Recent ICAC Cases


26
Jan 2024
Ex-chief operations officer of medical device firm charged as ICAC probe reveals $3.1m project payments fraudA then chief operations officer of a medical device firm was charged by the ICAC yesterday (January 25) with fraud after a corruption investigation revealed that he allegedly defrauded the medical device firm payments of over $3.1 million for a research and development (R&D) and production project by making false representation that an international corporation was the buyer of the project.Francis Fung Chung-hung, 73, former chief operations officer of Flussig Medtech Limited (Flussig), faces one count of fraud, contrary to Section 16A(1) of the Theft Ordinance. He was released on bail, pending his appearance at the Eastern Magistrates’ Courts next Tuesday (January 30) for mention, when the case will be transferred to the District Court for plea.In 2018, the defendant invited an investor to invest in the R&D and production project of a medical device. The investor subsequently set up Flussig to run the project and employed the defendant as its chief operations officer. Due to the slow progress of the project, the defendant recommended the investor to invest in another R&D and production project of a coffee machine to make profit to fund the medical device project.The investor agreed to invest in the coffee machine project through Flussig and accepted defendant’s recommendation to engage BM Technology Design Limited (BM Tech) and Wargames Factory Limited (Wargames Factory) for software development, manufacturing plastic parts and supplying prototype.It is alleged that between October 2019 and April 2020, the defendant, with intent to defraud, induced Flussig to settle payments totalling over $3.1 million with BM Tech and Wargames Factory by falsely representing to Flussig that an international beverage corporation would purchase the coffee machine project from Flussig.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the international beverage corporation had never entered into any business negotiation or agreement with Flussig.Flussig and the international beverage corporation concerned have rendered full assistance to the ICAC during its investigation into the case.
23
Jan 2024
Ex-salesman of groceries supplier charged as ICAC probe reveals fraud of goods worth $12mThe ICAC today (January 23) charged a then senior sales executive of a groceries supplier with fraud after a corruption investigation revealed that he allegedly induced the supplier to release goods worth totalling over $12 million in nine months by making false representations about the orders placed by various clients.Mak Ka-wing, 45, former senior sales executive of Dah Chong Hong Limited (DCH), faces 32 counts of fraud, contrary to Section 16A of the Theft Ordinance. He was released on bail, pending his appearance at the Kwun Tong Magistrates’ Courts on Thursday (January 25) for mention, when the case will be transferred to the District Court for plea.At the material time, the defendant was a senior sales executive of DCH which engaged in the supply of groceries. He was responsible for handling groceries orders placed by clients. Upon receiving a request from a client, an invoice would be issued for arranging release or delivery of goods to the client.In the nine months between August 2020 and April 2021, the defendant, with intent to defraud, allegedly induced DCH to arrange release or delivery of goods with the total value of over $12 million by falsely representing to DCH that 32 clients had ordered goods from the company.The ICAC investigation arose from a corruption complaint. Enquiries revealed that during the abovementioned period, the defendant allegedly caused DCH to release the relevant goods by placing fictitious orders. It is alleged that the defendant subsequently sold the goods to other parties privately but only paid about $278,000 to DCH.DCH has rendered full assistance to the ICAC during its investigation into the case.
19
Jan 2024
Telecom company’s assistant manager charged by ICAC in fibre installation service orders conflict of interest case faces perversionA then assistant manager of a telecommunications company and three others were earlier charged by the ICAC for allegedly concealing the assistant manager’s interest in a contractor to secure fibre installation service orders worth totalling $180,000. The assistant manager was today (January 19) laid with an additional perversion charge for allegedly making a false representation about declaring his role in the contractor to the company during the anti-graft agency’s investigation.The four defendants were Chan Chun-kin, 43, former 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, 36, technician of a contractor of i-CABLE. They earlier pleaded not guilty to three counts of obtaining pecuniary advantage by deception, contrary to Section 18(1) of the Theft Ordinance.When the four defendants appeared at the West Kowloon Magistrates’ Courts for a pre-trial review today, Chan Chun-kin was laid with an additional count of doing an act or a series of acts tending and intended to pervert the course of public justice, contrary to Common Law, upon further legal advice of the Department of Justice.Chan Chun-kin pleaded not guilty to the additional charge. Magistrate Mr Jason Wan Siu-ming adjourned the case to April 2 for trial and granted bail to the four defendants.)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 that they should fill in and submit declaration forms to declare their conflict of interest in writing to the management.The charges earlier laid against the four defendants alleged that between May and August 2022, they dishonestly obtained for Lokkin opportunities to earn remuneration in respect of three service orders regarding fibre installation at three 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. Lokkin was subsequently awarded the three service orders of fibre installation for three estates worth totalling $180,000.The additional charge alleged that Chan Chun-kin intended to pervert the course of public justice between mid-September and early October 2022, which was after his arrest by the ICAC. He allegedly made a false representation to i-CABLE that he had submitted a declaration form to the company in late 2021 to declare his role in Lokkin.An ICAC spokesperson notes that perverting the course of public justice is a serious offence. An offender is liable on conviction to an imprisonment for any term and a fine of any amount. Should such illegal acts be found in ICAC cases, the Commission would not tolerate them and would follow up on them in a serious manner.i-CABLE has rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Claudia Ng, assisted by ICAC officer Chris Lai.
10
Jan 2024
Property officer charged by ICAC guilty of conspiring with renovation contractor to deceive IOThe ICAC had earlier charged a then property officer of a property management company and a renovation contractor as a corruption investigation revealed that they had conspired together to deceive the Incorporated Owners (IO) of a private residential building in To Kwa Wan into awarding a water pipe replacement project to the contractor by using false quotations. The property officer was today (January 10) convicted of conspiracy to defraud at the Kowloon City Magistrates’ Courts while the renovation contractor, who pleaded guilty earlier, was jailed for two months and two weeks.Lau Cheuk-yan, 42, former property officer of Harbourfield Property Management Limited (Harbourfield), was today convicted of one count of conspiracy to defraud, contrary to the Common Law. She was granted bail until January 24 for sentence, pending her background report.Co-defendant Chan Kam-wah, 57, director-cum-shareholder of Hing Fat Building Maintenance Company Limited (Hing Fat), earlier pleaded guilty to the conspiracy to defraud charge; and three counts of possessing a false instrument, contrary to section 75(2) of the Crimes Ordinance.Magistrate Mr Philip Chan Chee-fai remarked that the court had to mete out a custodial sentence given the serious nature of the case involving false instruments.At the material time, Harbourfield provided property management service to Sunny Court, a private residential building in To Kwa Wan. Staff of Harbourfield were required to source at least three quotations from its approved contractors before conducting any renovation works worth between $10,000 and $200,000.In 2021, Harbourfield conducted a quotation exercise for the Sunny Court to select a renovation contractor for a water pipe replacement project. The IO of Sunny Court received three quotations via Lau. In May 2021, the project was awarded to Hing Fat, which offered the lowest bid of $70,000.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the two engineering companies concerned were not approved contractors of Harbourfield and they had never submitted the two quotations. But Lau and Chan conspired together to defraud the IO of Sunny Court by falsely representing that the two quotations were genuine. It was also revealed that Chan possessed three other false quotations purportedly issued by one of the two engineering companies to another residential building, a commercial building and a shopping mall.Harbourfield and the IO of Sunny Court had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Steven Liu, assisted by ICAC officer Potina Koo.
09
Jan 2024
Newspaper’s sales rep duo admit bribing supervisor for commissions over event sponsorshipsTwo sales representatives of the advertising department of a newspaper company, charged by the ICAC, admitted at the District Court today (January 9) their offering of bribes totalling about $88,000 to a supervisor after receiving commissions of a total of over $260,000 for securing event sponsorships.Lee Kwok-wai, 50, former sales representatives of Hong Kong Commercial Daily (HKCD); and Ngo Kam-fai, 44, sales representatives of HKCD, respectively pleaded guilty to four counts and one count of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance (POBO).Lee further admitted one count of conspiracy for an agent to solicit an advantage, contrary to Section 9(1)(a) of the POBO and Section 159A of the Crimes Ordinance. Two other similar charges against him were left on file at the District Court.Judge Mr Clement Lee Hing-nin adjourned the case to March 6 for mention, and granted the duo bail.At the material time, Lee and Ngo were sales representatives of the advertising department of HKCD responsible for sourcing sponsors for various events organised by HKCD. Upon securing a sponsorship, they were entitled to 10 per cent of the sponsorship amount as commission. An assistant general manager of the advertising department would assist them in securing sponsorships. The assistant general manager would receive bonuses after each event or at the end of the year, subject to the profits made, but he was not entitled to share the commissions of the duo. Meanwhile, HKCD did not allow its staff to solicit or accept any advantage in relation to its business.The court heard that between November 2019 and November 2021, Lee and Ngo were responsible for sourcing sponsorships for four events organised by HKCD. The duo eventually sourced sponsorships totalling over $2.6 million. Afterwards Lee and Ngo respectively received commissions of over $240,000 and $17,000.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the assistant general manager accompanied Lee and Ngo to meet various sponsors. The duo admitted that after securing the sponsorships, they respectively offered four bribes totalling about $83,000 and a bribe of $5,000 to the assistant general manager upon the latter’s request.Lee further admitted that between September 2021 and February 2022, he conspired together with the assistant general manager to solicit a bribe of $5,000 from another sales representative who rejected the request. The sales representative was entitled to a commission of $17,800 for securing sponsorships totalling $178,000 in one of the events of HKCD.HKCD had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Acting Senior Public Prosecutor Jason Lau, assisted by ICAC officer Rita Li.Daniel Wu Hang-chi, 43, the assistant general manager concerned, was earlier charged by the ICAC with bribery. No plea was entered and his case was adjourned to February 29 for mention.

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