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Aug 2023Joint press release: SFC and ICAC conduct joint operation against suspected market manipulation syndicate and Restriction Notices issued by the SFC to six brokers to freeze client accountsThe Securities and Futures Commission (SFC) and the Independent Commission Against Corruption (ICAC) conducted a joint operation today involving two companies listed on The Stock Exchange of Hong Kong Limited on suspicion that their shares were being manipulated from December 2022 to August 2023 (Note 1).The SFC and the ICAC searched 14 premises suspected of links to the market manipulation case. In the joint operation, the ICAC also arrested one core member of the suspected syndicate under the Prevention of Bribery Ordinance.The investigation revealed that an extremely well-organised syndicate was suspected of orchestrating a scheme to ramp up the share prices of the two aforesaid listed companies, thus breaching relevant provisions of the Securities and Futures Ordinance (SFO). The SFC suspected that the ultimate purpose of the scheme was to inflate the market capitalisation of the two listed companies to facilitate their selection as constituents of major market indices and for the syndicate to make a profit by selling their shares of the listed companies to index tracking funds at inflated prices.To facilitate the operation of the scheme, the arrested core syndicate member was suspected to have bribed two senior executives of one of the two listed companies into disseminating false and misleading information about the company.In connection with the joint operation, the SFC has issued restriction notices to six brokers, prohibiting them from dealing with or processing assets held in eight trading accounts which are related to suspected market manipulation of the shares of one of the two listed companies (Note 2).The six brokerages are: Fulbright Securities Limited; Futu Securities International (Hong Kong) Limited; Grand China Securities Limited; Lee Go Securities Limited; Valuable Capital Limited; and Zinvest Global Limited.The SFC is not investigating the six brokers, and all of them have cooperated with the SFC’s investigation. The restriction notices do not affect their operations or their other clients.The SFC considers that the issue of the restriction notices is desirable in the interest of the investing public or in the public interest.The restriction notices prohibit the six brokers, without the SFC’s prior written consent, from disposing of or dealing with, or assisting, counselling or procuring another person to dispose of or deal with, any assets in any way in the trading accounts up to a certain amount, including: (i) entering into transactions in respect of any securities; (ii) processing any withdrawals or transfers of securities and/or cash on the instructions of any authorised person of the accounts or by any person acting on their behalf; (iii) disposing of or dealing with any securities and/or cash on the instructions of any authorised person of the accounts or by any person acting on their behalf; and/or (iv) assisting another person to dispose of any relevant property or deal with any relevant property in a specified manner. The brokers are also required to notify the SFC if they receive any of these instructions.No further comment will be made as investigations are ongoing.Notes:1. The joint operation was conducted under the arrangement of the Memorandum of Understanding signed between the SFC and the ICAC. Please see the websites of the SFC and the ICAC.2. The SFC issued the restriction notices pursuant to sections 204 and 205 of the SFO. 22
Aug 2023Ex-insurance agent jailed for $750,000 commission fraud revealed in ICAC graft probeA former insurance agent, charged by the ICAC, was today (August 22) sentenced to 30 weeks’ imprisonment at the Kowloon City Magistrates’ Courts for defrauding an insurer of commissions totalling about $750,000 by making false representations in five insurance policy applications about the occupations and monthly incomes of the applicants or the relevant handling agent. The illegal activities were revealed in the course of a corruption investigation.Chow Tsz-sin, former known as Zhou Chuqian, 30, former insurance agent of Sun Life Hong Kong Limited (Sun Life), was earlier found guilty of four counts of agent using document with intent to deceive her principal, contrary to section 9(3) of the Prevention of Bribery Ordinance, and one count of fraud, contrary to section 16A of the Theft Ordinance.In sentencing, Magistrate Mr Kestrel Lam Tsz-hong remarked that the defendant’s behaviour obviously constituted a breach of trust and it was the only option for the court to mete out a custodial sentence to the defendant.Upon the defendant’s application, the magistrate granted her bail pending her appeal.The court heard that Sun Life provided different insurance products to its clients. When processing an application for taking out an insurance policy, Sun Life would consider the client’s occupation and income, etc. At the material time, the defendant was an insurance agent of Sun Life. When an insurance product was sold, the defendant and her up-line manager would be entitled to a commission and an overriding commission respectively.The court heard that between August 2016 and July 2018, the defendant, with intent to mislead Sun Life, made false representations in four insurance policy applications about the occupations and monthly incomes of the applicants. She also falsely represented that she was the handling agent of another insurance policy.Believing the information stated on the application forms of the five insurance policies was genuine, Sun Life approved those insurance policy applications and paid commissions totalling about $750,000 to the defendant and her up-line manager.The ICAC investigation arose from a corruption complaint. Investigation revealed that the defendant had paid part of the premiums for the policies. The insurance policies concerned eventually lapsed after subsequent premiums were not paid.Sun Life had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Acting Senior Public Prosecutor Douglas Lau, assisted by ICAC officers William Leung and Gary Lam. 18
Aug 2023Three former bank staff charged by ICAC jailed for bribery for divulging customer dataThree former employees of a bank, charged by the ICAC, were today (August 18) sentenced to jail terms ranging from 10 to 45 months for bribery and dishonest access to computer for conspiring together to accept bribes of over $200,000 so as to divulge confidential information of over 680 customers in the bank computer system to others for touting personal loan business.Yip Fai, 43, former treasures relationship manager of DBS Bank (Hong Kong) Limited (DBS Bank), was sentenced to 45 months’ imprisonment. Wong Hiu-yan, 38, and Shek Yin-yui, 35, both former direct sales representatives of DBS Bank; were jailed for 10 months and 13 months respectively.The sentencing of co-defendant Charlie Cha Cheuk-wang, formerly known as Cha Yu and Cha Lik, 34, former direct sales manager of DBS Bank, was adjourned to September 11, pending his community service order report.In sentencing, Deputy District Judge Mr Daniel Tang Siu-hung reprimanded the four defendants for committing the offences premeditatedly in an organised manner. The offences constituted a breach of trust, undermined the reputation of the bank and eventually affected the public’s confidence in the banking system.Yip was earlier found guilty of 37 charges – seven of conspiracy for agent to accept advantages, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance; and 30 of access computer with criminal or dishonest intent, contrary to section 161(1)(c) of the Crimes Ordinance. Wong, Shek and Cha were all convicted after trial for five of the bribery charges.The offences took place between November 2015 and December 2016. At the material time, Yip was a treasures relationship manager of DBS Bank posted to the North Point Branch. He was responsible for handling customers who held assets over $1 million in the bank. Cha was a direct sales manager of DBS Bank’s unsecured lending department. A team of direct sales representatives was under his supervision to promote personal loan business.DBS Bank maintained a computer system storing customers’ confidential information. Yip was granted access to the system while staff members promoting personal loan business did not have access right to it.The court heard that Yip individually made an agreement with five staff members promoting personal loan business, including the three co-defendants, for Yip to provide confidential customer information obtained from the bank computer system for four of them, including Wong and Shek, to tout personal loan business. Should the four persons successfully procure any loan for a customer, they were required to pay a certain percentage of the net loan amount to Yip as rewards.Yip also instructed Shek to divulge the information obtained by him from the bank computer system to two other persons for touting personal loan business. The duo were a financial intermediary and an employee of another bank. They were required to pay a certain percentage of the net loan amount to Shek and Yip for successfully procuring any loan.ICAC enquiries revealed that at the material time, Yip obtained confidential information of over 680 customers from the bank computer system and divulged the information to others for touting personal loan business. As a result, Yip and Shek accepted illegal commissions totalling over $200,000.DBS Bank did not allow its staff members to accept an advantage in relation to its affairs or business, or to communicate its confidential customer information to any unauthorised party for the purpose of promoting loans.DBS Bank had rendered full assistance to the ICAC during its investigation into the two cases.The prosecution was today represented by Acting Senior Public Prosecutor Douglas Lau and prosecuting counsel Scottie Yan, assisted by ICAC officer Emily Cheung.An ICAC spokesperson noted that the ICAC attaches great importance to the integrity standard of the banking industry. Bank staff are reminded to uphold a high standard of integrity and abide by the laws. To promote probity culture in the banking sector, an Ethics Promotion Programme for the Banking Industry was launched to help managerial and other ranks of bank staff understand common corruption loopholes. In addition, the ICAC had earlier organised a two-day Professional Anti-Corruption Training in Banking Management and launched the “Corruption Prevention Guide for Banks” to assist banks in managing corruption risks in core operations. 10
Aug 2023Four charged by ICAC for concealing conflict of interest over telecom company’s fibre installation service ordersAn assistant manager of a telecommunications company and three others were charged by the ICAC yesterday (August 9) for allegedly concealing the assistant manager’s interest in a contractor to secure fibre installation service orders of the telecommunications company worth totalling $180,000.Chan Chun-kin, 43, assistant manager of Technical & Service Support Department of i-CABLE Communications Limited (i-CABLE); his girlfriend Fok Yuen-kei, 44; his personal friend Lo Lok-hei, 43, sole director cum shareholder of Lokkin Engineering Limited (Lokkin); and Chan Hau-leung, 35, technician of a contractor of i-CABLE, jointly face three counts of obtaining pecuniary advantage by deception, contrary to section 18(1) of the Theft Ordinance.The defendants were released on ICAC bail, pending their appearance at the West Kowloon Magistrates’ Courts tomorrow (August 11) for plea.At the material time, Chan Chun-kin was an assistant manager of Technical & Service Support Department of i-CABLE. He was responsible for monitoring and evaluating the service quality of contractors engaged by the department to conduct networking installation and maintenance works at customers’ premises and to make recommendation on the engagement of contractors.The policies of i-CABLE stipulated that all employees should avoid actual or potential conflict of interest and employees should declare their conflict of interest in writing to the management.The charges allege that between May and August 2022, the four defendants dishonestly obtained for Lokkin opportunities to earn remuneration in respect of three service orders regarding fibre installation at three residential estates by concealing from i-CABLE that Chan Chun-kin was the beneficial owner and operator of Lokkin.The ICAC investigation arose from a corruption investigation. Enquiries revealed that upon Chan Chun-kin’s recommendation, Lokkin was engaged by i-CABLE as a contractor for fibre installation works.ICAC enquiries revealed that Chan Chun-kin allegedly instructed his friend Lo to set up Lokkin in 2021 with a view to taking up networking installation and maintenance works of i-CABLE, and open bank accounts for Lokkin. Meanwhile, Chan Chun-kin’s girlfriend Fok assisted in arranging documents for Lokkin’s incorporation and opening of bank accounts.On the supplier registration form prepared by Chan Chun-kin and signed by Lo, it was declared that Lo was the sole director-cum-shareholder of Lokkin without disclosing Chan Chun-kin’s beneficial interest in the company.It is alleged that on Chan Chun-kin’s instruction, a technician of another contractor of i-CABLE Chan Hau-leung submitted to i-CABLE three quotations in the name of Lokkin. Lokkin was subsequently awarded the abovementioned three service orders of fibre installation worth totalling $180,000.i-CABLE has rendered full assistance to the ICAC during its investigation into the case.The ICAC encourages public and private organisations to establish clear guidelines and systems of declaration on conflict of interest. Staff should 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. 08
Aug 2023Ex-manager of interior design firm charged by ICAC jailed for 48 months for $3.5m fraud and theftA former manager of an interior design and renovation company, charged by the ICAC, was today (August 8) sentenced to 48 months’ imprisonment at the District Court for fraud and theft involving a total of over $3.5 million. The offences were revealed in the course of a corruption investigation by the Commission.Amy Mak Man-yee, 45, former administration and account manager of Hei Design Limited (Hei Design), earlier pleaded guilty to a total of 18 charges – eight of fraud and 10 of theft, respectively contrary to section 16A and section 9 of the Theft Ordinance.In sentencing, Judge Ms Kathie Cheung Kit-yee reprimanded the defendant for her breach of trust, noting that the offences had lasted a long period and involved a considerable sum of money, warranting an immediate custodial sentence. The Judge took a starting point of 64 months’ imprisonment and reduced the jail term by one-fourth in view of the defendant’s guilty plea.Hei Design was an interior design and renovation company. At the material time, the defendant was responsible for the company’s daily accounting work, including preparing cheques for her employer to sign so as to arrange payments to its suppliers and contractors.The court heard that between April 2017 and April 2019, the defendant had falsely represented to her employer on eight occasions that 20 cheques prepared by her were payable to a furniture supplier and two decoration contractors of Hei Design.As a result, the defendant’s employer signed on the 20 cheques involving sums totalling about $1.8 million. ICAC investigation revealed that the cheques were subsequently deposited into the defendant’s own bank accounts or used to pay decoration and furniture purchase fees for her two companies.In addition, during the above period, the defendant had also stolen 10 sums of money totalling over $1.7 million from Hei Design by depositing 10 other cheques into her bank account. ICAC enquiries revealed that the defendant’s employer was the sole signatory of all bank accounts of the company, but the 10 cheques were not signed by him.Hei Design had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Andy Yip.
Aug 2023Joint press release: SFC and ICAC conduct joint operation against suspected market manipulation syndicate and Restriction Notices issued by the SFC to six brokers to freeze client accountsThe Securities and Futures Commission (SFC) and the Independent Commission Against Corruption (ICAC) conducted a joint operation today involving two companies listed on The Stock Exchange of Hong Kong Limited on suspicion that their shares were being manipulated from December 2022 to August 2023 (Note 1).The SFC and the ICAC searched 14 premises suspected of links to the market manipulation case. In the joint operation, the ICAC also arrested one core member of the suspected syndicate under the Prevention of Bribery Ordinance.The investigation revealed that an extremely well-organised syndicate was suspected of orchestrating a scheme to ramp up the share prices of the two aforesaid listed companies, thus breaching relevant provisions of the Securities and Futures Ordinance (SFO). The SFC suspected that the ultimate purpose of the scheme was to inflate the market capitalisation of the two listed companies to facilitate their selection as constituents of major market indices and for the syndicate to make a profit by selling their shares of the listed companies to index tracking funds at inflated prices.To facilitate the operation of the scheme, the arrested core syndicate member was suspected to have bribed two senior executives of one of the two listed companies into disseminating false and misleading information about the company.In connection with the joint operation, the SFC has issued restriction notices to six brokers, prohibiting them from dealing with or processing assets held in eight trading accounts which are related to suspected market manipulation of the shares of one of the two listed companies (Note 2).The six brokerages are: Fulbright Securities Limited; Futu Securities International (Hong Kong) Limited; Grand China Securities Limited; Lee Go Securities Limited; Valuable Capital Limited; and Zinvest Global Limited.The SFC is not investigating the six brokers, and all of them have cooperated with the SFC’s investigation. The restriction notices do not affect their operations or their other clients.The SFC considers that the issue of the restriction notices is desirable in the interest of the investing public or in the public interest.The restriction notices prohibit the six brokers, without the SFC’s prior written consent, from disposing of or dealing with, or assisting, counselling or procuring another person to dispose of or deal with, any assets in any way in the trading accounts up to a certain amount, including: (i) entering into transactions in respect of any securities; (ii) processing any withdrawals or transfers of securities and/or cash on the instructions of any authorised person of the accounts or by any person acting on their behalf; (iii) disposing of or dealing with any securities and/or cash on the instructions of any authorised person of the accounts or by any person acting on their behalf; and/or (iv) assisting another person to dispose of any relevant property or deal with any relevant property in a specified manner. The brokers are also required to notify the SFC if they receive any of these instructions.No further comment will be made as investigations are ongoing.Notes:1. The joint operation was conducted under the arrangement of the Memorandum of Understanding signed between the SFC and the ICAC. Please see the websites of the SFC and the ICAC.2. The SFC issued the restriction notices pursuant to sections 204 and 205 of the SFO. 22
Aug 2023Ex-insurance agent jailed for $750,000 commission fraud revealed in ICAC graft probeA former insurance agent, charged by the ICAC, was today (August 22) sentenced to 30 weeks’ imprisonment at the Kowloon City Magistrates’ Courts for defrauding an insurer of commissions totalling about $750,000 by making false representations in five insurance policy applications about the occupations and monthly incomes of the applicants or the relevant handling agent. The illegal activities were revealed in the course of a corruption investigation.Chow Tsz-sin, former known as Zhou Chuqian, 30, former insurance agent of Sun Life Hong Kong Limited (Sun Life), was earlier found guilty of four counts of agent using document with intent to deceive her principal, contrary to section 9(3) of the Prevention of Bribery Ordinance, and one count of fraud, contrary to section 16A of the Theft Ordinance.In sentencing, Magistrate Mr Kestrel Lam Tsz-hong remarked that the defendant’s behaviour obviously constituted a breach of trust and it was the only option for the court to mete out a custodial sentence to the defendant.Upon the defendant’s application, the magistrate granted her bail pending her appeal.The court heard that Sun Life provided different insurance products to its clients. When processing an application for taking out an insurance policy, Sun Life would consider the client’s occupation and income, etc. At the material time, the defendant was an insurance agent of Sun Life. When an insurance product was sold, the defendant and her up-line manager would be entitled to a commission and an overriding commission respectively.The court heard that between August 2016 and July 2018, the defendant, with intent to mislead Sun Life, made false representations in four insurance policy applications about the occupations and monthly incomes of the applicants. She also falsely represented that she was the handling agent of another insurance policy.Believing the information stated on the application forms of the five insurance policies was genuine, Sun Life approved those insurance policy applications and paid commissions totalling about $750,000 to the defendant and her up-line manager.The ICAC investigation arose from a corruption complaint. Investigation revealed that the defendant had paid part of the premiums for the policies. The insurance policies concerned eventually lapsed after subsequent premiums were not paid.Sun Life had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Acting Senior Public Prosecutor Douglas Lau, assisted by ICAC officers William Leung and Gary Lam. 18
Aug 2023Three former bank staff charged by ICAC jailed for bribery for divulging customer dataThree former employees of a bank, charged by the ICAC, were today (August 18) sentenced to jail terms ranging from 10 to 45 months for bribery and dishonest access to computer for conspiring together to accept bribes of over $200,000 so as to divulge confidential information of over 680 customers in the bank computer system to others for touting personal loan business.Yip Fai, 43, former treasures relationship manager of DBS Bank (Hong Kong) Limited (DBS Bank), was sentenced to 45 months’ imprisonment. Wong Hiu-yan, 38, and Shek Yin-yui, 35, both former direct sales representatives of DBS Bank; were jailed for 10 months and 13 months respectively.The sentencing of co-defendant Charlie Cha Cheuk-wang, formerly known as Cha Yu and Cha Lik, 34, former direct sales manager of DBS Bank, was adjourned to September 11, pending his community service order report.In sentencing, Deputy District Judge Mr Daniel Tang Siu-hung reprimanded the four defendants for committing the offences premeditatedly in an organised manner. The offences constituted a breach of trust, undermined the reputation of the bank and eventually affected the public’s confidence in the banking system.Yip was earlier found guilty of 37 charges – seven of conspiracy for agent to accept advantages, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance; and 30 of access computer with criminal or dishonest intent, contrary to section 161(1)(c) of the Crimes Ordinance. Wong, Shek and Cha were all convicted after trial for five of the bribery charges.The offences took place between November 2015 and December 2016. At the material time, Yip was a treasures relationship manager of DBS Bank posted to the North Point Branch. He was responsible for handling customers who held assets over $1 million in the bank. Cha was a direct sales manager of DBS Bank’s unsecured lending department. A team of direct sales representatives was under his supervision to promote personal loan business.DBS Bank maintained a computer system storing customers’ confidential information. Yip was granted access to the system while staff members promoting personal loan business did not have access right to it.The court heard that Yip individually made an agreement with five staff members promoting personal loan business, including the three co-defendants, for Yip to provide confidential customer information obtained from the bank computer system for four of them, including Wong and Shek, to tout personal loan business. Should the four persons successfully procure any loan for a customer, they were required to pay a certain percentage of the net loan amount to Yip as rewards.Yip also instructed Shek to divulge the information obtained by him from the bank computer system to two other persons for touting personal loan business. The duo were a financial intermediary and an employee of another bank. They were required to pay a certain percentage of the net loan amount to Shek and Yip for successfully procuring any loan.ICAC enquiries revealed that at the material time, Yip obtained confidential information of over 680 customers from the bank computer system and divulged the information to others for touting personal loan business. As a result, Yip and Shek accepted illegal commissions totalling over $200,000.DBS Bank did not allow its staff members to accept an advantage in relation to its affairs or business, or to communicate its confidential customer information to any unauthorised party for the purpose of promoting loans.DBS Bank had rendered full assistance to the ICAC during its investigation into the two cases.The prosecution was today represented by Acting Senior Public Prosecutor Douglas Lau and prosecuting counsel Scottie Yan, assisted by ICAC officer Emily Cheung.An ICAC spokesperson noted that the ICAC attaches great importance to the integrity standard of the banking industry. Bank staff are reminded to uphold a high standard of integrity and abide by the laws. To promote probity culture in the banking sector, an Ethics Promotion Programme for the Banking Industry was launched to help managerial and other ranks of bank staff understand common corruption loopholes. In addition, the ICAC had earlier organised a two-day Professional Anti-Corruption Training in Banking Management and launched the “Corruption Prevention Guide for Banks” to assist banks in managing corruption risks in core operations. 10
Aug 2023Four charged by ICAC for concealing conflict of interest over telecom company’s fibre installation service ordersAn assistant manager of a telecommunications company and three others were charged by the ICAC yesterday (August 9) for allegedly concealing the assistant manager’s interest in a contractor to secure fibre installation service orders of the telecommunications company worth totalling $180,000.Chan Chun-kin, 43, assistant manager of Technical & Service Support Department of i-CABLE Communications Limited (i-CABLE); his girlfriend Fok Yuen-kei, 44; his personal friend Lo Lok-hei, 43, sole director cum shareholder of Lokkin Engineering Limited (Lokkin); and Chan Hau-leung, 35, technician of a contractor of i-CABLE, jointly face three counts of obtaining pecuniary advantage by deception, contrary to section 18(1) of the Theft Ordinance.The defendants were released on ICAC bail, pending their appearance at the West Kowloon Magistrates’ Courts tomorrow (August 11) for plea.At the material time, Chan Chun-kin was an assistant manager of Technical & Service Support Department of i-CABLE. He was responsible for monitoring and evaluating the service quality of contractors engaged by the department to conduct networking installation and maintenance works at customers’ premises and to make recommendation on the engagement of contractors.The policies of i-CABLE stipulated that all employees should avoid actual or potential conflict of interest and employees should declare their conflict of interest in writing to the management.The charges allege that between May and August 2022, the four defendants dishonestly obtained for Lokkin opportunities to earn remuneration in respect of three service orders regarding fibre installation at three residential estates by concealing from i-CABLE that Chan Chun-kin was the beneficial owner and operator of Lokkin.The ICAC investigation arose from a corruption investigation. Enquiries revealed that upon Chan Chun-kin’s recommendation, Lokkin was engaged by i-CABLE as a contractor for fibre installation works.ICAC enquiries revealed that Chan Chun-kin allegedly instructed his friend Lo to set up Lokkin in 2021 with a view to taking up networking installation and maintenance works of i-CABLE, and open bank accounts for Lokkin. Meanwhile, Chan Chun-kin’s girlfriend Fok assisted in arranging documents for Lokkin’s incorporation and opening of bank accounts.On the supplier registration form prepared by Chan Chun-kin and signed by Lo, it was declared that Lo was the sole director-cum-shareholder of Lokkin without disclosing Chan Chun-kin’s beneficial interest in the company.It is alleged that on Chan Chun-kin’s instruction, a technician of another contractor of i-CABLE Chan Hau-leung submitted to i-CABLE three quotations in the name of Lokkin. Lokkin was subsequently awarded the abovementioned three service orders of fibre installation worth totalling $180,000.i-CABLE has rendered full assistance to the ICAC during its investigation into the case.The ICAC encourages public and private organisations to establish clear guidelines and systems of declaration on conflict of interest. Staff should 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. 08
Aug 2023Ex-manager of interior design firm charged by ICAC jailed for 48 months for $3.5m fraud and theftA former manager of an interior design and renovation company, charged by the ICAC, was today (August 8) sentenced to 48 months’ imprisonment at the District Court for fraud and theft involving a total of over $3.5 million. The offences were revealed in the course of a corruption investigation by the Commission.Amy Mak Man-yee, 45, former administration and account manager of Hei Design Limited (Hei Design), earlier pleaded guilty to a total of 18 charges – eight of fraud and 10 of theft, respectively contrary to section 16A and section 9 of the Theft Ordinance.In sentencing, Judge Ms Kathie Cheung Kit-yee reprimanded the defendant for her breach of trust, noting that the offences had lasted a long period and involved a considerable sum of money, warranting an immediate custodial sentence. The Judge took a starting point of 64 months’ imprisonment and reduced the jail term by one-fourth in view of the defendant’s guilty plea.Hei Design was an interior design and renovation company. At the material time, the defendant was responsible for the company’s daily accounting work, including preparing cheques for her employer to sign so as to arrange payments to its suppliers and contractors.The court heard that between April 2017 and April 2019, the defendant had falsely represented to her employer on eight occasions that 20 cheques prepared by her were payable to a furniture supplier and two decoration contractors of Hei Design.As a result, the defendant’s employer signed on the 20 cheques involving sums totalling about $1.8 million. ICAC investigation revealed that the cheques were subsequently deposited into the defendant’s own bank accounts or used to pay decoration and furniture purchase fees for her two companies.In addition, during the above period, the defendant had also stolen 10 sums of money totalling over $1.7 million from Hei Design by depositing 10 other cheques into her bank account. ICAC enquiries revealed that the defendant’s employer was the sole signatory of all bank accounts of the company, but the 10 cheques were not signed by him.Hei Design had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Andy Yip.