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Feb 2025$10m Housing Authority loans fraud syndicate head absconded for 20 years charged by ICACIn late 2003, the ICAC smashed a fraud syndicate which recruited individuals to defraud the Housing Authority (HA) of interest-free home assistance loans totalling over $10 million and three banks of mortgage loans in a total sum of over $5 million by falsifying the occupations and incomes of dummy applicants, resulting in the prosecution of over 30 persons, including backbone members of the syndicate and dummy applicants. The head of the syndicate, who had been wanted by the ICAC since 2004 after jumping bail, was charged upon returning to Hong Kong. A court mention was conducted in the Eastern Magistrates’ Courts this afternoon (February 7).Shiu Kwok-piu, 65, unemployed, was yesterday (February 6) charged with four counts of conspiracy to defraud, contrary to the Common Law. Principal Magistrate Mr Don So Man-lung adjourned the case to tomorrow morning (February 8) for mention.The alleged offences took place between January 2001 and October 2003. At the material time, the HA introduced the Home Assistance Loan Scheme (the Scheme, formerly known as the Home Purchase Loan Scheme) to help eligible families or single persons to buy flats of their own. The Scheme was terminated in July 2024.Applicants of the Scheme were required to submit their employment and income proofs to support their capability of repaying the loans and that their incomes did not exceed the upper limits. Under the Scheme, each single-person applicant could obtain an interest-free loan of up to $330,000 as down payment, while the maximum amount of the interest-free loan released to each family-based applicant was $660,000. Apart from applying for an interest-free loan from the HA, an applicant could also apply for a mortgage loan from a bank.One of the charges alleges that Shiu had conspired with the syndicate members and 36 dummy applicants to defraud the HA to approve the applications made by the dummy applicants under the Scheme and to release interest-free loans to them. Interest-free loans in relation to the 36 applications amounted to over $10 million.Three other charges allege that Shiu had conspired with the syndicate members and 10 of the dummy applicants to defraud The Bank of East Asia, Limited, Standard Chartered Bank (Hong Kong) Limited and Shanghai Commercial Bank Limited to approve and release mortgage loans totallling over $5 million.In the course of making applications with the HA and the three banks, Shiu and the co-conspirators had allegedly submitted false employment contracts and monthly income proofs to falsify the employment and incomes of the applicants.At that time, the ICAC had received a corruption complaint, alleging that a syndicate had conspired together to offer advantages to individuals including property and insurance agents in obtaining HA loans by deception. Investigation revealed that persons implicated in the scam had falsely stated that the dummy applicants were employed by various companies made up by them and falsified their incomes to facilitate their applications for loans from the HA and various banks.Over 30 individuals, including backbone members of the syndicate, dummy applicants, property vendors and agents, etc. were subsequently charged by the ICAC. The defendants, convicted of fraud, using false instruments and other related offences, received sentences up to 27 months in jail. The ICAC also administered formal caution to various individuals implicated in the scam.The HA and the three banks concerned rendered full assistance to the ICAC during its investigation.The prosecution was today represented by ICAC officer Tim Lam. 05
Feb 2025Two then employees of DSD’s contractor charged by ICAC with fraud over $6.3m sewage treatment facilitates maintenance ordersTwo then project managers of a contractor of the Drainage Services Department (DSD) were charged by the ICAC yesterday (February 4) for allegedly making various false representations that they had obtained the required number of quotations to deceive the contractor into awarding over 30 maintenance orders for sewage treatment facilities in the total sum of over $6.3 million to three subcontractors.Yip Hing-fai, 45; and Wong Chun-tung, 43, both then project managers of ATAL Engineering Limited (ATAL), were charged with two counts and one count of fraud, contrary to section 16A of the Theft Ordinance, respectively. They were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (February 6) for mention. The prosecution will later make an application for transferring the case to the District Court for plea.At the material time, ATAL was a contractor of the DSD responsible for the operation and maintenance of sewage treatment facilities at various districts in Hong Kong and two sewage treatment works. The two defendants oversaw the relevant maintenance works. When conducting a tendering exercise, they were required to obtain at least two quotations from subcontractors, record on a quotation analysis report the relevant prices quoted, and submit the report with assessment and recommendation to the company for endorsement.It is alleged that between April 2017 and August 2021, Yip had falsely represented to ATAL that 18 quotation analysis reports were genuine, and with intent to defraud, induced ATAL to award the relevant maintenance orders in the sum of over $4.7 million to two subcontractors.Between February 2019 and November 2020, Wong had allegedly induced ATAL to award 13 maintenance orders in the total sum of over $1.6 million to another subcontractor by similar fraudulent means.The ICAC investigation stemmed from a corruption complaint. Enquiries revealed that a number of subcontractors listed on the quotation analysis reports had not provided the quotations concerned.The DSD and ATAL had rendered full assistance to the ICAC during its investigation into the case. 04
Feb 2025Three site team leaders charged by ICAC admit accepting bribes of $880,000 from Third Runway Project’s workersThree then site team leaders of a sub-contractor of the Third Runway Project of the Hong Kong International Airport (Third Runway Project), charged by the ICAC in separate cases, today (February 4) admitted that they had accepted bribes totalling about $880,000 from over 80 fellow workers for securing their employment. One of the trio who instructed workers to tell the ICAC that they had not paid bribes also pleaded guilty to perversion.An ICAC spokesperson notes that the Commission has zero tolerance for corruption. If construction workers are asked to pay bribes in exchange for their employment, they should reject and report to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366.The defendants were Tang Kwok-leung, 50; He Yuchuan, 57; and Ye Zhifu, 57; all then site team leaders of MLife Engineering Limited (MEL). At the material time, MEL was a sub-contractor of the Third Runway Project responsible for recruiting construction workers to conduct various works. The trio led fellow workers to work at the project’s construction site and had the authority to assign work to workers. MEL did not allow any employees to solicit or accept any advantages from other employees for assisting the latter to secure their employment with the company.At the District Court, Tang today pleaded guilty to three charges – two of conspiracy for agents to accept advantages, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance; and one of conspiracy to do an act tending and intended to pervert the course of public justice, contrary to the Common Law and section 159A of the Crimes Ordinance. Tang was remanded in custody of the Correctional Services Department while his case was adjourned to March 18 for sentence.The court heard that between June 2020 and March 2021, Tang had instructed two other site team leaders and other construction workers to accept bribes of $40 to $400 per working day, totalling about $700,000, from around 80 carpenters, general workers, riggers and electrical workers. The ICAC investigation revealed that the workers worried about losing their jobs and paid bribes to Tang reluctantly.In the course of the ICAC investigation, Tang also conspired with one of the site team leaders to instruct some workers to make false statements to ICAC officers by saying that they had not paid any bribes to Tang or other individuals.He, who was charged in a separate case, today pleaded guilty at the West Kowloon Magistrates’ Courts to six counts of agent accepting an advantage. Between September 2020 and January 2022, He had demanded bribes ranging from $100 to $200 per working day from four carpenters under his supervision.The four workers paid bribes to He reluctantly as they believed that they would have been terminated if they did not accede to He’s solicitation. As a result, He accepted bribes totalling about $160,000 from the four workers. The case was adjourned to February 26 for sentence and He was allowed bail.Chow Kwai-fai, 50, another then MEL site team leader charged in the case, today pleaded not guilty to a bribery charge and a blackmail charge. His case was set for trial on March 26.In the third case, Ye pleaded guilty at the West Kowloon Magistrates’ Courts to four counts of agent accepting an advantage, and was granted bail until February 18 for sentence. Ye admitted that he had accepted bribes, namely over $20,000 and six cartons of cigarettes, from three carpenters between February and June 2022.The Airport Authority Hong Kong, the relevant main contractor SAPR JV and MEL rendered full assistance to the ICAC during its investigation into the cases.The prosecution was today represented by Senior Public Prosecutor Mickey Fung and ICAC officers Woody Cheng, Lawrence Wong and Fung Lee respectively in the three cases. 03
Feb 2025Listed company $200m ‘backdoor listing’ conspiracy to defraud case: Duo jailed for 34 and 37 months, ICAC files confiscation order applicationA then substantial shareholder of a listed company and its then chairman, charged by the ICAC and convicted after trial, were today (February 3) sentenced to 34 months and 37 months in jail respectively at the District Court for conspiring with a businessman to defraud The Stock Exchange of Hong Kong Limited (SEHK), the listed company and its board of directors and shareholders by concealing a secret “backdoor listing” agreement in a capital raising exercise involving illicit payments of over $200 million. The ICAC had already filed with the court an application for confiscating the crime proceeds concerned.Chim Pui-chung, 78, then substantial shareholder of Asia Resources Holdings Limited (Asia Resources), was sentenced to 34 months’ imprisonment; Ricky Chim Kim-lun, 55, then chairman of Asia Resources, received a jail term of 37 months. The duo were both disqualified from being company directors for three years. They were earlier found guilty of two counts of conspiracy to defraud, contrary to the Common Law.Wong Poe-lai, 68, then employee of businessman Ma Zhonghong, also implicated in the present case, received a jail term of 24 months. She was convicted of one count of dealing with property known or reasonably believed to represent proceeds of an indictable offence (commonly known as money laundering), contrary to section 25(1) of the Organized and Serious Crimes Ordinance.In sentencing, Judge Mr Ernest Lin Kam-hung reprimanded the defendants for undermining Hong Kong’s reputation as a financial centre and making an adverse impact on the monitoring mechanism of the city’s financial system. The Judge noted that Chim Pui-chung was the instigator of the scam while Ricky Chim had abused his official capacity and the trust placed in him by the board of directors of the listed company and the public. While the duo were equally liable, the Judge took a start point of 48 months’ imprisonment. After considering various mitigating factors, their jail terms were reduced to 34 months and 37 months respectively.An ICAC spokesperson noted that the Commission would continue its close collaboration with financial regulators to combat corruption and related crimes involving listed companies to uphold integrity of the Hong Kong financial market. The ICAC had already filed an application for confiscation order with the District Court and would spare no effort in recovering the crime proceeds concerned.Meanwhile, the warrant for the arrest of businessman Ma Zhonghong, issued earlier by the District Court upon ICAC’s application, is still in effect. Ma was charged with two counts of conspiracy to defraud and one count of money laundering. Ma has been wanted by the ICAC after he failed to attend court on October 25, 2022.The present case stemmed from a corruption complaint referred to the ICAC by the Securities and Futures Commission (SFC). Upon completion of the ICAC investigation, four individuals taking part in the secret “backdoor listing” scheme were charged with conspiracy to defraud and money laundering.At the material time, Asia Resources was listed on the Main Board of the SEHK. After Chim Pui-chung became a substantial shareholder of Asia Resources in mid-October 2008, his son, Ricky Chim, was appointed as an executive director of Asia Resources on the following day, and served as chairman of its board of directors between December 19, 2008 and December 11, 2014.The court heard that in July 2013, Chim Pui-chung and Ricky Chim negotiated with Ma in private a “backdoor listing” agreement selling the control of Asia Resources to Ma. On the basis that the entire 100 per cent shareholding of Asia Resources would cost $300 million, the trio made an agreement for Ma to pay Chim Pui-chung a sum of about $210 million to control 70 to 75 per cent of the entire issued share capital of Asia Resources (the “backdoor listing” agreement).In order to execute the “backdoor listing” agreement, Ricky Chim, as the chairman of Asia Resources, chaired two board meetings in late July and early August 2013. At the meetings, directors of Asia Resources resolved and approved to proceed with the placing of new shares and the issuance of convertible notes to raise funds of over $550 million (capital-raising exercise). Ricky Chim, who voted on both occasions, declared that he did not have any interest in the capital-raising exercise and he had never disclosed the “backdoor listing” agreement to Asia Resources. The placing of new shares in the capital-raising exercise was completed in late July 2013.In mid-August and mid-September 2013, Asia Resources respectively published an announcement and a circular in relation to the issuance of convertible notes in the capital-raising exercise, stating that no directors and shareholders had a material interest in the issuance of convertible notes, and no shareholders were required to abstain from voting in the special general meeting concerned. At the special general meeting held on October 3, 2013, Chim Pui-chung voted for the issuance of convertible notes. The resolution was eventually passed by shareholders.The ICAC enquiries revealed that Chim Pui-chung received a total sum of $169 million from Ma pursuant to the “backdoor listing” agreement about a month after Asia Resources approved of the capital-raising exercise.Chim Pui-chung and Ricky Chim had concealed from the SEHK the purpose of the capital-raising exercise, which was to increase the entire issued share capital of Asia Resources, thereby facilitating the execution of the “backdoor listing” agreement, causing the SEHK to approve the publication of the announcements and circulars in relation to the capital-raising exercise by Asia Resources, the court heard.Between October 2013 and January 2014, co-defendant Wong followed the instruction of her employer, Ma, to deal with proceeds of indictable offence, namely convertible notes issued by Asia Resources in the principal amount of $42 million.The SEHK and the SFC rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutors Derek Wong and Ivan Shiu, assisted by ICAC officer Vivian Poon. 23
Jan 2025Ex-bank employee charged by ICAC admits bribery and fraud over client referrals to broker for mortgage loan applications with another bankA former employee of a bank, charged by the ICAC, today (January 23) admitted at the Kowloon City Magistrates’ Courts that she had accepted a bribe for referring a client to the proprietor of a lending referral agency without permission and arranged clients to apply for mortgage loans with another bank to defraud the latter of referral fees.Amy Chow Bik-sum, 49, former assistant customer service manager of OCBC Bank (Hong Kong) Limited (formerly known as OCBC Wing Hang Bank Limited) (OCBC), today pleaded guilty to one count of conspiracy for an agent to accept an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance; and one count of fraud, contrary to section 16A of the Theft Ordinance.Acting Principal Magistrate Mr Ko Wai-hung adjourned the case to February 10 for sentence, pending Chow’s background report. Chow was remanded in the custody of the Correctional Services Department.Co-defendants Yip Man-yee, 46, proprietor of The Capital Property (TCP); and Mak Miu-ling, 56, former deputy manager of Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia)), today pleaded not guilty to the charges. The case was scheduled for March 7 for a pre-trial review.At the material time, Chow was an assistant customer service manager of OCBC posted to its Tsim Sha Tsui branch while Mak was a deputy manager of ICBC (Asia) posted to its Ho Man Tin branch. The respective duties of Chow and Mak included handling of residential mortgage applications. Both banks would release agency referral fees to their appointed mortgage intermediaries for successful residential mortgage applications, but the relevant staff handling those applications, including Chow and Mak, were not entitled to any commissions or agency referral fees.Cybernetics Property Mortgage Limited (CPM) was an appointed mortgage intermediary of ICBC (Asia). For each successful mortgage application jointly procured with an agent, CPM would release 95 per cent of the agency referral fee released by ICBC (Asia) as a broker fee to the agent. As an agent of CPM in mortgage referral business, TCP was entitled to receive a broker fee from CPM for each successful mortgage application referred to ICBC (Asia).Chow admitted that between August 2019 and August 2021, she had referred two OCBC clients to then ICBC (Asia) employee, Mak, and the proprietor of TCP, Yip, for arranging mortgage loan applications with ICBC (Asia) without asking for OCBC’s permission.Chow further admitted that she had falsely represented to ICBC (Asia) that one of the two clients was referred by CPM to deceive ICBC (Asia) into paying a mortgage loan referral fee of $18,000 to CPM. She had also accepted a bribe of over $16,000 from Yip for referring the second client to TCP.TCP had received two broker fees of about $17,000 and about $32,000 respectively from CPM for referring the two clients, the court heard.OCBC did not allow its employees to refer mortgage loan applications of its clients to other individuals or institutions, and prohibited its employees from soliciting or accepting advantages from others in relation to OCBC’s business.OCBC, ICAC (Asia) and CPM rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Gary Chan.
Feb 2025$10m Housing Authority loans fraud syndicate head absconded for 20 years charged by ICACIn late 2003, the ICAC smashed a fraud syndicate which recruited individuals to defraud the Housing Authority (HA) of interest-free home assistance loans totalling over $10 million and three banks of mortgage loans in a total sum of over $5 million by falsifying the occupations and incomes of dummy applicants, resulting in the prosecution of over 30 persons, including backbone members of the syndicate and dummy applicants. The head of the syndicate, who had been wanted by the ICAC since 2004 after jumping bail, was charged upon returning to Hong Kong. A court mention was conducted in the Eastern Magistrates’ Courts this afternoon (February 7).Shiu Kwok-piu, 65, unemployed, was yesterday (February 6) charged with four counts of conspiracy to defraud, contrary to the Common Law. Principal Magistrate Mr Don So Man-lung adjourned the case to tomorrow morning (February 8) for mention.The alleged offences took place between January 2001 and October 2003. At the material time, the HA introduced the Home Assistance Loan Scheme (the Scheme, formerly known as the Home Purchase Loan Scheme) to help eligible families or single persons to buy flats of their own. The Scheme was terminated in July 2024.Applicants of the Scheme were required to submit their employment and income proofs to support their capability of repaying the loans and that their incomes did not exceed the upper limits. Under the Scheme, each single-person applicant could obtain an interest-free loan of up to $330,000 as down payment, while the maximum amount of the interest-free loan released to each family-based applicant was $660,000. Apart from applying for an interest-free loan from the HA, an applicant could also apply for a mortgage loan from a bank.One of the charges alleges that Shiu had conspired with the syndicate members and 36 dummy applicants to defraud the HA to approve the applications made by the dummy applicants under the Scheme and to release interest-free loans to them. Interest-free loans in relation to the 36 applications amounted to over $10 million.Three other charges allege that Shiu had conspired with the syndicate members and 10 of the dummy applicants to defraud The Bank of East Asia, Limited, Standard Chartered Bank (Hong Kong) Limited and Shanghai Commercial Bank Limited to approve and release mortgage loans totallling over $5 million.In the course of making applications with the HA and the three banks, Shiu and the co-conspirators had allegedly submitted false employment contracts and monthly income proofs to falsify the employment and incomes of the applicants.At that time, the ICAC had received a corruption complaint, alleging that a syndicate had conspired together to offer advantages to individuals including property and insurance agents in obtaining HA loans by deception. Investigation revealed that persons implicated in the scam had falsely stated that the dummy applicants were employed by various companies made up by them and falsified their incomes to facilitate their applications for loans from the HA and various banks.Over 30 individuals, including backbone members of the syndicate, dummy applicants, property vendors and agents, etc. were subsequently charged by the ICAC. The defendants, convicted of fraud, using false instruments and other related offences, received sentences up to 27 months in jail. The ICAC also administered formal caution to various individuals implicated in the scam.The HA and the three banks concerned rendered full assistance to the ICAC during its investigation.The prosecution was today represented by ICAC officer Tim Lam. 05
Feb 2025Two then employees of DSD’s contractor charged by ICAC with fraud over $6.3m sewage treatment facilitates maintenance ordersTwo then project managers of a contractor of the Drainage Services Department (DSD) were charged by the ICAC yesterday (February 4) for allegedly making various false representations that they had obtained the required number of quotations to deceive the contractor into awarding over 30 maintenance orders for sewage treatment facilities in the total sum of over $6.3 million to three subcontractors.Yip Hing-fai, 45; and Wong Chun-tung, 43, both then project managers of ATAL Engineering Limited (ATAL), were charged with two counts and one count of fraud, contrary to section 16A of the Theft Ordinance, respectively. They were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (February 6) for mention. The prosecution will later make an application for transferring the case to the District Court for plea.At the material time, ATAL was a contractor of the DSD responsible for the operation and maintenance of sewage treatment facilities at various districts in Hong Kong and two sewage treatment works. The two defendants oversaw the relevant maintenance works. When conducting a tendering exercise, they were required to obtain at least two quotations from subcontractors, record on a quotation analysis report the relevant prices quoted, and submit the report with assessment and recommendation to the company for endorsement.It is alleged that between April 2017 and August 2021, Yip had falsely represented to ATAL that 18 quotation analysis reports were genuine, and with intent to defraud, induced ATAL to award the relevant maintenance orders in the sum of over $4.7 million to two subcontractors.Between February 2019 and November 2020, Wong had allegedly induced ATAL to award 13 maintenance orders in the total sum of over $1.6 million to another subcontractor by similar fraudulent means.The ICAC investigation stemmed from a corruption complaint. Enquiries revealed that a number of subcontractors listed on the quotation analysis reports had not provided the quotations concerned.The DSD and ATAL had rendered full assistance to the ICAC during its investigation into the case. 04
Feb 2025Three site team leaders charged by ICAC admit accepting bribes of $880,000 from Third Runway Project’s workersThree then site team leaders of a sub-contractor of the Third Runway Project of the Hong Kong International Airport (Third Runway Project), charged by the ICAC in separate cases, today (February 4) admitted that they had accepted bribes totalling about $880,000 from over 80 fellow workers for securing their employment. One of the trio who instructed workers to tell the ICAC that they had not paid bribes also pleaded guilty to perversion.An ICAC spokesperson notes that the Commission has zero tolerance for corruption. If construction workers are asked to pay bribes in exchange for their employment, they should reject and report to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366.The defendants were Tang Kwok-leung, 50; He Yuchuan, 57; and Ye Zhifu, 57; all then site team leaders of MLife Engineering Limited (MEL). At the material time, MEL was a sub-contractor of the Third Runway Project responsible for recruiting construction workers to conduct various works. The trio led fellow workers to work at the project’s construction site and had the authority to assign work to workers. MEL did not allow any employees to solicit or accept any advantages from other employees for assisting the latter to secure their employment with the company.At the District Court, Tang today pleaded guilty to three charges – two of conspiracy for agents to accept advantages, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance; and one of conspiracy to do an act tending and intended to pervert the course of public justice, contrary to the Common Law and section 159A of the Crimes Ordinance. Tang was remanded in custody of the Correctional Services Department while his case was adjourned to March 18 for sentence.The court heard that between June 2020 and March 2021, Tang had instructed two other site team leaders and other construction workers to accept bribes of $40 to $400 per working day, totalling about $700,000, from around 80 carpenters, general workers, riggers and electrical workers. The ICAC investigation revealed that the workers worried about losing their jobs and paid bribes to Tang reluctantly.In the course of the ICAC investigation, Tang also conspired with one of the site team leaders to instruct some workers to make false statements to ICAC officers by saying that they had not paid any bribes to Tang or other individuals.He, who was charged in a separate case, today pleaded guilty at the West Kowloon Magistrates’ Courts to six counts of agent accepting an advantage. Between September 2020 and January 2022, He had demanded bribes ranging from $100 to $200 per working day from four carpenters under his supervision.The four workers paid bribes to He reluctantly as they believed that they would have been terminated if they did not accede to He’s solicitation. As a result, He accepted bribes totalling about $160,000 from the four workers. The case was adjourned to February 26 for sentence and He was allowed bail.Chow Kwai-fai, 50, another then MEL site team leader charged in the case, today pleaded not guilty to a bribery charge and a blackmail charge. His case was set for trial on March 26.In the third case, Ye pleaded guilty at the West Kowloon Magistrates’ Courts to four counts of agent accepting an advantage, and was granted bail until February 18 for sentence. Ye admitted that he had accepted bribes, namely over $20,000 and six cartons of cigarettes, from three carpenters between February and June 2022.The Airport Authority Hong Kong, the relevant main contractor SAPR JV and MEL rendered full assistance to the ICAC during its investigation into the cases.The prosecution was today represented by Senior Public Prosecutor Mickey Fung and ICAC officers Woody Cheng, Lawrence Wong and Fung Lee respectively in the three cases. 03
Feb 2025Listed company $200m ‘backdoor listing’ conspiracy to defraud case: Duo jailed for 34 and 37 months, ICAC files confiscation order applicationA then substantial shareholder of a listed company and its then chairman, charged by the ICAC and convicted after trial, were today (February 3) sentenced to 34 months and 37 months in jail respectively at the District Court for conspiring with a businessman to defraud The Stock Exchange of Hong Kong Limited (SEHK), the listed company and its board of directors and shareholders by concealing a secret “backdoor listing” agreement in a capital raising exercise involving illicit payments of over $200 million. The ICAC had already filed with the court an application for confiscating the crime proceeds concerned.Chim Pui-chung, 78, then substantial shareholder of Asia Resources Holdings Limited (Asia Resources), was sentenced to 34 months’ imprisonment; Ricky Chim Kim-lun, 55, then chairman of Asia Resources, received a jail term of 37 months. The duo were both disqualified from being company directors for three years. They were earlier found guilty of two counts of conspiracy to defraud, contrary to the Common Law.Wong Poe-lai, 68, then employee of businessman Ma Zhonghong, also implicated in the present case, received a jail term of 24 months. She was convicted of one count of dealing with property known or reasonably believed to represent proceeds of an indictable offence (commonly known as money laundering), contrary to section 25(1) of the Organized and Serious Crimes Ordinance.In sentencing, Judge Mr Ernest Lin Kam-hung reprimanded the defendants for undermining Hong Kong’s reputation as a financial centre and making an adverse impact on the monitoring mechanism of the city’s financial system. The Judge noted that Chim Pui-chung was the instigator of the scam while Ricky Chim had abused his official capacity and the trust placed in him by the board of directors of the listed company and the public. While the duo were equally liable, the Judge took a start point of 48 months’ imprisonment. After considering various mitigating factors, their jail terms were reduced to 34 months and 37 months respectively.An ICAC spokesperson noted that the Commission would continue its close collaboration with financial regulators to combat corruption and related crimes involving listed companies to uphold integrity of the Hong Kong financial market. The ICAC had already filed an application for confiscation order with the District Court and would spare no effort in recovering the crime proceeds concerned.Meanwhile, the warrant for the arrest of businessman Ma Zhonghong, issued earlier by the District Court upon ICAC’s application, is still in effect. Ma was charged with two counts of conspiracy to defraud and one count of money laundering. Ma has been wanted by the ICAC after he failed to attend court on October 25, 2022.The present case stemmed from a corruption complaint referred to the ICAC by the Securities and Futures Commission (SFC). Upon completion of the ICAC investigation, four individuals taking part in the secret “backdoor listing” scheme were charged with conspiracy to defraud and money laundering.At the material time, Asia Resources was listed on the Main Board of the SEHK. After Chim Pui-chung became a substantial shareholder of Asia Resources in mid-October 2008, his son, Ricky Chim, was appointed as an executive director of Asia Resources on the following day, and served as chairman of its board of directors between December 19, 2008 and December 11, 2014.The court heard that in July 2013, Chim Pui-chung and Ricky Chim negotiated with Ma in private a “backdoor listing” agreement selling the control of Asia Resources to Ma. On the basis that the entire 100 per cent shareholding of Asia Resources would cost $300 million, the trio made an agreement for Ma to pay Chim Pui-chung a sum of about $210 million to control 70 to 75 per cent of the entire issued share capital of Asia Resources (the “backdoor listing” agreement).In order to execute the “backdoor listing” agreement, Ricky Chim, as the chairman of Asia Resources, chaired two board meetings in late July and early August 2013. At the meetings, directors of Asia Resources resolved and approved to proceed with the placing of new shares and the issuance of convertible notes to raise funds of over $550 million (capital-raising exercise). Ricky Chim, who voted on both occasions, declared that he did not have any interest in the capital-raising exercise and he had never disclosed the “backdoor listing” agreement to Asia Resources. The placing of new shares in the capital-raising exercise was completed in late July 2013.In mid-August and mid-September 2013, Asia Resources respectively published an announcement and a circular in relation to the issuance of convertible notes in the capital-raising exercise, stating that no directors and shareholders had a material interest in the issuance of convertible notes, and no shareholders were required to abstain from voting in the special general meeting concerned. At the special general meeting held on October 3, 2013, Chim Pui-chung voted for the issuance of convertible notes. The resolution was eventually passed by shareholders.The ICAC enquiries revealed that Chim Pui-chung received a total sum of $169 million from Ma pursuant to the “backdoor listing” agreement about a month after Asia Resources approved of the capital-raising exercise.Chim Pui-chung and Ricky Chim had concealed from the SEHK the purpose of the capital-raising exercise, which was to increase the entire issued share capital of Asia Resources, thereby facilitating the execution of the “backdoor listing” agreement, causing the SEHK to approve the publication of the announcements and circulars in relation to the capital-raising exercise by Asia Resources, the court heard.Between October 2013 and January 2014, co-defendant Wong followed the instruction of her employer, Ma, to deal with proceeds of indictable offence, namely convertible notes issued by Asia Resources in the principal amount of $42 million.The SEHK and the SFC rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutors Derek Wong and Ivan Shiu, assisted by ICAC officer Vivian Poon. 23
Jan 2025Ex-bank employee charged by ICAC admits bribery and fraud over client referrals to broker for mortgage loan applications with another bankA former employee of a bank, charged by the ICAC, today (January 23) admitted at the Kowloon City Magistrates’ Courts that she had accepted a bribe for referring a client to the proprietor of a lending referral agency without permission and arranged clients to apply for mortgage loans with another bank to defraud the latter of referral fees.Amy Chow Bik-sum, 49, former assistant customer service manager of OCBC Bank (Hong Kong) Limited (formerly known as OCBC Wing Hang Bank Limited) (OCBC), today pleaded guilty to one count of conspiracy for an agent to accept an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance; and one count of fraud, contrary to section 16A of the Theft Ordinance.Acting Principal Magistrate Mr Ko Wai-hung adjourned the case to February 10 for sentence, pending Chow’s background report. Chow was remanded in the custody of the Correctional Services Department.Co-defendants Yip Man-yee, 46, proprietor of The Capital Property (TCP); and Mak Miu-ling, 56, former deputy manager of Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia)), today pleaded not guilty to the charges. The case was scheduled for March 7 for a pre-trial review.At the material time, Chow was an assistant customer service manager of OCBC posted to its Tsim Sha Tsui branch while Mak was a deputy manager of ICBC (Asia) posted to its Ho Man Tin branch. The respective duties of Chow and Mak included handling of residential mortgage applications. Both banks would release agency referral fees to their appointed mortgage intermediaries for successful residential mortgage applications, but the relevant staff handling those applications, including Chow and Mak, were not entitled to any commissions or agency referral fees.Cybernetics Property Mortgage Limited (CPM) was an appointed mortgage intermediary of ICBC (Asia). For each successful mortgage application jointly procured with an agent, CPM would release 95 per cent of the agency referral fee released by ICBC (Asia) as a broker fee to the agent. As an agent of CPM in mortgage referral business, TCP was entitled to receive a broker fee from CPM for each successful mortgage application referred to ICBC (Asia).Chow admitted that between August 2019 and August 2021, she had referred two OCBC clients to then ICBC (Asia) employee, Mak, and the proprietor of TCP, Yip, for arranging mortgage loan applications with ICBC (Asia) without asking for OCBC’s permission.Chow further admitted that she had falsely represented to ICBC (Asia) that one of the two clients was referred by CPM to deceive ICBC (Asia) into paying a mortgage loan referral fee of $18,000 to CPM. She had also accepted a bribe of over $16,000 from Yip for referring the second client to TCP.TCP had received two broker fees of about $17,000 and about $32,000 respectively from CPM for referring the two clients, the court heard.OCBC did not allow its employees to refer mortgage loan applications of its clients to other individuals or institutions, and prohibited its employees from soliciting or accepting advantages from others in relation to OCBC’s business.OCBC, ICAC (Asia) and CPM rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Gary Chan.