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Aug 2024Man charged by ICAC gets five years’ jail for conspiracy to launder $125m crime proceedsA former personal assistant of a businessman, charged by the ICAC, was today (August 16) sentenced to five years’ imprisonment at the District Court for conspiring with the businessman to deal with crime proceeds totalling $125 million, being loans unlawfully obtained by the businessman from a listed company.Lam Chung-kan (also known as Lin Songgen), 50, was earlier found guilty of five counts of conspiracy to deal with property known or believed to represent proceeds of an indictable offence, contrary to section 25(1) of the Organized and Serious Crimes Ordinance and sections 159A and 159C of the Crimes Ordinance.In sentencing, Judge Mr Clement Lee Hing-nin noted that the case was premeditated and planned, involved cross-border crimes, and caused the aforesaid listed company to suffer a loss of over $80 million, all being aggravating factors.The ICAC investigation arose from a corruption complaint referred by the Securities and Futures Commission (SFC), followed by an operation jointly mounted by the ICAC and the SFC in 2021.The court heard that at the material time, the defendant was a personal assistant of a businessman Huang Ziqiang. In mid-2015, Huang arranged the defendant and others to hold substantial amount of shares of publicly listed Sunway International Holdings Limited (Sunway). Huang also arranged some individuals to take up senior executive posts of the listed company.In early 2016, Sunway started operating money lending business. Between July 2016 and September 2017, Huang had obtained five loans totalling $125 million from the listed company via four local and offshore companies controlled by the businessman through the defendant and others, in an attempt to circumvent regulatory requirements to pretend that those companies were independent borrowers.ICAC inquiries revealed that after the above-mentioned local and offshore companies received the loans from Sunway, the defendant would dispose of the loan proceeds according to the instructions given by Huang for the use of the latter or the companies controlled by him. Repayments of over $80 million out of the five loans were defaulted.ICAC appreciates the full assistance of the SFC and the Hong Kong Exchanges & Clearing Limited during the case investigation.The prosecution was today represented by Senior Public Prosecutor Audrey Parwani, assisted by ICAC officer Michael Yeung. 15
Aug 2024FEHD Foreman sentenced for breaching POBO by accepting unauthorised loan of $60,000 from subordinateA Foreman of the Food and Environmental Hygiene Department (FEHD), charged by the ICAC, was today (August 15) sentenced at the Eastern Magistrates’ Courts to four months’ imprisonment, suspended for three years, for accepting an unauthorised loan of $60,000 from a subordinate in breach of the anti-bribery law.Lai Tak-sum, 56, Foreman of the FEHD, pleaded guilty at the Eastern Magistrates’ Courts to one count of prescribed officer accepting an advantage on July 25, contrary to section 3 of the Prevention of Bribery Ordinance (POBO), and was remanded in the custody of the Correctional Services Department until today. Principal Magistrate Mr Don So Man-lung, having considered the defendant’s background report, today imposed a sentence of four months’ imprisonment, suspended for three years.The court heard that at the material time, the defendant was a Foreman of the FEHD posted to the Cleansing and Pest Control Section (Central/Western). Amongst his subordinates was a Workman II of the FEHD.The defendant admitted that on September 27, 2023, for reason of settling a payment with the court, he solicited a loan of $60,000 from the aforesaid subordinate, and accepted the loan without the general or special permission of the Chief Executive.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant had borrowed money from the said Workman II of FEHD but never sought any permission pursuant to the “Acceptance of Advantages (Chief Executive Permission) Notice”.The FEHD rendered full assistance to the ICAC during the investigation.The prosecution was today represented by Public Prosecutor Katie Fong, assisted by ICAC officer Tony Sze-To.The ICAC reminds civil servants to uphold integrity and financial prudence at all times. Civil servants should strictly adhere to the POBO as well as the provisions in the “Acceptance of Advantages (Chief Executive Permission) Notice” relating to the acceptance of advantages offered to them in their private capacity. 14
Aug 2024Then manager of printing company charged by ICAC for arranging mother to be company staff and deceive wages valued over $400KThe ICAC today (August 14) charged a then manager of a printing company and his mother, for arranging for his mother to be the company’s temporary staff and falsely representing her working hours to deceive wages totalling over $400,000 in 18 consecutive months.Fong Lung, 38, the then Service Delivery Management Manager of FUJIFILM Business Innovation Hong Kong Limited (FUJIFILM); and Cheung Lai-lin, 67, housewife, jointly face 18 counts of fraud, contrary to section 16(A) of the Theft Ordinance. They were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Friday (August 16) for plea.The ICAC investigation arose from a corruption complaint. Enquiries subsequently revealed the alleged fraudulent claims. At the material time, Fong was a Service Delivery Management Manager of the FUJIFILM and was authorised to engage temporary staff to tackle the manpower shortage, through a human resources agency engaged by FUJIFILM.In August 2021, Fong was alleged to have arranged Cheung to be employed by human resources agency at an hourly rate of $75. The agency then deployed Cheung to work in FUJIFILM.The 18 charges alleged that the two defendants, between August 2021 to February 2023, in Hong Kong, by deceit, namely by falsely representing to FUJIFILM and a human resources agency that Cheung’s working timesheets and related invoices, for 18 consecutive months since August 2021, were genuine, and with intent to defraud, induced the mentioned companies to release related wage payments, which resulted in benefit to the two defendants or prejudice to the two companies.ICAC investigation revealed that within the 18 months, Fong and Cheung falsely represented the total number of hours worked by Cheung were 5,700 hours and induced the aforesaid human resources agency to, in accordance with its policy, release wage payments of a total sum of over $400,000 to Cheung, and induced FUJIFILM released a total sum of around $500,000 as service fee to the aforesaid human resources agency. However, Cheung had never performed any duties in FUJIFILM at the material time.FUJIFILM rendered full assistance to the ICAC during its investigation into the case. 13
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 $5mThe 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. 12
Aug 2024Senior manager of contractor charged by ICAC admits accepting a $1m bribe over $260m construction projectsA senior manager of a main contractor, charged by the ICAC, accepted a bribe of $1 million from a subcontractor for favouring the latter over the Kai Tak Sports Park project and a private construction project. The defendant today (August 12) pleaded guilty at the District Court.Ringo Ng Wo-nang, 60, then senior manager of site services department of Hip Hing Construction Company Limited (Hip Hing), plead guilty to one count of agent accepting an advantage, contrary to Section 9(1)(b) of the Prevention of Bribery Ordinance.The defendant was granted bail by Deputy District Judge Ms Leung Ka-kie, and the case was adjourned to October 8 for the defendant’s mitigation.The court heard that, at the material time, Hip Hing was the main contractor of various public and private construction projects in Hong Kong. Lee Shing Masonry Engineering Limited (Lee Shing) obtained from Hip Hing a masonry contract worth over $58 million of a private construction project in 2020, and further bid for two masonry works contracts worth totalling about $200 million of the Kai Tak Sports Park project in 2021.The defendant was a senior manager of site services department of Hip Hing in charge of the site services support of the construction sites managed by Hip Hing. Due to operational need, he had access to the tender information of Hip Hing’s projects.ICAC enquiries revealed that since early 2019, a Lee Shing director cum shareholder (the director) had sought advice from the defendant on matters concerning the cooperation between Lee Shing and Hip Hing, including the tender progress of the masonry works under Hip Hing and how to submit quotations to Hip Hing. The defendant also tipped off the director about the tender progress of Hip Hing’s projects, and claimed that he had obtained favourable assistance to Lee Shing, such as releasing project payments promptly and raising the amount of the variation order of the project.In April 2020, during the tender process for the masonry works of the aforementioned private construction project, the defendant claimed to the director that he had communicated with one of the relevant officers in charge of the project. Lee Shing later obtained the masonry works contract for the project from Hip Hing. After that, the director also asked the defendant about the quotation matter on the variation order of the project.In addition, in May 2021, the defendant tipped off the director that Hip Hing was about to send out tender invitations for masonry works of the northern part of the Kai Tak Sports Park project. On July 27 of the same year, the director consulted the defendant on the price matters of the project, and the defendant agreed to discuss with him that afternoon. Later that day, the director handed over a recycle bag containing $1 million in cash to the defendant and was caught red-handed by ICAC officers.Three other defendants in this case earlier pleaded not guilty to their charges, and the trial commenced today at the District Court.The ICAC reminds practitioners to adhere strictly to the Prevention of Bribery Ordinance and not to use their official capacity for personal gains, thus destroying the fair and clean business environment. The Construction Industry Integrity Charter 2.0 launched by the ICAC, the Development Bureau and the Construction Industry Council requires the participating companies to put in place an Integrity Management System (IMS) (cpas.icac.hk/EN/Info/TP_Library?cate_id=10025). IMS prohibits staff from soliciting and accepting advantages from any organisations or individuals having business dealings with the companies.Hip Hing rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Eddie Sean and Vienna Fong, assisted by ICAC officers Wily Chan and Rex Tse.
Aug 2024Man charged by ICAC gets five years’ jail for conspiracy to launder $125m crime proceedsA former personal assistant of a businessman, charged by the ICAC, was today (August 16) sentenced to five years’ imprisonment at the District Court for conspiring with the businessman to deal with crime proceeds totalling $125 million, being loans unlawfully obtained by the businessman from a listed company.Lam Chung-kan (also known as Lin Songgen), 50, was earlier found guilty of five counts of conspiracy to deal with property known or believed to represent proceeds of an indictable offence, contrary to section 25(1) of the Organized and Serious Crimes Ordinance and sections 159A and 159C of the Crimes Ordinance.In sentencing, Judge Mr Clement Lee Hing-nin noted that the case was premeditated and planned, involved cross-border crimes, and caused the aforesaid listed company to suffer a loss of over $80 million, all being aggravating factors.The ICAC investigation arose from a corruption complaint referred by the Securities and Futures Commission (SFC), followed by an operation jointly mounted by the ICAC and the SFC in 2021.The court heard that at the material time, the defendant was a personal assistant of a businessman Huang Ziqiang. In mid-2015, Huang arranged the defendant and others to hold substantial amount of shares of publicly listed Sunway International Holdings Limited (Sunway). Huang also arranged some individuals to take up senior executive posts of the listed company.In early 2016, Sunway started operating money lending business. Between July 2016 and September 2017, Huang had obtained five loans totalling $125 million from the listed company via four local and offshore companies controlled by the businessman through the defendant and others, in an attempt to circumvent regulatory requirements to pretend that those companies were independent borrowers.ICAC inquiries revealed that after the above-mentioned local and offshore companies received the loans from Sunway, the defendant would dispose of the loan proceeds according to the instructions given by Huang for the use of the latter or the companies controlled by him. Repayments of over $80 million out of the five loans were defaulted.ICAC appreciates the full assistance of the SFC and the Hong Kong Exchanges & Clearing Limited during the case investigation.The prosecution was today represented by Senior Public Prosecutor Audrey Parwani, assisted by ICAC officer Michael Yeung. 15
Aug 2024FEHD Foreman sentenced for breaching POBO by accepting unauthorised loan of $60,000 from subordinateA Foreman of the Food and Environmental Hygiene Department (FEHD), charged by the ICAC, was today (August 15) sentenced at the Eastern Magistrates’ Courts to four months’ imprisonment, suspended for three years, for accepting an unauthorised loan of $60,000 from a subordinate in breach of the anti-bribery law.Lai Tak-sum, 56, Foreman of the FEHD, pleaded guilty at the Eastern Magistrates’ Courts to one count of prescribed officer accepting an advantage on July 25, contrary to section 3 of the Prevention of Bribery Ordinance (POBO), and was remanded in the custody of the Correctional Services Department until today. Principal Magistrate Mr Don So Man-lung, having considered the defendant’s background report, today imposed a sentence of four months’ imprisonment, suspended for three years.The court heard that at the material time, the defendant was a Foreman of the FEHD posted to the Cleansing and Pest Control Section (Central/Western). Amongst his subordinates was a Workman II of the FEHD.The defendant admitted that on September 27, 2023, for reason of settling a payment with the court, he solicited a loan of $60,000 from the aforesaid subordinate, and accepted the loan without the general or special permission of the Chief Executive.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant had borrowed money from the said Workman II of FEHD but never sought any permission pursuant to the “Acceptance of Advantages (Chief Executive Permission) Notice”.The FEHD rendered full assistance to the ICAC during the investigation.The prosecution was today represented by Public Prosecutor Katie Fong, assisted by ICAC officer Tony Sze-To.The ICAC reminds civil servants to uphold integrity and financial prudence at all times. Civil servants should strictly adhere to the POBO as well as the provisions in the “Acceptance of Advantages (Chief Executive Permission) Notice” relating to the acceptance of advantages offered to them in their private capacity. 14
Aug 2024Then manager of printing company charged by ICAC for arranging mother to be company staff and deceive wages valued over $400KThe ICAC today (August 14) charged a then manager of a printing company and his mother, for arranging for his mother to be the company’s temporary staff and falsely representing her working hours to deceive wages totalling over $400,000 in 18 consecutive months.Fong Lung, 38, the then Service Delivery Management Manager of FUJIFILM Business Innovation Hong Kong Limited (FUJIFILM); and Cheung Lai-lin, 67, housewife, jointly face 18 counts of fraud, contrary to section 16(A) of the Theft Ordinance. They were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Friday (August 16) for plea.The ICAC investigation arose from a corruption complaint. Enquiries subsequently revealed the alleged fraudulent claims. At the material time, Fong was a Service Delivery Management Manager of the FUJIFILM and was authorised to engage temporary staff to tackle the manpower shortage, through a human resources agency engaged by FUJIFILM.In August 2021, Fong was alleged to have arranged Cheung to be employed by human resources agency at an hourly rate of $75. The agency then deployed Cheung to work in FUJIFILM.The 18 charges alleged that the two defendants, between August 2021 to February 2023, in Hong Kong, by deceit, namely by falsely representing to FUJIFILM and a human resources agency that Cheung’s working timesheets and related invoices, for 18 consecutive months since August 2021, were genuine, and with intent to defraud, induced the mentioned companies to release related wage payments, which resulted in benefit to the two defendants or prejudice to the two companies.ICAC investigation revealed that within the 18 months, Fong and Cheung falsely represented the total number of hours worked by Cheung were 5,700 hours and induced the aforesaid human resources agency to, in accordance with its policy, release wage payments of a total sum of over $400,000 to Cheung, and induced FUJIFILM released a total sum of around $500,000 as service fee to the aforesaid human resources agency. However, Cheung had never performed any duties in FUJIFILM at the material time.FUJIFILM rendered full assistance to the ICAC during its investigation into the case. 13
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 $5mThe 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. 12
Aug 2024Senior manager of contractor charged by ICAC admits accepting a $1m bribe over $260m construction projectsA senior manager of a main contractor, charged by the ICAC, accepted a bribe of $1 million from a subcontractor for favouring the latter over the Kai Tak Sports Park project and a private construction project. The defendant today (August 12) pleaded guilty at the District Court.Ringo Ng Wo-nang, 60, then senior manager of site services department of Hip Hing Construction Company Limited (Hip Hing), plead guilty to one count of agent accepting an advantage, contrary to Section 9(1)(b) of the Prevention of Bribery Ordinance.The defendant was granted bail by Deputy District Judge Ms Leung Ka-kie, and the case was adjourned to October 8 for the defendant’s mitigation.The court heard that, at the material time, Hip Hing was the main contractor of various public and private construction projects in Hong Kong. Lee Shing Masonry Engineering Limited (Lee Shing) obtained from Hip Hing a masonry contract worth over $58 million of a private construction project in 2020, and further bid for two masonry works contracts worth totalling about $200 million of the Kai Tak Sports Park project in 2021.The defendant was a senior manager of site services department of Hip Hing in charge of the site services support of the construction sites managed by Hip Hing. Due to operational need, he had access to the tender information of Hip Hing’s projects.ICAC enquiries revealed that since early 2019, a Lee Shing director cum shareholder (the director) had sought advice from the defendant on matters concerning the cooperation between Lee Shing and Hip Hing, including the tender progress of the masonry works under Hip Hing and how to submit quotations to Hip Hing. The defendant also tipped off the director about the tender progress of Hip Hing’s projects, and claimed that he had obtained favourable assistance to Lee Shing, such as releasing project payments promptly and raising the amount of the variation order of the project.In April 2020, during the tender process for the masonry works of the aforementioned private construction project, the defendant claimed to the director that he had communicated with one of the relevant officers in charge of the project. Lee Shing later obtained the masonry works contract for the project from Hip Hing. After that, the director also asked the defendant about the quotation matter on the variation order of the project.In addition, in May 2021, the defendant tipped off the director that Hip Hing was about to send out tender invitations for masonry works of the northern part of the Kai Tak Sports Park project. On July 27 of the same year, the director consulted the defendant on the price matters of the project, and the defendant agreed to discuss with him that afternoon. Later that day, the director handed over a recycle bag containing $1 million in cash to the defendant and was caught red-handed by ICAC officers.Three other defendants in this case earlier pleaded not guilty to their charges, and the trial commenced today at the District Court.The ICAC reminds practitioners to adhere strictly to the Prevention of Bribery Ordinance and not to use their official capacity for personal gains, thus destroying the fair and clean business environment. The Construction Industry Integrity Charter 2.0 launched by the ICAC, the Development Bureau and the Construction Industry Council requires the participating companies to put in place an Integrity Management System (IMS) (cpas.icac.hk/EN/Info/TP_Library?cate_id=10025). IMS prohibits staff from soliciting and accepting advantages from any organisations or individuals having business dealings with the companies.Hip Hing rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Eddie Sean and Vienna Fong, assisted by ICAC officers Wily Chan and Rex Tse.