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May 2025Four audit staff charged by HK ICAC for alleged conspiracy to defraud over listing of Macao construction firm by false accountingFour audit and consultant staff of an accounting firm and its sister company implicated in a corruption investigation by the Hong Kong ICAC were charged on May 2 for allegedly conspiring together to defraud the Hong Kong Exchanges and Clearing Limited (HKEX) to approve the listing application of a Macao construction firm by preparing false accountants’ report showing its business growth. They were also suspected of conspiring with three relatives to conceal their identities in the subscription for placing shares of the construction firm in its initial public offering (IPO). The seven defendants will appear at the Eastern Magistrates’ Courts tomorrow (May 7) for mention.The four audit and consultant staff, aged between 36 and 46, jointly face one count of conspiracy to defraud, contrary to Common Law. At the material time, Lam Shui-mei and Siu Yuen-shan were the audit principal and audit manager of Wellink CPA Limited (Wellink CPA) respectively; Chan Wai-lun and Wong Yat-chung were respectively the associate and manager of Wellink Corporate Advisory Limited (Wellink Corporate Advisory), a sister company of Wellink CPA. Siu Yuen-shan and Wong Yat-chung were both certified public accountants.The four defendants further face one count of conspiracy to defraud with three relatives, aged between 46 and 50, namely the husband and brother-in-law of Lam Shui-mei, Li Man-heung and Li Kin-chit; and an elder sister of Wong Yat-chung, Wong Wing-man.The seven defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (May 7) for mention. The prosecution will apply for transferring the case to the District Court for plea.At the material time, Huarchi Global Group Holdings Limited (Huarchi Global), was a Macao-based construction company. In October 2016, Huarchi Global engaged Wellink CPA to be its reporting accountant for preparing the accountants’ report of Huarchi Global to facilitate its listing application on the main board of the HKEX. The four audit and consultant staff were assigned to prepare the report and perform the audit work on the financial position of Huarchi Global between January 2016 and April 2019.In October 2019, the listing application of Huarchi Global was approved by the HKEX. An IPO was launched in November of the same year and AFG Securities Limited (AFG Securities) was one of the placing agents responsible for its shares subscription. Later in September 2023, Huarchi Global was delisted.One of the charges alleges that between October 2016 and November 2019, the four audit and consultant staff had conspired with the chairman of Huarchi Global and others to defraud the director of Wellink CPA and the HKEX by falsely representing that the accountants’ report prepared by them accurately reflected the financial position of Huarchi Global, causing the director of Wellink CPA to endorse and submit the report to the HKEX, and the HKEX to approve the main board listing application of Huarchi Global.It is also alleged that between October 2019 and April 2021, the four audit and consultant staff had conspired with their three relatives charged in the present case, the chairman of Huarchi Global and others to defraud AFG Securities, causing it to allot a total of 5,888,000 placing shares of Huarchi Global to individuals including Li Kin-chit and Wong Wing-man.False representations were allegedly made that Li Kin-chit and Wong Wing-man were the ultimate beneficial owners of the allocated placing shares of Huarchi Global, independent of Huarchi Global, not funded by Huarchi Global or that they were not accustomed to take instructions from Huarchi Global in relation to the acquisition or disposal of its placing shares.The investigation, which stemmed from a corruption complaint filed with the Hong Kong ICAC, led to a joint operation mounted by the Commission, the Accounting and Financial Reporting Council (AFRC, formerly known as the Financial Reporting Council) and the Commission Against Corruption of Macao (CACC) in November 2021. During the operation, the offices of Wellink CPA and Wellink Corporate Advisory were searched by the Hong Kong ICAC and the AFRC and individuals implicated in the present case were arrested, while the CACC searched the Macao office of the construction firm concerned.Enquiries revealed that the four audit and consultant staff had allegedly falsified the accountants’ report of Huarchi Global showing its steady business growth to facilitate its listing application on the main board of the HKEX. It is suspected that the chairman of Huarchi Global had subsequently offered a reward of $1.5 million to the audit and consultant staff and their relatives for subscribing for the placing shares of Huarchi Global in its IPO.As the bribery inquiries are still ongoing, the ICAC would not rule out laying additional charges against the individuals concerned or prosecuting others after seeking further legal advice from the Department of Justice.The Hong Kong ICAC and the AFRC entered into a Memorandum of Understanding in 2021 to enhance collaboration in fighting against corruption, illicit activities and malpractices. While the present case was prompted by the maiden joint operation of the Hong Kong ICAC and the AFRC, the two agencies will continue to maintain close collaboration to foster the audit quality and integrity of financial reporting by listed entities and their auditors and the integrity of the financial market. On the corruption prevention and educational front, the two agencies have been working closely with the relevant professional bodies, such as providing corruption prevention training and advice for the industry, to enhance their integrity management and corruption prevention awareness.The AFRC and the CACC rendered full assistance to the Hong Kong ICAC during its investigation into the case. 30
Apr 2025Ex-manager of beverage company charged by ICAC guilty of concealing conflict of interest in advertisements worth $1.9mA former marketing manager of a beverage company, charged by the ICAC, was today (April 30) convicted after trial at the District Court for deceiving the company into awarding various outdoor advertisement purchase orders worth totalling about $1.9 million by concealing his control of a vendor, and conspiring with a subordinate to use false quotations and inspection reports to mislead the company.Chan Wing-fung, 41, former manager of marketing department of Vitasoy International Holdings Limited (Vitasoy), was found guilty of three charges – two of conspiracy for agents to use documents with intent to deceive his principal, contrary to section 9(3) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance; and one of fraud, contrary to section 16A of the Theft Ordinance.Co-defendant Keung Tze-ping, 50, former outdoor visibility officer of marketing department of Vitasoy, earlier pleaded guilty to the two counts of conspiracy for agents to use documents with intent to deceive her principal.Deputy Judge Ms Ivy Chui Yee-mei adjourned the case to June 10 for sentence, pending the defendants’ background report. Chan was remanded in custody of the Correctional Services Department.Among other duties at the material time, Chan was responsible for approving the engagement of vendors for the merchandising team and outdoor advertising team of Vitasoy’s marketing department while Keung would assist Chan to obtain quotations from vendors. They were required to obtain at least two or three quotations, subject to the amount of a procurement exercise involved. As stipulated in the staff handbook of Vitasoy, all staff members were required to disclose any possible conflict of interest to Vitasoy and seek permission in writing prior to participating in any business which would possibly cause a conflict of interest.The ICAC investigation arose from a corruption complaint filed by Vitasoy following an internal audit conducted by the company. Enquiries revealed that in January 2016, Chan instructed his girlfriend to establish Why Creative Graphic Design House (Why Creative) to take up the orders from Vitasoy. Chan had never declared to Vitasoy his interest in Why Creative despite the fact that Why Creative was controlled by him.Between January 2016 and early October 2019, Chan awarded 39 outdoor advertisement purchase orders of Vitasoy which worth totalling about $1.9 million to Why Creative. Chan’s girlfriend transferred 40 per cent of the profit totalling about $650,000 to Chan according to their agreement.The court also heard that Chan had approved to pay a monthly fee of $36,000 to a vendor without the authorisation of his supervisor, falsely claiming that that the inspections were arranged on Vitasoy’s outdoor advertisements.When being asked by Vitasoy to submit the relevant quotations of the three vendors, including Why Creative, and the inspection reports, Chan conspired with subordinates, including Keung, to forge 30 sets of quotation documents purportedly issued by four vendors for Vitasoy’s examination, so as to mislead the company that the procurements had complied with the relevant policy. Meanwhile, they fabricated 38 sets of outdoor advertisement inspection reports to mislead Vitasoy that inspections were completed by the relevant vendor.ICAC investigation revealed that the four vendors had never issued the quotations concerned and the relevant vendor had not conducted the inspections mentioned in the inspection reports.Vitasoy has rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Sabrina See, assisted by ICAC officer Leo Fung. 29
Apr 2025Duty-free store duo charged by ICAC jailed for conspiracy to defraud over $12m inflated prices red wine purchasesTwo former senior executives of a duty-free chain store, charged by the ICAC with conspiracy to defraud, were today (April 29) sentenced at the District Court to jail terms of 57 months and 14 months respectively for concealing their conflicting interest in companies set up by them over purchase and resell of bottled red wine sourced from a French supplier by inflating the prices by $12 million.Au Tsz-kei, 71, former merchandising and buying director of Sky Connection Limited (Sky Connection), was sentenced to 57 months’ imprisonment. He was earlier found guilty of one count of conspiracy to defraud, contrary to the Common Law.Co-defendant Lau Shu-yin, 78, former general manager of Sky Connection, who earlier pleaded guilty to the offence, was today jailed for 14 months.In sentencing, Judge Mr Clement Lee Hing-nin remarked that he took a starting point of eight years’ imprisonment in the present case as the duo committed a premeditated crime spanning over six years involving a defrauded sum of over $1.2 million. Their sentences were reduced, having considered their mitigations, including the fact that they had both reached the age of 70 during the trial and the restitution of their personal gains to Sky Connection. Lau received a further reduction in his jail term in view of his guilty plea and his assistance rendered to the prosecution in the trial.The present case arose from a corruption complaint received by the ICAC in mid-2019. At the material time, Sky Connection sold duty-free goods under the business name “Free Duty”. The merchandising and buying department, headed by Au, used to source bottled red wine from a winery in France directly for sale at “Free Duty” shops.The court heard that since August 2004, the two defendants had arranged Sky Connection to place purchase orders with the French winery via Jetfair Development Limited (Jetfair) and Master Good Trading Limited (Master Good). Between August 2004 and May 2011, Sky Connection had placed 56 purchase orders incurring payments totalling over $26 million through Jetfair and Master Good. ICAC enquiries revealed that Jetfair and Master Good had actually sourced the 56 batches of bottled red wine from the French winery at over $14 million and resold them to Sky Connection at inflated prices, causing Sky Connection to make extra payments of over $12 million.The ICAC investigation also revealed that Master Good and Jetfair were in fact funded by individuals including Au and Lau. Lau and his daughter were respectively the sole shareholder-cum-director of Master Good and Jetfair. Sky Connection required its staff to declare any conflict of interest and prohibited them from engaging in any business which might have a conflict with the company. But Au and Lau had never disclosed to Sky Connection their associations with Master Good and Jetfair.In addition, Au and Lau each shared part of the generated profits in the scam under an agreement. Lau had earlier admitted that he had received $2 million in total.Sky Connection rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Mickey Fung, assisted by ICAC officer May Lam. 24
Apr 2025Six months’ jail for site team leader of Third Runway Project guilty of bribery and blackmailA site team leader of a sub-contractor of the Third Runway Project of the Hong Kong International Airport (Third Runway Project), charged by the ICAC, was today (April 24) sentenced to six months’ imprisonment at the West Kowloon Magistrates’ Courts after being convicted of accepting bribes totalling about $44,000 from a carpenter and blackmail.Chow Kwai-fai, 50, former site team leader of MLife Engineering Limited (MEL), was convicted of two charges, namely one count of agent accepting an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance, and one count of blackmail, contrary to section 23(1) of the Theft Ordinance.In sentencing, Magistrate Ms Vivian Ho Wai-han remarked that bribery is a serious crime, warranting a custodial sentence. The court also ordered Chow to pay MEL a restitution of about $44,000, equivalent to the amount of bribes he received in the present case.At the material time, MEL was a sub-contractor of the Third Runway Project responsible for recruiting construction workers to conduct various works. Chow led a team of carpenters 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.The court heard that between October 2020 and April 2021, Chow had requested a carpenter under his supervision to pay him a bribe of $350 per working day. Chow told the carpenter to quit the job had he refused to pay bribes. The carpenter believed that Chow would terminate him if he did not accede to Chow’s solicitation, and paid bribes totalling $44,000 to Chow reluctantly.Another team leader, He Yuchuan, 57, charged in the present case, earlier received a jail term of seven months after pleading guilty to six counts of agent accepting an advantage. He was also ordered to pay MEL a restitution of about $160,000, equivalent to the amount of bribes he received from four workers.The Airport Authority Hong Kong, the relevant main contractor SAPR JV and MEL rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Mickey Fung, and assisted by ICAC officer Lawrence Wong. 22
Apr 2025Ex-manager of fabric company charged by ICAC gets 30 months’ jail for $1m fraudulent orders and money launderingA former project manager of a fabric company, charged by the ICAC for making false representations to cause three customers to place orders worth totalling about $1 million with companies owned by his associates and laundering crime proceeds of about $720,000, was today (April 22) sentenced to 30 months’ imprisonment at the District Court.Li Ka-wing, 53, former project manager of Showtex Hong Kong Limited (Showtex HK), was today sentenced to 30 months’ imprisonment. He earlier pleaded guilty to a total of nine charges, namely three counts of fraud and one of attempted fraud, contrary to section 16A of the Theft Ordinance and section 159G of the Crimes Ordinance; as well as five counts of dealing with property known or 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, Deputy Judge Ms Amy Chan Wai-mun remarked that the present case was serious in nature. She reprimanded the defendant for orchestrating the fraudulent scheme, in breach of the trust that was placed on him.A co-defendant of the case, Zhao Bingguo, 42, operator of Maban Trading Co., Limited (Maban), earlier pleaded guilty to the aforesaid five counts of money laundering at the District Court and received a jail term of one year.Li was a project manager of Showtex HK responsible for sourcing business when the offences took place between June 2018 and April 2019. Showtex HK supplied flame retardant curtain fabrics, installed stage projection screen and provided event decoration services.The court heard that Li had made false representations to three customers of ShowtexHK, respectively claiming that Maban and another multimedia company were subcontractors of Showtex HK, dealt with the same factory with Showtex HK or Showtex HK was unable to provide relevant services, causing the three aforesaid customers to place orders with Maban or the multimedia company.The ICAC investigation arose from a corruption complaint. Enquires revealed that Maban and the multimedia company were not subcontractors of Showtex HK and had no dealings with Showtex HK or its factory. It was revealed that at the material time, the three customers had placed orders worth totalling about $1 million with Maban and the multimedia company.Inquiries revealed that although the three aforesaid customers placed orders with Maban and the multimedia company, Li arranged Showtex HK to provide some of the items in the orders through fraudulent means. Part of the payment of the orders made by the customers to Maban and the multimedia company were eventually deposited into the bank accounts of Li or his family members.Investigations also revealed that Zhao was the operator of Maban, which engaged in knife trading. Zhao and the operator of the aforesaid multimedia company were former employees of Showtex HK.Li and Zhao dealt with crime proceeds of about $720,000 in relation to the scheme via the bank account of Maban, the court was told.Showtex HK has rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Bernard Chung, assisted by ICAC officers Henry Cheung, Keith Yan and Ruby Ho.
May 2025Four audit staff charged by HK ICAC for alleged conspiracy to defraud over listing of Macao construction firm by false accountingFour audit and consultant staff of an accounting firm and its sister company implicated in a corruption investigation by the Hong Kong ICAC were charged on May 2 for allegedly conspiring together to defraud the Hong Kong Exchanges and Clearing Limited (HKEX) to approve the listing application of a Macao construction firm by preparing false accountants’ report showing its business growth. They were also suspected of conspiring with three relatives to conceal their identities in the subscription for placing shares of the construction firm in its initial public offering (IPO). The seven defendants will appear at the Eastern Magistrates’ Courts tomorrow (May 7) for mention.The four audit and consultant staff, aged between 36 and 46, jointly face one count of conspiracy to defraud, contrary to Common Law. At the material time, Lam Shui-mei and Siu Yuen-shan were the audit principal and audit manager of Wellink CPA Limited (Wellink CPA) respectively; Chan Wai-lun and Wong Yat-chung were respectively the associate and manager of Wellink Corporate Advisory Limited (Wellink Corporate Advisory), a sister company of Wellink CPA. Siu Yuen-shan and Wong Yat-chung were both certified public accountants.The four defendants further face one count of conspiracy to defraud with three relatives, aged between 46 and 50, namely the husband and brother-in-law of Lam Shui-mei, Li Man-heung and Li Kin-chit; and an elder sister of Wong Yat-chung, Wong Wing-man.The seven defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (May 7) for mention. The prosecution will apply for transferring the case to the District Court for plea.At the material time, Huarchi Global Group Holdings Limited (Huarchi Global), was a Macao-based construction company. In October 2016, Huarchi Global engaged Wellink CPA to be its reporting accountant for preparing the accountants’ report of Huarchi Global to facilitate its listing application on the main board of the HKEX. The four audit and consultant staff were assigned to prepare the report and perform the audit work on the financial position of Huarchi Global between January 2016 and April 2019.In October 2019, the listing application of Huarchi Global was approved by the HKEX. An IPO was launched in November of the same year and AFG Securities Limited (AFG Securities) was one of the placing agents responsible for its shares subscription. Later in September 2023, Huarchi Global was delisted.One of the charges alleges that between October 2016 and November 2019, the four audit and consultant staff had conspired with the chairman of Huarchi Global and others to defraud the director of Wellink CPA and the HKEX by falsely representing that the accountants’ report prepared by them accurately reflected the financial position of Huarchi Global, causing the director of Wellink CPA to endorse and submit the report to the HKEX, and the HKEX to approve the main board listing application of Huarchi Global.It is also alleged that between October 2019 and April 2021, the four audit and consultant staff had conspired with their three relatives charged in the present case, the chairman of Huarchi Global and others to defraud AFG Securities, causing it to allot a total of 5,888,000 placing shares of Huarchi Global to individuals including Li Kin-chit and Wong Wing-man.False representations were allegedly made that Li Kin-chit and Wong Wing-man were the ultimate beneficial owners of the allocated placing shares of Huarchi Global, independent of Huarchi Global, not funded by Huarchi Global or that they were not accustomed to take instructions from Huarchi Global in relation to the acquisition or disposal of its placing shares.The investigation, which stemmed from a corruption complaint filed with the Hong Kong ICAC, led to a joint operation mounted by the Commission, the Accounting and Financial Reporting Council (AFRC, formerly known as the Financial Reporting Council) and the Commission Against Corruption of Macao (CACC) in November 2021. During the operation, the offices of Wellink CPA and Wellink Corporate Advisory were searched by the Hong Kong ICAC and the AFRC and individuals implicated in the present case were arrested, while the CACC searched the Macao office of the construction firm concerned.Enquiries revealed that the four audit and consultant staff had allegedly falsified the accountants’ report of Huarchi Global showing its steady business growth to facilitate its listing application on the main board of the HKEX. It is suspected that the chairman of Huarchi Global had subsequently offered a reward of $1.5 million to the audit and consultant staff and their relatives for subscribing for the placing shares of Huarchi Global in its IPO.As the bribery inquiries are still ongoing, the ICAC would not rule out laying additional charges against the individuals concerned or prosecuting others after seeking further legal advice from the Department of Justice.The Hong Kong ICAC and the AFRC entered into a Memorandum of Understanding in 2021 to enhance collaboration in fighting against corruption, illicit activities and malpractices. While the present case was prompted by the maiden joint operation of the Hong Kong ICAC and the AFRC, the two agencies will continue to maintain close collaboration to foster the audit quality and integrity of financial reporting by listed entities and their auditors and the integrity of the financial market. On the corruption prevention and educational front, the two agencies have been working closely with the relevant professional bodies, such as providing corruption prevention training and advice for the industry, to enhance their integrity management and corruption prevention awareness.The AFRC and the CACC rendered full assistance to the Hong Kong ICAC during its investigation into the case. 30
Apr 2025Ex-manager of beverage company charged by ICAC guilty of concealing conflict of interest in advertisements worth $1.9mA former marketing manager of a beverage company, charged by the ICAC, was today (April 30) convicted after trial at the District Court for deceiving the company into awarding various outdoor advertisement purchase orders worth totalling about $1.9 million by concealing his control of a vendor, and conspiring with a subordinate to use false quotations and inspection reports to mislead the company.Chan Wing-fung, 41, former manager of marketing department of Vitasoy International Holdings Limited (Vitasoy), was found guilty of three charges – two of conspiracy for agents to use documents with intent to deceive his principal, contrary to section 9(3) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance; and one of fraud, contrary to section 16A of the Theft Ordinance.Co-defendant Keung Tze-ping, 50, former outdoor visibility officer of marketing department of Vitasoy, earlier pleaded guilty to the two counts of conspiracy for agents to use documents with intent to deceive her principal.Deputy Judge Ms Ivy Chui Yee-mei adjourned the case to June 10 for sentence, pending the defendants’ background report. Chan was remanded in custody of the Correctional Services Department.Among other duties at the material time, Chan was responsible for approving the engagement of vendors for the merchandising team and outdoor advertising team of Vitasoy’s marketing department while Keung would assist Chan to obtain quotations from vendors. They were required to obtain at least two or three quotations, subject to the amount of a procurement exercise involved. As stipulated in the staff handbook of Vitasoy, all staff members were required to disclose any possible conflict of interest to Vitasoy and seek permission in writing prior to participating in any business which would possibly cause a conflict of interest.The ICAC investigation arose from a corruption complaint filed by Vitasoy following an internal audit conducted by the company. Enquiries revealed that in January 2016, Chan instructed his girlfriend to establish Why Creative Graphic Design House (Why Creative) to take up the orders from Vitasoy. Chan had never declared to Vitasoy his interest in Why Creative despite the fact that Why Creative was controlled by him.Between January 2016 and early October 2019, Chan awarded 39 outdoor advertisement purchase orders of Vitasoy which worth totalling about $1.9 million to Why Creative. Chan’s girlfriend transferred 40 per cent of the profit totalling about $650,000 to Chan according to their agreement.The court also heard that Chan had approved to pay a monthly fee of $36,000 to a vendor without the authorisation of his supervisor, falsely claiming that that the inspections were arranged on Vitasoy’s outdoor advertisements.When being asked by Vitasoy to submit the relevant quotations of the three vendors, including Why Creative, and the inspection reports, Chan conspired with subordinates, including Keung, to forge 30 sets of quotation documents purportedly issued by four vendors for Vitasoy’s examination, so as to mislead the company that the procurements had complied with the relevant policy. Meanwhile, they fabricated 38 sets of outdoor advertisement inspection reports to mislead Vitasoy that inspections were completed by the relevant vendor.ICAC investigation revealed that the four vendors had never issued the quotations concerned and the relevant vendor had not conducted the inspections mentioned in the inspection reports.Vitasoy has rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Sabrina See, assisted by ICAC officer Leo Fung. 29
Apr 2025Duty-free store duo charged by ICAC jailed for conspiracy to defraud over $12m inflated prices red wine purchasesTwo former senior executives of a duty-free chain store, charged by the ICAC with conspiracy to defraud, were today (April 29) sentenced at the District Court to jail terms of 57 months and 14 months respectively for concealing their conflicting interest in companies set up by them over purchase and resell of bottled red wine sourced from a French supplier by inflating the prices by $12 million.Au Tsz-kei, 71, former merchandising and buying director of Sky Connection Limited (Sky Connection), was sentenced to 57 months’ imprisonment. He was earlier found guilty of one count of conspiracy to defraud, contrary to the Common Law.Co-defendant Lau Shu-yin, 78, former general manager of Sky Connection, who earlier pleaded guilty to the offence, was today jailed for 14 months.In sentencing, Judge Mr Clement Lee Hing-nin remarked that he took a starting point of eight years’ imprisonment in the present case as the duo committed a premeditated crime spanning over six years involving a defrauded sum of over $1.2 million. Their sentences were reduced, having considered their mitigations, including the fact that they had both reached the age of 70 during the trial and the restitution of their personal gains to Sky Connection. Lau received a further reduction in his jail term in view of his guilty plea and his assistance rendered to the prosecution in the trial.The present case arose from a corruption complaint received by the ICAC in mid-2019. At the material time, Sky Connection sold duty-free goods under the business name “Free Duty”. The merchandising and buying department, headed by Au, used to source bottled red wine from a winery in France directly for sale at “Free Duty” shops.The court heard that since August 2004, the two defendants had arranged Sky Connection to place purchase orders with the French winery via Jetfair Development Limited (Jetfair) and Master Good Trading Limited (Master Good). Between August 2004 and May 2011, Sky Connection had placed 56 purchase orders incurring payments totalling over $26 million through Jetfair and Master Good. ICAC enquiries revealed that Jetfair and Master Good had actually sourced the 56 batches of bottled red wine from the French winery at over $14 million and resold them to Sky Connection at inflated prices, causing Sky Connection to make extra payments of over $12 million.The ICAC investigation also revealed that Master Good and Jetfair were in fact funded by individuals including Au and Lau. Lau and his daughter were respectively the sole shareholder-cum-director of Master Good and Jetfair. Sky Connection required its staff to declare any conflict of interest and prohibited them from engaging in any business which might have a conflict with the company. But Au and Lau had never disclosed to Sky Connection their associations with Master Good and Jetfair.In addition, Au and Lau each shared part of the generated profits in the scam under an agreement. Lau had earlier admitted that he had received $2 million in total.Sky Connection rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Mickey Fung, assisted by ICAC officer May Lam. 24
Apr 2025Six months’ jail for site team leader of Third Runway Project guilty of bribery and blackmailA site team leader of a sub-contractor of the Third Runway Project of the Hong Kong International Airport (Third Runway Project), charged by the ICAC, was today (April 24) sentenced to six months’ imprisonment at the West Kowloon Magistrates’ Courts after being convicted of accepting bribes totalling about $44,000 from a carpenter and blackmail.Chow Kwai-fai, 50, former site team leader of MLife Engineering Limited (MEL), was convicted of two charges, namely one count of agent accepting an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance, and one count of blackmail, contrary to section 23(1) of the Theft Ordinance.In sentencing, Magistrate Ms Vivian Ho Wai-han remarked that bribery is a serious crime, warranting a custodial sentence. The court also ordered Chow to pay MEL a restitution of about $44,000, equivalent to the amount of bribes he received in the present case.At the material time, MEL was a sub-contractor of the Third Runway Project responsible for recruiting construction workers to conduct various works. Chow led a team of carpenters 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.The court heard that between October 2020 and April 2021, Chow had requested a carpenter under his supervision to pay him a bribe of $350 per working day. Chow told the carpenter to quit the job had he refused to pay bribes. The carpenter believed that Chow would terminate him if he did not accede to Chow’s solicitation, and paid bribes totalling $44,000 to Chow reluctantly.Another team leader, He Yuchuan, 57, charged in the present case, earlier received a jail term of seven months after pleading guilty to six counts of agent accepting an advantage. He was also ordered to pay MEL a restitution of about $160,000, equivalent to the amount of bribes he received from four workers.The Airport Authority Hong Kong, the relevant main contractor SAPR JV and MEL rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Mickey Fung, and assisted by ICAC officer Lawrence Wong. 22
Apr 2025Ex-manager of fabric company charged by ICAC gets 30 months’ jail for $1m fraudulent orders and money launderingA former project manager of a fabric company, charged by the ICAC for making false representations to cause three customers to place orders worth totalling about $1 million with companies owned by his associates and laundering crime proceeds of about $720,000, was today (April 22) sentenced to 30 months’ imprisonment at the District Court.Li Ka-wing, 53, former project manager of Showtex Hong Kong Limited (Showtex HK), was today sentenced to 30 months’ imprisonment. He earlier pleaded guilty to a total of nine charges, namely three counts of fraud and one of attempted fraud, contrary to section 16A of the Theft Ordinance and section 159G of the Crimes Ordinance; as well as five counts of dealing with property known or 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, Deputy Judge Ms Amy Chan Wai-mun remarked that the present case was serious in nature. She reprimanded the defendant for orchestrating the fraudulent scheme, in breach of the trust that was placed on him.A co-defendant of the case, Zhao Bingguo, 42, operator of Maban Trading Co., Limited (Maban), earlier pleaded guilty to the aforesaid five counts of money laundering at the District Court and received a jail term of one year.Li was a project manager of Showtex HK responsible for sourcing business when the offences took place between June 2018 and April 2019. Showtex HK supplied flame retardant curtain fabrics, installed stage projection screen and provided event decoration services.The court heard that Li had made false representations to three customers of ShowtexHK, respectively claiming that Maban and another multimedia company were subcontractors of Showtex HK, dealt with the same factory with Showtex HK or Showtex HK was unable to provide relevant services, causing the three aforesaid customers to place orders with Maban or the multimedia company.The ICAC investigation arose from a corruption complaint. Enquires revealed that Maban and the multimedia company were not subcontractors of Showtex HK and had no dealings with Showtex HK or its factory. It was revealed that at the material time, the three customers had placed orders worth totalling about $1 million with Maban and the multimedia company.Inquiries revealed that although the three aforesaid customers placed orders with Maban and the multimedia company, Li arranged Showtex HK to provide some of the items in the orders through fraudulent means. Part of the payment of the orders made by the customers to Maban and the multimedia company were eventually deposited into the bank accounts of Li or his family members.Investigations also revealed that Zhao was the operator of Maban, which engaged in knife trading. Zhao and the operator of the aforesaid multimedia company were former employees of Showtex HK.Li and Zhao dealt with crime proceeds of about $720,000 in relation to the scheme via the bank account of Maban, the court was told.Showtex HK has rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Bernard Chung, assisted by ICAC officers Henry Cheung, Keith Yan and Ruby Ho.