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Oct 2023ICAC corruption probe reveals fraudulent claims involving insurance intermediaryThe ICAC today (October 27) charged an insurance intermediary after a corruption investigation revealed that he had allegedly conspired together with two policyholders to deceive an insurer into paying accident insurance compensation to them by making false representations about their injuries.Lalwani Jay Jerome, 34, then referrer engaged by Asia One Asset Management Limited (Asia One), faces eight counts of conspiracy to defraud, contrary to the Common Law.The defendant was released on ICAC bail, pending his appearance in the Eastern Magistrates’ Courts next Wednesday (November 1) for plea.At the material time, insurance broker Asia One was entrusted by AIA International Limited (AIA) to sell its insurance products to customers. When the case took place between late 2017 and June 2018, two policyholders respectively took out an AIA life insurance policy with an accident rider through the defendant.The insurance policies covered accident medical expenses reimbursement and accident indemnity. The policyholders had to submit an accident insurance claim to AIA directly or via Asia One, supported by documentary proof, including receipts of medical consultations or treatments and sick leave certificates issued by doctors or physiotherapists.It is alleged that the defendant had conspired with the two policyholders to defraud AIA by dishonestly falsely representing that the latter had respectively injured his/her back, knees or ankle and that the supporting documents issued by two doctors and two physiotherapy clinics were genuine, thereby inducing or causing AIA to pay insurance compensation totalling at least over $120,000 to them.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the two policyholders did not suffer from the aforesaid injuries, nor did they receive any treatment or take the sick leave concerned.The two policyholders concerned, Tam Kai-chun, 36 and Lam In-kwan, 32, were also charged by the ICAC for their roles in separate cases. The duo had earlier pleaded guilty and their cases were both adjourned to February 2, 2024 for mention.AIA has rendered full assistance to the ICAC during its investigation into the case.The ICAC will continue to collaborate with the industry in providing integrity training to insurance intermediaries. The ICAC has recently organised a Professional Anti-Corruption Training for Management in Insurance Sector for 28 insurance companies in order to enhance integrity management in the industry. For more information on the ICAC’s preventive and educational services for the industry, please visit the Ethics Promotion Website for the Insurance Industry produced by the Hong Kong Business Ethics Development Centre, and the Corruption Prevention Department’s Corruption Prevention Advisory Service Web Portal. 26
Oct 2023Two former team leaders of park construction project charged by ICAC jailed for bribery over worker employmentTwo then team leaders of a sub-contractor of a park construction project, charged by the ICAC, were today (October 26) sentenced at the Kowloon City Magistrates’ Courts to jail terms of five months and six months respectively for accepting bribes totalling over $64,000 from four workers for securing the latter’s employment with the sub-contractor.The defendants were Kwong Chi-kit, 39; and Chan Wai-kwok, 35, both former team leaders of HK Huangshangyou Steel Industrial Limited (HSY). Kwong was sentenced to five months’ imprisonment, while Chan was jailed for six months. The duo were ordered by Magistrate Mr Peter Yu Chun-cheung to repay the bribes concerned as restitution to their then employer.Kwong and Chan earlier pleaded guilty to two joint charges of conspiracy for agents to accept an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance. Chan alone further pleaded guilty to two other similar offences.In sentencing, the Magistrate remarked that the defendants had repeatedly accepted from the workers bribes payments which constituted a rather substantial proportion of their daily wages, and hence warranted a deterrent sentence.At the material time, HSY was a steel and metal works sub-contractor of a park construction project in Kai Tak. Kwong and Chan joined HSY in March 2021. Kwong was tasked to source workers for HSY to work for the project under the supervision of Chan at a daily wage of $1,400.The offences took place between April and August 2021. Kwong and Chan conspired together to accept bribes totalling over $31,000 from two workers, while Chan also accepted bribes totalling over $32,000 from two other workers. The duo accepted the aforesaid bribes for assisting the four workers to secure their employment from or maintain their employment with HSY.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the duo conspired to solicit a daily rebate ranging from $300 to $500 from the four workers, and accepted bribes ranging from $10,000 to over $21,000 from each worker.HSY had rendered full assistance to the ICAC during its investigation.The prosecution was today represented by ICAC officer Derek So.In recent years, the ICAC has taken a series of enforcement actions against solicitation and acceptance of illegal rebates from construction workers and launched a series of relevant publicity and education programmes. An ICAC spokesperson urges construction workers not to tolerate corruption. Should they be asked to pay bribes in exchange for their employment, they should report to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366. 25
Oct 2023Ex-director of contractor charged by ICAC guilty of bribery over HK$34m Macao hotel air-conditioning maintenance contractsThe Hong Kong ICAC had earlier charged a then senior sales manager and a then director of two air-conditioning maintenance contractors for allegedly offering bribes of over HK$1 million to a then director of a hotel group for air-conditioning maintenance contracts of a hotel in Macao worth totalling around HK$34 million. Following the guilty plea of the then senior sales manager last month, the then director concerned was today (October 25) convicted at the District Court after trial.Woo Tak-hoi, 56, then director of Wai Luen Air-conditioning Limited (Wai Luen), was found guilty of two counts of conspiracy to offer advantages to an agent, contrary to section 9(2)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance.Judge Mr Frankie Yiu Fun-che adjourned the case to November 21 for mitigation and sentence, pending Woo’s background report. Woo was remanded in the custody of the Correctional Services Department.At the material time, Wai Luen and Oh Luen Air Conditioning Equipment Limited (Oh Luen) were companies respectively established in Hong Kong and Macao for providing air-conditioning installation and maintenance services to customers. Both companies were operated by the same proprietor. Li Kin-wang, then senior sales manager of Oh Luen, was responsible for Oh Luen’s daily operation including submitting quotations to other companies for sourcing businesses. Li was required to report to Woo about Oh Luen’s operational matters.Since 2013, Oh Luen had been an approved supplier of Wynn Resorts (Macau) S.A. (Wynn), which operated hotels and casinos in Macao. Wynn prohibited its staff from soliciting or accepting advantages from suppliers / contractors when discharging their duties.The court heard that Li got acquainted with a then director of Wynn in 2014. The then director solicited bribes from Li in exchange for the opportunities for Oh Luen to submit quotations or tenders to Wynn over air-conditioning system maintenance services. Both Woo and Li agreed to bribe the director in order to secure more businesses for Oh Luen.Between June 2014 and July 2015, Li offered three bribes totalling over HK$450,000 to the director by cheque or bank transfer in Hong Kong. During the period, the businesses between Oh Luen and Wynn increased.Between November 2016 and January 2017, Woo and Li, in Hong Kong, conspired to pay two bribes totalling HK$560,000 to the director.Hong Kong ICAC enquiries revealed that between 2014 and 2017, Wynn had awarded numerous air-conditioning maintenance contracts worth around HK$34 million in total to Oh Luen.Co-defendant Li had pleaded guilty to five counts of bribery at the District Court on September 11. The Judge adjourned the case to November 21 for sentence.Wynn had rendered full assistance to the Hong Kong ICAC during its investigation into the case. The Hong Kong ICAC was grateful to the Macao Commission Against Corruption for its invaluable assistance to the Commission during its investigation into the case, including arranging interviews with witnesses in Macao.The prosecution was today represented by Acting Senior Public Prosecutor Douglas Lau, assisted by ICAC officer Leung Po-shan. 19
Oct 2023Joint press release: SFC, ICAC and AFRC conduct first tripartite operation against suspected corporate fraud and misconductThe Securities and Futures Commission (SFC), the Independent Commission Against Corruption (ICAC) and the Accounting and Financial Reporting Council (AFRC) have conducted the first tripartite operation involving two Hong Kong-listed companies on suspicion that they falsified corporate transactions totalling HK$193 million (approximately RMB177.56 million) (Note 1).A total of 16 premises were jointly searched by the three agencies. In the joint operation, three persons, including an executive director of a listed company, were arrested by the ICAC for suspected offences of agent using documents with intent to deceive his principal under the Prevention of Bribery Ordinance.The suspected fictitious transactions were uncovered during the course of a joint SFC- ICAC operation against the suspected ramp-and-dump syndicate (Note 2).The investigation revealed that the management of the two companies listed on the Stock Exchange of Hong Kong Limited had allegedly conspired with members of the syndicate to falsify corporate transactions purporting that the two listed companies had conducted various transactions with a number of companies in Hong Kong and Mainland China between May 2018 and December 2021, resulting in overstatements of HK$83.9 million (approximately RMB77.2 million) in their revenue and misstatement of assets in the sum of HK$109.2 million (approximately RMB100.5 million). Such overstatements and misstatement of assets might lead to disclosure of false or misleading information in the interim results and/or annual reports of the two listed companies.The SFC, the ICAC and the AFRC conducted the joint operation respectively in relation to suspected corporate fraud and misconduct, corruption offences of agent using documents with intent to deceive his principal and auditors’ misconduct concerning the said suspected fictitious transactions.The SFC’s Executive Director of Enforcement, Mr Christopher Wilson, said: “Directors of listed companies are entrusted to govern truthful and accurate financial disclosures which serve as the bedrock of our capital markets. The tripartite operation, and the first with the AFRC, underscores our shared commitment to holding accountable those who abuse that trust and defraud investors. Our partnership with the ICAC and AFRC also allowed us to pool our resources, expertise and intelligence to bring swift enforcement actions against individuals and corrupt corporate practices that undermine market integrity and erode investor confidence.”“We appreciate the China Securities Regulatory Commission for their extensive assistance and continued support in combating cross-boundary offences and misconduct,” added Mr Wilson.Deputy Commissioner and Head of Operations of the ICAC, Mr Ricky Yau Shu-chun, said: “The tripartite operation showcases our common goal in upholding the integrity of the financial market. The ICAC will continue to closely collaborate with the SFC and the AFRC, as well as other financial regulators, to combat corruption, illicit activities and misconduct relating to listed companies. By adopting our time-tested three-pronged strategy combining enforcement, prevention and education, the ICAC will continue to work in concert with financial regulators to enhance corporate governance and professionalism. We will strive to maintain a fair business environment in Hong Kong, to sustain Hong Kong’s status as a clean international financial centre and to ensure the trust of stakeholders in the financial system.”Ms Janey Lai, Acting Chief Executive Officer of the AFRC, said, “The Joint Operation represents the AFRC’s absolute commitment to take all necessary actions to ensure integrity and quality of financial reporting and audit in Hong Kong. As the financial markets of Mainland China and Hong Kong are interconnected, the cross-border collaboration between regulators on both sides will intensify and is expected to bring about more effective enforcement. These positive outcomes contribute to the resilience of the financial market, safeguard the interests of investors, reinforce public confidence in the quality of financial reporting, and uphold Hong Kong’s status as an international finance centre.”No further comment will be made as investigations are ongoing.Notes:1. The joint operation was conducted under the arrangement of the Memoranda of Understanding respectively signed by the SFC with the ICAC and the AFRC. Please see the websites of the SFC, the ICAC and the AFRC.2. Please see the joint press releases of the SFC and the ICAC dated 10 November 2022 and 15 March 2023. 19
Oct 2023Ex-coordinator of logistics company charged by ICAC with fraud for concealing conflict of interest over $9.1m air cargo space ordersA then coordinator of a logistics company was charged by the ICAC yesterday (October 18) for allegedly deceiving his then employer into placing air cargo space orders involving totalling over $9.1 million via two companies by concealing his connection and agreement with the two companies.Wong Wing-ho, 40, then airfreight and business development coordinator of MBS Logistics Limited (MBS), faces two counts of fraud, contrary to section 16A of the Theft Ordinance.The defendant was released on ICAC bail, pending his appearance at the Eastern Magistrates’ Courts tomorrow (October 20) for mention. The prosecution will apply for transferring the case to the District Court for plea.MBS is a local subsidiary of MBS Logistics Group, a worldwide logistics company which provides logistic services to its clients including placing air cargo space orders through different carriers’ agents.At the material time, the defendant was an airfreight and business development coordinator of MBS. He was responsible for seeking quotations from carriers’ agents for clients, arranging the delivery of clients’ goods to the agents, and submitting the agents’ invoices to MBS for payment approval.The alleged offences took place between March 2016 and June 2019, and involved over 430 air cargo space orders, totalling over $9.1 million. It is alleged that those orders were placed by MBS with one of the carriers’ agents via two other companies, namely JTC Development Limited (JTC) and AK Logistics Limited (AKL).It is alleged that the defendant had concealed from MBS his interests in JTC and his agreement made with AKL, and with intent to defraud, induced MBS to place air cargo space orders with the aforesaid carriers’ agent via JTC and AKL.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant had recommended MBS to place the aforesaid orders via JTC and AKL and make the relevant payments to the two companies. It is alleged that he had never disclosed to MBS that he had interests in JTC and his agreement with AKL over the orders.The investigation revealed that the defendant gained over $1.28 million from the orders concerned.Had MBS been aware of the defendant’s connection and agreement with JTC and AKL, it would not have purchased any air cargo space with the carriers’ agent via JTC and AKL, and settled payments for the orders.MBS has rendered full assistance to the ICAC during its investigation into the case.The ICAC reminds staff of business organisations to avoid conflict of interest situations and to make timely declarations to their employers. Concealing any conflict of interest in relation to one’s official duties to benefit himself may contravene the criminal law. It may constitute a breach of the Prevention of Bribery Ordinance if offering and accepting of bribes are involved.
Oct 2023ICAC corruption probe reveals fraudulent claims involving insurance intermediaryThe ICAC today (October 27) charged an insurance intermediary after a corruption investigation revealed that he had allegedly conspired together with two policyholders to deceive an insurer into paying accident insurance compensation to them by making false representations about their injuries.Lalwani Jay Jerome, 34, then referrer engaged by Asia One Asset Management Limited (Asia One), faces eight counts of conspiracy to defraud, contrary to the Common Law.The defendant was released on ICAC bail, pending his appearance in the Eastern Magistrates’ Courts next Wednesday (November 1) for plea.At the material time, insurance broker Asia One was entrusted by AIA International Limited (AIA) to sell its insurance products to customers. When the case took place between late 2017 and June 2018, two policyholders respectively took out an AIA life insurance policy with an accident rider through the defendant.The insurance policies covered accident medical expenses reimbursement and accident indemnity. The policyholders had to submit an accident insurance claim to AIA directly or via Asia One, supported by documentary proof, including receipts of medical consultations or treatments and sick leave certificates issued by doctors or physiotherapists.It is alleged that the defendant had conspired with the two policyholders to defraud AIA by dishonestly falsely representing that the latter had respectively injured his/her back, knees or ankle and that the supporting documents issued by two doctors and two physiotherapy clinics were genuine, thereby inducing or causing AIA to pay insurance compensation totalling at least over $120,000 to them.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the two policyholders did not suffer from the aforesaid injuries, nor did they receive any treatment or take the sick leave concerned.The two policyholders concerned, Tam Kai-chun, 36 and Lam In-kwan, 32, were also charged by the ICAC for their roles in separate cases. The duo had earlier pleaded guilty and their cases were both adjourned to February 2, 2024 for mention.AIA has rendered full assistance to the ICAC during its investigation into the case.The ICAC will continue to collaborate with the industry in providing integrity training to insurance intermediaries. The ICAC has recently organised a Professional Anti-Corruption Training for Management in Insurance Sector for 28 insurance companies in order to enhance integrity management in the industry. For more information on the ICAC’s preventive and educational services for the industry, please visit the Ethics Promotion Website for the Insurance Industry produced by the Hong Kong Business Ethics Development Centre, and the Corruption Prevention Department’s Corruption Prevention Advisory Service Web Portal. 26
Oct 2023Two former team leaders of park construction project charged by ICAC jailed for bribery over worker employmentTwo then team leaders of a sub-contractor of a park construction project, charged by the ICAC, were today (October 26) sentenced at the Kowloon City Magistrates’ Courts to jail terms of five months and six months respectively for accepting bribes totalling over $64,000 from four workers for securing the latter’s employment with the sub-contractor.The defendants were Kwong Chi-kit, 39; and Chan Wai-kwok, 35, both former team leaders of HK Huangshangyou Steel Industrial Limited (HSY). Kwong was sentenced to five months’ imprisonment, while Chan was jailed for six months. The duo were ordered by Magistrate Mr Peter Yu Chun-cheung to repay the bribes concerned as restitution to their then employer.Kwong and Chan earlier pleaded guilty to two joint charges of conspiracy for agents to accept an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance. Chan alone further pleaded guilty to two other similar offences.In sentencing, the Magistrate remarked that the defendants had repeatedly accepted from the workers bribes payments which constituted a rather substantial proportion of their daily wages, and hence warranted a deterrent sentence.At the material time, HSY was a steel and metal works sub-contractor of a park construction project in Kai Tak. Kwong and Chan joined HSY in March 2021. Kwong was tasked to source workers for HSY to work for the project under the supervision of Chan at a daily wage of $1,400.The offences took place between April and August 2021. Kwong and Chan conspired together to accept bribes totalling over $31,000 from two workers, while Chan also accepted bribes totalling over $32,000 from two other workers. The duo accepted the aforesaid bribes for assisting the four workers to secure their employment from or maintain their employment with HSY.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the duo conspired to solicit a daily rebate ranging from $300 to $500 from the four workers, and accepted bribes ranging from $10,000 to over $21,000 from each worker.HSY had rendered full assistance to the ICAC during its investigation.The prosecution was today represented by ICAC officer Derek So.In recent years, the ICAC has taken a series of enforcement actions against solicitation and acceptance of illegal rebates from construction workers and launched a series of relevant publicity and education programmes. An ICAC spokesperson urges construction workers not to tolerate corruption. Should they be asked to pay bribes in exchange for their employment, they should report to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366. 25
Oct 2023Ex-director of contractor charged by ICAC guilty of bribery over HK$34m Macao hotel air-conditioning maintenance contractsThe Hong Kong ICAC had earlier charged a then senior sales manager and a then director of two air-conditioning maintenance contractors for allegedly offering bribes of over HK$1 million to a then director of a hotel group for air-conditioning maintenance contracts of a hotel in Macao worth totalling around HK$34 million. Following the guilty plea of the then senior sales manager last month, the then director concerned was today (October 25) convicted at the District Court after trial.Woo Tak-hoi, 56, then director of Wai Luen Air-conditioning Limited (Wai Luen), was found guilty of two counts of conspiracy to offer advantages to an agent, contrary to section 9(2)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance.Judge Mr Frankie Yiu Fun-che adjourned the case to November 21 for mitigation and sentence, pending Woo’s background report. Woo was remanded in the custody of the Correctional Services Department.At the material time, Wai Luen and Oh Luen Air Conditioning Equipment Limited (Oh Luen) were companies respectively established in Hong Kong and Macao for providing air-conditioning installation and maintenance services to customers. Both companies were operated by the same proprietor. Li Kin-wang, then senior sales manager of Oh Luen, was responsible for Oh Luen’s daily operation including submitting quotations to other companies for sourcing businesses. Li was required to report to Woo about Oh Luen’s operational matters.Since 2013, Oh Luen had been an approved supplier of Wynn Resorts (Macau) S.A. (Wynn), which operated hotels and casinos in Macao. Wynn prohibited its staff from soliciting or accepting advantages from suppliers / contractors when discharging their duties.The court heard that Li got acquainted with a then director of Wynn in 2014. The then director solicited bribes from Li in exchange for the opportunities for Oh Luen to submit quotations or tenders to Wynn over air-conditioning system maintenance services. Both Woo and Li agreed to bribe the director in order to secure more businesses for Oh Luen.Between June 2014 and July 2015, Li offered three bribes totalling over HK$450,000 to the director by cheque or bank transfer in Hong Kong. During the period, the businesses between Oh Luen and Wynn increased.Between November 2016 and January 2017, Woo and Li, in Hong Kong, conspired to pay two bribes totalling HK$560,000 to the director.Hong Kong ICAC enquiries revealed that between 2014 and 2017, Wynn had awarded numerous air-conditioning maintenance contracts worth around HK$34 million in total to Oh Luen.Co-defendant Li had pleaded guilty to five counts of bribery at the District Court on September 11. The Judge adjourned the case to November 21 for sentence.Wynn had rendered full assistance to the Hong Kong ICAC during its investigation into the case. The Hong Kong ICAC was grateful to the Macao Commission Against Corruption for its invaluable assistance to the Commission during its investigation into the case, including arranging interviews with witnesses in Macao.The prosecution was today represented by Acting Senior Public Prosecutor Douglas Lau, assisted by ICAC officer Leung Po-shan. 19
Oct 2023Joint press release: SFC, ICAC and AFRC conduct first tripartite operation against suspected corporate fraud and misconductThe Securities and Futures Commission (SFC), the Independent Commission Against Corruption (ICAC) and the Accounting and Financial Reporting Council (AFRC) have conducted the first tripartite operation involving two Hong Kong-listed companies on suspicion that they falsified corporate transactions totalling HK$193 million (approximately RMB177.56 million) (Note 1).A total of 16 premises were jointly searched by the three agencies. In the joint operation, three persons, including an executive director of a listed company, were arrested by the ICAC for suspected offences of agent using documents with intent to deceive his principal under the Prevention of Bribery Ordinance.The suspected fictitious transactions were uncovered during the course of a joint SFC- ICAC operation against the suspected ramp-and-dump syndicate (Note 2).The investigation revealed that the management of the two companies listed on the Stock Exchange of Hong Kong Limited had allegedly conspired with members of the syndicate to falsify corporate transactions purporting that the two listed companies had conducted various transactions with a number of companies in Hong Kong and Mainland China between May 2018 and December 2021, resulting in overstatements of HK$83.9 million (approximately RMB77.2 million) in their revenue and misstatement of assets in the sum of HK$109.2 million (approximately RMB100.5 million). Such overstatements and misstatement of assets might lead to disclosure of false or misleading information in the interim results and/or annual reports of the two listed companies.The SFC, the ICAC and the AFRC conducted the joint operation respectively in relation to suspected corporate fraud and misconduct, corruption offences of agent using documents with intent to deceive his principal and auditors’ misconduct concerning the said suspected fictitious transactions.The SFC’s Executive Director of Enforcement, Mr Christopher Wilson, said: “Directors of listed companies are entrusted to govern truthful and accurate financial disclosures which serve as the bedrock of our capital markets. The tripartite operation, and the first with the AFRC, underscores our shared commitment to holding accountable those who abuse that trust and defraud investors. Our partnership with the ICAC and AFRC also allowed us to pool our resources, expertise and intelligence to bring swift enforcement actions against individuals and corrupt corporate practices that undermine market integrity and erode investor confidence.”“We appreciate the China Securities Regulatory Commission for their extensive assistance and continued support in combating cross-boundary offences and misconduct,” added Mr Wilson.Deputy Commissioner and Head of Operations of the ICAC, Mr Ricky Yau Shu-chun, said: “The tripartite operation showcases our common goal in upholding the integrity of the financial market. The ICAC will continue to closely collaborate with the SFC and the AFRC, as well as other financial regulators, to combat corruption, illicit activities and misconduct relating to listed companies. By adopting our time-tested three-pronged strategy combining enforcement, prevention and education, the ICAC will continue to work in concert with financial regulators to enhance corporate governance and professionalism. We will strive to maintain a fair business environment in Hong Kong, to sustain Hong Kong’s status as a clean international financial centre and to ensure the trust of stakeholders in the financial system.”Ms Janey Lai, Acting Chief Executive Officer of the AFRC, said, “The Joint Operation represents the AFRC’s absolute commitment to take all necessary actions to ensure integrity and quality of financial reporting and audit in Hong Kong. As the financial markets of Mainland China and Hong Kong are interconnected, the cross-border collaboration between regulators on both sides will intensify and is expected to bring about more effective enforcement. These positive outcomes contribute to the resilience of the financial market, safeguard the interests of investors, reinforce public confidence in the quality of financial reporting, and uphold Hong Kong’s status as an international finance centre.”No further comment will be made as investigations are ongoing.Notes:1. The joint operation was conducted under the arrangement of the Memoranda of Understanding respectively signed by the SFC with the ICAC and the AFRC. Please see the websites of the SFC, the ICAC and the AFRC.2. Please see the joint press releases of the SFC and the ICAC dated 10 November 2022 and 15 March 2023. 19
Oct 2023Ex-coordinator of logistics company charged by ICAC with fraud for concealing conflict of interest over $9.1m air cargo space ordersA then coordinator of a logistics company was charged by the ICAC yesterday (October 18) for allegedly deceiving his then employer into placing air cargo space orders involving totalling over $9.1 million via two companies by concealing his connection and agreement with the two companies.Wong Wing-ho, 40, then airfreight and business development coordinator of MBS Logistics Limited (MBS), faces two counts of fraud, contrary to section 16A of the Theft Ordinance.The defendant was released on ICAC bail, pending his appearance at the Eastern Magistrates’ Courts tomorrow (October 20) for mention. The prosecution will apply for transferring the case to the District Court for plea.MBS is a local subsidiary of MBS Logistics Group, a worldwide logistics company which provides logistic services to its clients including placing air cargo space orders through different carriers’ agents.At the material time, the defendant was an airfreight and business development coordinator of MBS. He was responsible for seeking quotations from carriers’ agents for clients, arranging the delivery of clients’ goods to the agents, and submitting the agents’ invoices to MBS for payment approval.The alleged offences took place between March 2016 and June 2019, and involved over 430 air cargo space orders, totalling over $9.1 million. It is alleged that those orders were placed by MBS with one of the carriers’ agents via two other companies, namely JTC Development Limited (JTC) and AK Logistics Limited (AKL).It is alleged that the defendant had concealed from MBS his interests in JTC and his agreement made with AKL, and with intent to defraud, induced MBS to place air cargo space orders with the aforesaid carriers’ agent via JTC and AKL.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant had recommended MBS to place the aforesaid orders via JTC and AKL and make the relevant payments to the two companies. It is alleged that he had never disclosed to MBS that he had interests in JTC and his agreement with AKL over the orders.The investigation revealed that the defendant gained over $1.28 million from the orders concerned.Had MBS been aware of the defendant’s connection and agreement with JTC and AKL, it would not have purchased any air cargo space with the carriers’ agent via JTC and AKL, and settled payments for the orders.MBS has rendered full assistance to the ICAC during its investigation into the case.The ICAC reminds staff of business organisations to avoid conflict of interest situations and to make timely declarations to their employers. Concealing any conflict of interest in relation to one’s official duties to benefit himself may contravene the criminal law. It may constitute a breach of the Prevention of Bribery Ordinance if offering and accepting of bribes are involved.