the ICAC, today (May 16) admitted at the District Court that he had conspired with others to defraud the chain store by concealing his conflicting interest in companies set up by him to resell bottled red wine sourced from a French supplier to the chain store, making a huge profit by inflating the prices by $12 million.Lau Shu-yin, 77, former general manager of Sky Connection Limited (Sky Connection), pleaded guilty to one count of conspiracy to defraud, contrary to Common Law.Judge Mr Clement Lee Hing-nin adjourned the case to August 20 for sentence and granted the defendant bail. The Judge also approved the prosecution’s application for a confiscation order and adjourned the relevant hearing to June 17.Sky Connection sold duty-free goods under the business name “Free Duty”. Before the offence took place, Sky Connection’s merchandising and buying department used to source bottled red wine from a winery in France directly for sale at “Free Duty” shops.The court heard that between August 2004 and May 2011, Lau and other persons implicated in the case caused Sky Connection to change its practice and placed purchase orders with the French winery via Jetfair Development Limited (Jetfair) and Master Good Trading Limited (Master Good). During the period, 56 purchase orders involving payments totalling over $26 million were placed.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Jetfair and Master Good had sourced the bottled red wine concerned from the French winery at over $14 million and resold them to Sky Connection at inflated prices, causing Sky Connection to make extra payments of over $12 million.ICAC enquiries also revealed that Master Good and Jetfair were funded by Lau and two others and that Lau and his daughter were the sole shareholder-cum-director of Master Good and Jetfair respectively. But Lau had never disclosed to Sky Connection his association with the two companies.Lau admitted that he and the two funders shared the profits generated in the scam proportionally and he received about $2 million in total.Sky Connection required its staff to declare any conflict of interest and prohibited them from engaging in any business which might have a conflict with the company.Au Tsz-kei, former merchandising and buying director of Sky Connection, was earlier charged for his alleged role in the scam. He pleaded not guilty to one count of conspiracy to defraud and his trial was scheduled for July 22.Sky Connection had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Flora Cheng, assisted by ICAC officer May Lam.The ICAC reminds staff of business organisations to avoid conflict of interest and make declarations in strict adherence to internal guidelines. Concealing any conflict of interest in relation to one’s official duties to benefit himself or his associates may contravene the criminal law, such as the Prevention of Bribery Ordinance if offering or accepting of bribes is involved. 16
May 2024Woman gets two months’ jail for bribing TD examiner with mooncake voucher for getting a pass in driving testA woman, charged by the ICAC, was today (May 16) sentenced to two months’ imprisonment at the Shatin Magistrates’ Courts for offering a bribe, a mooncake voucher worth over $400, to a driving examiner of the Transport Department (TD) in a bid to get a pass after making a mistake during the parking test of private car driving test.Li Zhengchun, 54, earlier pleaded guilty to one count of offering an advantage to a public servant, contrary to section 4(1)(a) of the Prevention of Bribery Ordinance.In sentencing, Acting Principal Magistrate Ms Amy Chan Wai-mun reprimanded the defendant for bribing the driving examiner, which affected the fairness of the driving test system and undermined the public interest, adding that the court had to mete out an exemplary deterrent sentence to serve as a warning to the general public. The acting principal magistrate took a starting point of three months’ imprisonment, and reduced the jail term by one-third, having considered the defendant’s guilty plea.The court heard that the defendant took a private car driving test at TD’s Driving Test Centre in Hong Kong School of Motoring (Sha Tin) on September 14, 2023 when Mid-Autumn Festival was approaching. A Driving Examiner II of the TD was randomly assigned to be her examiner.In the parking test, the defendant made a serious mistake by parking half of the vehicle outside the boundary of the designated parking space. Afterwards the defendant offered a mooncake voucher worth over $400 to the examiner twice in a bid to get a pass in the driving test.The examiner failed the defendant in the test for her serious mistake and made a corruption remark on the test records and reported the incident to the TD. Upon receipt of a corruption complaint referred by the TD on the same day, ICAC officers arrested the defendant on the spot at the Driving Test Centre. The TD had also rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Joanne Wong.The ICAC works closely with government departments, through education and publicity, to ensure that civil servants uphold probity and say no to corruption. Bribery is a serious offence. Members of the public are reminded not to offer bribes to civil servants in exchange for assistance or favour. 14
May 2024Ex-HKUST Adjunct Associate Professor wanted by ICAC for $4m procurement fraud arrested in PolandA former Adjunct Associate Professor of the Hong Kong University of Science and Technology (HKUST) wanted by the ICAC was arrested in Poland in late April. Earlier on, a warrant for the arrest of the former Adjunct Associate Professor for allegedly conspiring with two others to conceal his interest in two suppliers in relation to various procurements that involved payments totalling about $4 million was issued by a Magistrate.Yeung Lam-lung, 59, former Adjunct Associate Professor of the Department of Chemistry of HKUST, faces a total of 17 charges – three of conspiracy to defraud, contrary to Common Law; and 14 of fraud, contrary to Section 16A(1) of the Theft Ordinance.In late April, the ICAC was informed by the Interpol that Yeung Lam-lung was detained by the Poland authorities in an international airport of Poland. Upon the ICAC’s request, the Department of Justice (DoJ) made an application to Poland for the provisional arrest of Yeung Lam-lung pursuant to the United Nations Convention against Corruption (UNCAC). A formal request for the surrender of Yeung Lam-lung is under preparation and will be made. The UNCAC has been ratified by the People’s Republic of China and the Republic of Poland, and is also applicable to the Hong Kong Special Administrative Region.The ICAC is grateful to the DoJ and Poland authorities for their valuable assistance in securing the arrest of Yeung Lam-lung.The alleged offences took place between September 2011 and February 2019. During the period, Yeung Lam-lung conducted 17 tendering and procurement exercises for the HKUST and its subsidiary to purchase various laboratory equipment and testing services from Chun Fo (Asia) Pharmaceutical Co., Limited (CFPL) and PIT Limited (PITL) in which Yeung Lam-lung had direct or indirect financial interests.In accordance with the regulations of the HKUST, Yeung Lam-lung was required to declare his conflict of interest with any suppliers before engaging them. Likewise, suppliers were required to declare whether any HKUST staff have any interest in them.In late 2011, Yeung Siu-on became PITL’s sole director and shareholder. When CFPL was incorporated in mid-2012, Yeung Siu-on was its sole director and shareholder while Au Yeung Siu-fung took over the position in late 2012.The conspiracy charges allege that Yeung Lam-lung had conspired with Au Yeung Siu-fung or Yeung Siu-on to defraud the HKUST by concealing Yeung Lam-lung’s interest in CFPL and PITL while he had a duty to disclose any conflict of interest to the university, but instead, he induced it to engage CFPL and PITL in three of the 17 tendering and procurement exercises, and caused it to settle invoices of the two suppliers in full.The remaining charges allege that Yeung Lam-lung, either with Au Yeung Siu-fung or Yeung Siu-on, induced the HKUST or its subsidiary to engage CFPL or PITL in the other 14 tendering and procurement exercises by concealing his interest in the two suppliers.The 17 tendering and procurement exercises involved payments totalling about $4 million.The case arose from a corruption complaint filed with the ICAC. Upon completion of the investigation, legal advice was sought from the DoJ, which advised charging the trio. As Yeung Lam-lung had already left Hong Kong when Yeung Siu-on and Au Yeung Siu-fung were charged in September 2022, a warrant for the arrest of Yeung Lam-lung was issued by a Magistrate in October 2022 upon the application made by the ICAC. In August 2023, Yeung Lam-lung was placed on the Interpol Red Notice for his apprehension.In October 2023, Yeung Siu-on was sentenced to 28 months’ imprisonment at the District Court after pleading guilty to 11 counts of conspiracy to defraud and fraud. Au Yeung Siu-fung, who pleaded not guilty to three counts of conspiracy to defraud and fraud, had his case adjourned to December 19 for verdict.HKUST had rendered full assistance to the ICAC during its investigation into the case. 14
May 2024Ex-employee of car dealer charged by ICAC for fraud over sale of $450,000 vehicle partsA former employee of a car dealer was charged by the ICAC yesterday (May 13) for allegedly deceiving his employer into selling vehicle parts of two European brands worth totalling about $450,000 to three vehicle parts dealers.Patrick Chu Kwok-wah, 54, former senior parts officer of Kam Lung Motors Limited (KLM), faces three counts of fraud, contrary to section 16A(1) of the Theft Ordinance. The defendant was released on ICAC bail, pending his appearance at the Kwun Tong Magistrates’ Courts on Thursday (May 16) for plea.KLM is the authorised car dealer of Volkswagen and Audi in Hong Kong. Besides providing after-sale services, KLM also sells vehicle parts to garages and car owners at its depot in Yau Tong. The sales policy of KLM prohibits its employees from selling vehicle parts to any vehicle parts dealers in order to avoid the dealers to resell the parts for profits.At the material time, the defendant was posted to the Yau Tong depot. His duties included handling the sale of vehicle parts. It is alleged that between January and August 2021, he falsely represented to KLM that various sales reports and sales invoices involving three garages were genuine, and with intent to defraud, induced KLM to sell vehicle parts worth totalling about $450,000 to three vehicle parts dealers, which resulted in prejudice to KLM.The ICAC investigation stemmed from a corruption complaint concerning the sale of vehicle parts. Enquiries revealed that about 60 purchase orders purportedly issued by the three garages were false, namely the garages had never purchased the relevant vehicle parts from KLM but in fact the defendant sold the parts to the three vehicle parts dealers. Had KLM known about the actual situation, it would not have allowed the sales to take place.KLM has rendered full assistance to the ICAC during its investigation into the case. 13
May 2024Two women charged by ICAC for bribing bank employee over account openingThe ICAC charged two women last Friday (May 10) for allegedly bribing a bank employee with a wad of banknotes for opening a personal bank account.Yu Hui, 26, executive; and Wang Jinyu, 37, live-streaming technician, jointly face one count of offering advantage to an agent, contrary to section 9(2)(a) of the Prevention of Bribery Ordinance. The duo were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (May 14) for plea.On April 19, 2024, Yu and Wang came to Hong Kong and visited a branch of The Hongkong and Shanghai Banking Corporation Limited (HSBC) in Wan Chai for opening personal bank accounts. They wished to complete the relevant procedures on the same day.It is alleged that on the same day, the defendants offered a bribe consisting of an unspecified sum of money to an employee of HSBC for assisting Yu to open a bank account with the bank.The bank employee immediately rejected the bribes offered by the duo and reported the matter to his supervisors immediately. ICAC officers arrested the two defendants on the spot immediately after receiving a corruption complaint.Enquiries by the ICAC revealed that the defendants allegedly offered an envelope containing a wad of HK$100 and HK$500 banknotes to the bank employee.HSBC has rendered full assistance to the ICAC during its investigation into the case.The ICAC reminds the public not to bribe bank staff in exchange for its services. Should anyone comes across any suspicion of corruption, he or she should report to the ICAC immediately. ICAC 24-hour Report Corruption Hotline: 25 266 366.