Recent ICAC Cases


21
Jan 2021
One more charged for alleged role in bribery facilitated $75m L/C scamThe ICAC today (January 21) charged a director of a construction company with conspiracy to defraud and money laundering in relation to a bribery facilitated $75.3 million letters of credit (L/Cs) scam, following the prosecution of four others involved in the same investigation.The ICAC investigation arose from a corruption complaint. Subsequent enquiries revealed the alleged offences.Lau Chung-hoi, 54, shareholder-cum-director of now defunct Top Famous Construction Engineering Limited (TFCL), faces three charges – one of conspiracy to defraud, contrary to Common Law, and two of dealing with property known or believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance.The defendant will appear at the Eastern Magistrates’ Courts next Monday (January 25) for the case to be transferred to the District Court for plea.At the material time, the defendant was the shareholder-cum-director of TFCL, a construction company in Hong Kong. In September 2016, TFCL signed a memorandum of understanding with China Railway Construction (HK) Limited (CRCL), a wholly owned subsidiary of publicly listed China Railway Construction Corporation Limited (CRCC), to form joint ventures to take up certain construction projects.In December 2016, TFCL further entered into three trade agreements with China Railway International Trading (HK) Limited (CRITL), a wholly owned subsidiary of CRCL, for CRITL to act as TFCL’s purchasing agent to procure construction materials from King Tai Construction Limited (KTCL) for three other projects, with payments to be settled by L/Cs.The conspiracy to defraud charge alleges that between June 1, 2016 and March 16, 2017, the defendant conspired with Wang Xiaoshan, deputy general manager of CRCL, Lau Hing-lung, director of KTCL and chief administrative officer of TFCL, Lo Pui-yu, director of TFCL, and other persons to defraud DBS Bank Limited (DBS Bank) and cause it to make payment totalling over $75.3 million to KTCL.The charge alleges that the defendant and the abovementioned persons dishonestly applied to DBS Bank for issuing three L/Cs in favour of KTCL, knowing that there was no genuine underlying transaction for those L/Cs; and produced false documentation, including invoices, packing lists and cargo receipts, to support the applications.The remaining two charges allege that on two occasions between January 25 and 26, and May 22, 2017, the defendant dealt with two sums totalling $10.5 million, which were connected with the aforesaid conspiracy to defraud charge, in a bank account of TFCL and a personal joint bank account of the defendant, knowing or having reasonable grounds to believe that they in whole or in part directly or indirectly represented proceeds of an indictable offence.Wang Xiaoshan, 51, Lau Hing-lung, 56, Lo Pui-yu, 70, and Chan Ka-ho, 34, son-in-law of Lo and director of Azure Industrial Limited, were earlier charged with a total of 16 counts of bribery, conspiracy to defraud and money laundering for their alleged roles in the scam. The trial is scheduled for July 5 this year.CRCC, CRCL, CRITL and DBS Bank have rendered full assistance to the ICAC during its investigation.The defendant has been released on ICAC bail, pending his court appearance next Monday.
20
Jan 2021
Trio jailed up to 27 months for deceiving German electronics importer of HK$610,000Three former senior executives of a subsidiary of a German electronic products importer, charged by the ICAC, were today (January 20) sentenced to jail terms up to 27 months at the District Court for deceiving the importer of HK$610,000 in relation to the procurement and testing of television (TV) sets and other expenses.Tommy Chu king-sau, 51, former managing director of Wellon Far East Limited (Wellon); and Cylem Siu King-lam, 57, former assistant general manager of Wellon, were sentenced by Judge Mr Johnny Chan Jong-heng to 27 months’ and 23 months’ in jail respectively. Kwong Kwok-on, 43, former assistant merchandising manager of Wellon, was ordered to perform 160 hours of community service.Chu and Siu were earlier found guilty of three charges – two of conspiracy to defraud, contrary to Common Law, and one of conspiracy to falsify accounts, contrary to Section 19(1)(a) of the Theft Ordinance and Section 159A of the Crimes Ordinance. Chu and Kwong were also found guilty of one count of conspiracy to falsify accounts. Chu was further convicted of another similar offence.The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences, which took place between June 2009 and October 2013.The court heard that at the material time, Wellon was a subsidiary and the Far East Asian buying office of Schmid Electronics GmbH (SEG), a German importer of electronic products. In general, SEG would place orders with Wellon and rely on Chu’s recommendations to source appropriate Mainland manufacturers for manufacturing video and audio products. Wellon would then place orders with manufacturers, arrange product testing, make payments to manufacturers and arrange shipment of the products to SEG’s clients in Europe.The court heard that between March and May 2012, SEG received four orders from its customers and tasked Wellon to source for Mainland manufacturers to produce various TV sets and spare parts.Chu and Siu then conspired with a then account manager of Wellon to falsely represent to SEG that a Mainland manufacturer known to SEG was sourced for the production and induced SEG to make a total payment of about US$1.2 million (about HK$9.3 million) to Wellon. In fact, another Mainland manufacturer was secretly engaged to take up the production at a lower price and inflated the aforesaid total payment by about US$34,000 (over HK$260,000).For the purpose of book-keeping in Wellon’s accounting records, Chu and Siu conspired with the aforesaid account manager to falsify purchase orders issued by Wellon purportedly showing that the TV sets and spare parts were supplied by Shiny Tech Development Limited (Shiny Tech) which was owned by Siu.The court also heard that upon SEG’s instruction, Wellon had all along engaged a particular laboratory to conduct electromagnetic compatibility tests on products before shipping them to Europe. After Speedy Well Technology Limited (Speedy Well) was set up by Siu in February 2010, Chu and Siu conspired with the Wellon account manager to falsely represent to SEG that Speedy Well would provide test reports in the name of that laboratory at a cheaper rate.As a result, SEG was induced to pay for 43 test reports purportedly issued by Speedy Well at totalling HK$504,000. The tests were in fact conducted by another laboratory and the total payment was inflated by about HK$246,000.Siu had never disclosed his interest in Shiny Tech and Speedy Well with Wellon, the court heard.In addition, Chu and Kwong had conspired together and with the Wellon account manager and Chu’s then wife to falsify a number of payment vouchers and salary receipts which caused Wellon to pay the wife HK$42,000 for purportedly working as a part-time receptionist of Wellon.Chu had also conspired with the Wellon account manager to falsify 10 payment vouchers, which purported to be entertainment expenses totalling over HK$66,000 incurred by them for the business purpose of Wellon. In fact, the expenses concerned were incurred by their personal consumptions.SEG had rendered full assistance to the ICAC during its investigation.The prosecution was today represented by prosecuting counsel Thomas Iu, assisted by ICAC Officer Gavin Lau.
18
Jan 2021
Duo charged with $185,000 bribery over supervision of cable trenching worksA former manager of a sister company of a power supplier and a contractor were charged by the ICAC last Friday (January 15) with bribery involving $185,000 in relation to the supervision of cable trenching works.Chan Ka-man, 45, former project manager of CLP Engineering Limited (CLP Engineering), faces nine charges – five of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO), and four of agent using a document with intent to deceive his principal, contrary to Section 9(3) of the POBO. CLP Engineering was subsequently renamed as CLPe Solutions Limited.Co-defendant Patrick Ng Man-Kit, 43, person-in-charge of Fu Hong Engineering Limited (Fu Hong), faces six counts of offering an advantage to an agent, contrary to Section 9(2)(a) of the POBO.The defendants will appear at the West Kowloon Magistrates’ Courts tomorrow (January 19) for plea.At the material time, CLP Engineering was a sister company of CLP Power Hong Kong Limited (CLP) responsible for cable trenching works awarded by CLP. CLP Engineering and CLP were subsidiaries of CLP Holdings Limited (CLP Holdings).Chan was a project manager of CLP Engineering posted to its distribution cable section of the power engineering branch. He was tasked to supervise cable trenching works carried out by contractors, including Fu Hong, in Sham Shui Po District. Ng was the person-in-charge of Fu Hong.Five of the charges allege that on five occasions between November 17, 2014 and March 3, 2017, Chan, without lawful authority or reasonable excuse, accepted from Ng five loans each ranging from $20,000 to $50,000, totalling $135,000, on account of the supervision of cable trenching works in Sham Shui Po District contracted to Fu Hong by CLP Engineering.Six other charges allege that Ng, without lawful authority or reasonable excuse, offered to Chan the aforesaid five loans and another loan of $50,000 on the abovementioned five occasions and another occasion on September 27, 2016 respectively for the same purpose.The remaining four charges allege that on four occasions between December 4, 2014 and an unknown date in late 2017, Chan, with intent to deceive his principal, used four code of conduct compliance statements which contained false, erroneous or defective statements, namely that he had not taken any action which would violate “avoiding conflicts of interest” in the code of conduct issued by CLP Holdings to its subsidiaries, to mislead CLP Engineering.CLP Holdings earlier referred a corruption complaint to the ICAC and rendered full assistance to the ICAC during its investigation into the case.The defendants have been released on ICAC bail, pending their court appearance tomorrow.
15
Jan 2021
Cleaning company director guilty of bribery over service supervisionA cleaning company director, charged by the ICAC, was today (January 15) convicted at the Eastern Magistrates’ Courts of bribing two property officers with about $50,000 for lax supervision over cleaning services provided to three residential buildings in North Point.Suen Wah-sing, 63, sole director cum shareholder of Great Honour Cleaning Services Limited (Great Honour), was found guilty of one count of conspiracy for an agent to accept an advantage, contrary to Section 9(1)(b) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance.Deputy Magistrate Ms Vivian Ho Wai-han adjourned the case to February 1 for sentence, pending a background report. The defendant was remanded in the custody of the Correctional Services Department.The court heard that at the material time, the defendant was the sole director cum shareholder of Great Honour. In July 2015, Great Honour was engaged by the Incorporated Owners of Kam Tao Building, Ngan Tao Building and Hoi Tao Building (the IO) to provide cleaning services for the three adjacent residential buildings in North Point for two years.The performance of Great Honour was supervised by two property officers of a property management company engaged by the IO. Since the commencement of the contract, the defendant had been paying “protection money” by cash or by deposits into the Hong Kong Jockey Club betting accounts of the two property officers upon their solicitation.The court heard that in July 2017, the cleaning services contract was renewed for another two years. The defendant ceased to make payments to the two property officers in late 2017. Since then, the duo became pickier about the performance of Great Honour and its cleaners.The defendant reported the duo’s solicitation to the IO in February 2018. A month later, Great Honour’s cleaning services contract was terminated by the IO due to its unsatisfactory performance.The court heard that the “protection money” concerned amounted to about $50,000.The IO and the property management company concerned had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Flora Cheng, assisted by ICAC officer Samuel Wong.
15
Jan 2021
Works contractor admits bribery over $1.3m air-conditioning works of hotelThe proprietor of a works contractor, charged by the ICAC, admitted at the Eastern Magistrates’ Courts today (January 15) bribery charges involving illegal rebates totalling about $135,000 in relation to air-conditioning works and a maintenance term contract of the hotel worth totalling over $1.3 million.Wong Man-kin, 47, sole proprietor of SY Engineering And Repair Limited (SY Engineering), pleaded guilty to three charges – two of conspiracy for an agent to accept an advantage, contrary to Section 9(1)(b) of the Prevention of Bribery Ordinance (POBO) and Section 159A of the Crimes Ordinance; and one of offering advantage to an agent, contrary to Section 9(2)(b) of POBO.Magistrate Ms Winnie Lau Yee-wan adjourned the case to January 29 for mitigation and sentence, pending a background report. The defendant was remanded in the custody of the Correctional Services Department.The court heard that at the material time, Wong was the sole proprietor of SY Engineering. Upon the introduction by the director of engineering of Crowne Plaza Hong Kong Causeway Bay (Crowne Plaza), Fan Kar-chi, SY Engineering became an air-conditioning system maintenance contractor of the hotel.After the primary air units (PAUs) and air handling units (AHUs) in Crowne Plaza gradually broke down in 2018, Fan was requested to arrange for urgent repair works. Seven PAUs/AHUs repair and replacement work orders totalling $473,500 were subsequently awarded to SY Engineering between June 2018 and January 2019.In addition, an air-conditioning maintenance term contract of Crowne Plaza was due for renewal in September 2018. SY Engineering offered the lowest bid in the subsequent tendering exercise, and was awarded the term contract at $843,000 upon Fan’s recommendation.The court heard that SY Engineering was required to submit invoices, together with service reports, endorsed by Fan to Crowne Plaza for payments.Unbeknown to Crowne Plaza, Fan and Wong had an agreement to equally share SY Engineering’s profits in the aforesaid seven PAUs/AHUs repair and replacement work orders. The duo also agreed that Fan would accept $10,000 to $15,000 per month in relation to the air-conditioning maintenance term contract.As a result, Fan accepted a total of over $80,000 offered by Wong in relation to five of the abovementioned PAUs/AHUs repair and replacement work orders. Monthly payments amounting to $55,000 were also paid to Fan in relation to the air-conditioning maintenance term contract.Fan, 43, former director of engineering of Crowne Plaza, was also charged for his role in the scam. He earlier pleaded guilty to three charges – the two aforementioned counts of conspiracy for an agent to accept an advantage, and one of agent soliciting an advantage, contrary to Section 9(1)(b) of the POBO. His sentence was also adjourned to January 29.Crowne Plaza had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Paggie Lee, assisted by ICAC officer Aggie Lo.

Back To Top