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Ethical Decision MakingRecent ICAC Cases
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May 2025Director of aesthetic medical centre charged by ICAC for swindling $5.8m and misappropriating $3.1mThe ICAC yesterday (May 8) charged a director of an aesthetic medical centre for allegedly deceiving a shareholder into investing a total of $5.8 million in its business by inflating expenses in purchasing aesthetic medical equipment and renovations, and misappropriating company funds of over $3.1 million.Lau Sin-wah, 31, director and shareholder of ScR Dr. Pro Holdings Limited (ScR Dr. Pro), faces three charges – one of theft, one of fraud and one of attempted fraud, contrary to sections 9 and 16A (1) of the Theft Ordinance, and section 159G of the Crimes Ordinance.The defendant was released on ICAC bail, pending her appearance at the Eastern Magistrates’ Courts next Monday (May 12) for mention. The prosecution will later apply to transfer the case to the District Court for plea.The offences occurred between May and September 2022. During the period, the defendant, who was an artist, was starting up an aesthetic medical business with a woman. Upon the invitation of the defendant, another artist agreed to invest $5 million in the business and became one of the shareholders of ScR Dr. Pro. The defendant and the woman, both directors of the company, were responsible for its operation, including setting up an aesthetic medical centre.Two of the charges allege that the defendant had stolen over $3.1 million invested by the artist-and-shareholder in ScR Dr. Pro; and falsely represented to the latter that various sums totalling over $3 million had been properly used in ScR Dr. Pro for purchasing aesthetic medical equipment, and with intent to defraud, induced the latter not to demand return of her investment.The remaining charge alleges that the defendant had falsely represented to the artist-and-shareholder that ScR Dr. Pro had incurred renovation expenses of $1.68 million, leading to use up of the company’s funds, and attempted to deceive the latter into making a further payment of $800,000 for advertisement expenses.The ICAC investigation arose from a corruption complaint. Enquiries revealed that various receipts in relation to the expenses claimed to be used in purchasing aesthetic medical equipment and renovation of the centre were inflated. It was also suspected that company funds of ScR Dr. Pro misappropriated by the defendant were used for personal purposes by herself and her family members. 08
May 2025Logistics company’s coordinator charged by ICAC admits $9.1m air cargo space orders fraud over conflicting interestA former coordinator of a logistics company, charged by the ICAC, today (May 8) admitted at the District Court that he had deceived his then employer into placing air cargo space orders worth totalling over $9.1 million with carriers’ agents via two intermediaries associated with him for personal gain of over $1.2 million in total by concealing his conflicting interest.Wong Wing-ho, 42, former airfreight and business development coordinator of MBS Logistics Limited (MBS), today pleaded guilty to two counts of fraud, contrary to section 16A of the Theft Ordinance.Deputy Judge Miss Ivy Chui Yee-mei adjourned the case to May 22 for sentence and remanded the defendant in the custody of the Correctional Services Department.The court heard that MBS was a local subsidiary of MBS Logistics Group, a worldwide logistics company which provided logistic services to its clients including placing air cargo space orders through different carriers’ agents. At the material time, the defendant was responsible for seeking quotations from carriers’ agents for clients, arranging delivery of clients’ goods to the agents, and submitting invoices of carriers’ agents to MBS for payment approval.The ICAC investigation arose from a corruption complaint. Enquiries revealed that between March 2016 and June 2019, the defendant had recommended MBS to place over 430 air cargo space orders with a carriers’ agent via two intermediaries, namely JTC Development Limited (JTC) and AK Logistics Limited (AKL), and to make payments totalling over $9.1 million to the two intermediaries.Enquiries by the ICAC found that the defendant and his family members had financial interests in JTC, which was set up by connected persons of the defendant, while company chop, cheque book and other company documents of JTC were seized by ICAC officers from the defendant’s residence.The investigation also revealed that it was agreed between the defendant and AKL that multilayer arrangements could be made for MBS to place orders with the carriers’ agent through JTC via AKL. In return, the defendant would pay a handling charge of around $50 to $100 per order to AKL.The defendant had made a personal gain of over $1.2 million in total out of the scam, but he had never disclosed to MBS his interests in JTC and his agreement with AKL over the orders.MBS rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Jason Lau, assisted by ICAC officers Raymond Lai and Jennifer Lee.The ICAC advises business organisations to establish clear guidelines and systems of declaration on conflict of interest. Staff members of business organisations are reminded to avoid conflict of interest situations and to make timely declaration to their employers. Concealing any conflict of interest in relation to one’s official duties to benefit himself or his associates may constitute a breach of the Prevention of Bribery Ordinance or other criminal law. 08
May 2025Imported site team leader of airport expansion works charged by ICAC gets four and a half months’ jail for accepting bribes from workersAn imported site team leader of Terminal 2 expansion works of the Hong Kong International Airport (HKIA), charged by the ICAC with accepting bribes from eight imported workers over their employment, was today (May 8) sentenced to four and a half months’ imprisonment at the West Kowloon Magistrates’ Courts.At the material time, Wang Zhenzhong, 36, was an imported site team leader employed by Gammon Construction Limited (Gammon). He earlier pleaded guilty to one count of conspiracy for an agent to accept advantages, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance, and was ordered to pay Gammon a restitution of $35,100, equivalent to the amount of bribes he received in the present case.In sentencing, Magistrate Mr Gary Chu Man-hon today remarked that he took a starting point of nine months’ imprisonment, and reduced the jail term of the defendant to four and a half months, having considered his guilty plea and restitution made to Gammon.The court heard that Gammon was the main contractor for the Terminal 2 expansion works of the HKIA. Due to labour shortage in the construction industry, Gammon applied for importation quota through the Development Bureau’s Labour Importation Scheme for Construction Sector for its subcontractors. The employment contracts stipulated that the monthly salary of the imported workers was $31,200.At the material time, the defendant was responsible for leading eight imported workers to work at the Terminal 2 expansion works project under the supervision of a subcontractor. The ICAC investigation stemmed from a corruption complaint. Enquires revealed that between April and October 2024, the defendant conspired together with a middleman to accept bribes from eight imported workers for assisting them to continue their employment with Gammon.It was revealed that the middleman told the workers that they were only entitled to a monthly salary of $20,000, and the defendant collected the salary differences for the middleman. The eight workers acceded to the defendant’s illicit solicitations for fear of losing their jobs. At the material time, the defendant had accepted bribes of over $35,000 from one of the workers.An ICAC spokesperson notes that to enhance imported workers’ understanding of Hong Kong’s anti-corruption laws, the ICAC would arrange corruption prevention talks for them within eight weeks of their arrival. The Commission will continue to disseminate anti-corruption messages through different channels.The ICAC does not tolerate corruption and will continue to collaborate with the Development Bureau and other stakeholders to prevent similar crimes. Should construction workers be asked to pay bribes in exchange for their employment, they should reject and report to the ICAC immediately. The ICAC’s report corruption hotline: 25 266 366.Gammon rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Nicky Wong. 07
May 2025Three property agents charged by ICAC over bribes-for-divulging property vendors’ informationA property agent and two directors of another property agency were charged by the ICAC today (May 7) for allegedly offering and accepting bribes totalling $32,500 for divulging information of property vendors to promote services of the property agency.The defendants are Kong Ka-shing, 27, property agent of Midland Realty International Limited (Midland Realty); Tong Hei-yi, 31; and Chau Ting-fung, 42, both directors-cum-shareholders of Kashing Property (Corp) Limited (Kashing Property).The trio jointly face 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.Kong further faces one count of access to computer with criminal or dishonest intent, contrary to Section 161(1)(c) of the Crimes Ordinance.The three defendants were released on ICAC bail, pending their appearance at the Shatin Magistrates’ Courts on Friday (May 9) for mention.At the material time, Kong was posted to a branch of Midland Realty in Shatin, and Tong and Chau were directors-cum-shareholders of Kashing Property, a property agency providing property agency services in Taipo and nearby areas.One of the charges alleges that between May and October 2022, the three defendants conspired with others for Kong to accept $32,500 from individuals including Tong and Chau to assist those individuals or Kashing Property to obtain client information of Midland Realty.Another charge alleges that Kong obtained access to a computer operated by Midland Realty with a view to dishonest gain when working at the Shatin branch of Midland Realty during the abovementioned period.The ICAC investigation stemmed from a corruption complaint. Enquiries revealed that in the six months when the offences occurred, Kong was suspected of accepting several thousand dollars per month from Kashing Property for retrieving the information of property vendors, including their surnames, phone numbers and property addresses, from the database of Midland Realty, and passing over 1,000 records of property vendors to individuals including Tong and Chau for Kashing Property to promote its services.Midland Realty rendered full assistance to the ICAC during its investigation into the case. 06
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.
May 2025Director of aesthetic medical centre charged by ICAC for swindling $5.8m and misappropriating $3.1mThe ICAC yesterday (May 8) charged a director of an aesthetic medical centre for allegedly deceiving a shareholder into investing a total of $5.8 million in its business by inflating expenses in purchasing aesthetic medical equipment and renovations, and misappropriating company funds of over $3.1 million.Lau Sin-wah, 31, director and shareholder of ScR Dr. Pro Holdings Limited (ScR Dr. Pro), faces three charges – one of theft, one of fraud and one of attempted fraud, contrary to sections 9 and 16A (1) of the Theft Ordinance, and section 159G of the Crimes Ordinance.The defendant was released on ICAC bail, pending her appearance at the Eastern Magistrates’ Courts next Monday (May 12) for mention. The prosecution will later apply to transfer the case to the District Court for plea.The offences occurred between May and September 2022. During the period, the defendant, who was an artist, was starting up an aesthetic medical business with a woman. Upon the invitation of the defendant, another artist agreed to invest $5 million in the business and became one of the shareholders of ScR Dr. Pro. The defendant and the woman, both directors of the company, were responsible for its operation, including setting up an aesthetic medical centre.Two of the charges allege that the defendant had stolen over $3.1 million invested by the artist-and-shareholder in ScR Dr. Pro; and falsely represented to the latter that various sums totalling over $3 million had been properly used in ScR Dr. Pro for purchasing aesthetic medical equipment, and with intent to defraud, induced the latter not to demand return of her investment.The remaining charge alleges that the defendant had falsely represented to the artist-and-shareholder that ScR Dr. Pro had incurred renovation expenses of $1.68 million, leading to use up of the company’s funds, and attempted to deceive the latter into making a further payment of $800,000 for advertisement expenses.The ICAC investigation arose from a corruption complaint. Enquiries revealed that various receipts in relation to the expenses claimed to be used in purchasing aesthetic medical equipment and renovation of the centre were inflated. It was also suspected that company funds of ScR Dr. Pro misappropriated by the defendant were used for personal purposes by herself and her family members. 08
May 2025Logistics company’s coordinator charged by ICAC admits $9.1m air cargo space orders fraud over conflicting interestA former coordinator of a logistics company, charged by the ICAC, today (May 8) admitted at the District Court that he had deceived his then employer into placing air cargo space orders worth totalling over $9.1 million with carriers’ agents via two intermediaries associated with him for personal gain of over $1.2 million in total by concealing his conflicting interest.Wong Wing-ho, 42, former airfreight and business development coordinator of MBS Logistics Limited (MBS), today pleaded guilty to two counts of fraud, contrary to section 16A of the Theft Ordinance.Deputy Judge Miss Ivy Chui Yee-mei adjourned the case to May 22 for sentence and remanded the defendant in the custody of the Correctional Services Department.The court heard that MBS was a local subsidiary of MBS Logistics Group, a worldwide logistics company which provided logistic services to its clients including placing air cargo space orders through different carriers’ agents. At the material time, the defendant was responsible for seeking quotations from carriers’ agents for clients, arranging delivery of clients’ goods to the agents, and submitting invoices of carriers’ agents to MBS for payment approval.The ICAC investigation arose from a corruption complaint. Enquiries revealed that between March 2016 and June 2019, the defendant had recommended MBS to place over 430 air cargo space orders with a carriers’ agent via two intermediaries, namely JTC Development Limited (JTC) and AK Logistics Limited (AKL), and to make payments totalling over $9.1 million to the two intermediaries.Enquiries by the ICAC found that the defendant and his family members had financial interests in JTC, which was set up by connected persons of the defendant, while company chop, cheque book and other company documents of JTC were seized by ICAC officers from the defendant’s residence.The investigation also revealed that it was agreed between the defendant and AKL that multilayer arrangements could be made for MBS to place orders with the carriers’ agent through JTC via AKL. In return, the defendant would pay a handling charge of around $50 to $100 per order to AKL.The defendant had made a personal gain of over $1.2 million in total out of the scam, but he had never disclosed to MBS his interests in JTC and his agreement with AKL over the orders.MBS rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Jason Lau, assisted by ICAC officers Raymond Lai and Jennifer Lee.The ICAC advises business organisations to establish clear guidelines and systems of declaration on conflict of interest. Staff members of business organisations are reminded to avoid conflict of interest situations and to make timely declaration to their employers. Concealing any conflict of interest in relation to one’s official duties to benefit himself or his associates may constitute a breach of the Prevention of Bribery Ordinance or other criminal law. 08
May 2025Imported site team leader of airport expansion works charged by ICAC gets four and a half months’ jail for accepting bribes from workersAn imported site team leader of Terminal 2 expansion works of the Hong Kong International Airport (HKIA), charged by the ICAC with accepting bribes from eight imported workers over their employment, was today (May 8) sentenced to four and a half months’ imprisonment at the West Kowloon Magistrates’ Courts.At the material time, Wang Zhenzhong, 36, was an imported site team leader employed by Gammon Construction Limited (Gammon). He earlier pleaded guilty to one count of conspiracy for an agent to accept advantages, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance, and was ordered to pay Gammon a restitution of $35,100, equivalent to the amount of bribes he received in the present case.In sentencing, Magistrate Mr Gary Chu Man-hon today remarked that he took a starting point of nine months’ imprisonment, and reduced the jail term of the defendant to four and a half months, having considered his guilty plea and restitution made to Gammon.The court heard that Gammon was the main contractor for the Terminal 2 expansion works of the HKIA. Due to labour shortage in the construction industry, Gammon applied for importation quota through the Development Bureau’s Labour Importation Scheme for Construction Sector for its subcontractors. The employment contracts stipulated that the monthly salary of the imported workers was $31,200.At the material time, the defendant was responsible for leading eight imported workers to work at the Terminal 2 expansion works project under the supervision of a subcontractor. The ICAC investigation stemmed from a corruption complaint. Enquires revealed that between April and October 2024, the defendant conspired together with a middleman to accept bribes from eight imported workers for assisting them to continue their employment with Gammon.It was revealed that the middleman told the workers that they were only entitled to a monthly salary of $20,000, and the defendant collected the salary differences for the middleman. The eight workers acceded to the defendant’s illicit solicitations for fear of losing their jobs. At the material time, the defendant had accepted bribes of over $35,000 from one of the workers.An ICAC spokesperson notes that to enhance imported workers’ understanding of Hong Kong’s anti-corruption laws, the ICAC would arrange corruption prevention talks for them within eight weeks of their arrival. The Commission will continue to disseminate anti-corruption messages through different channels.The ICAC does not tolerate corruption and will continue to collaborate with the Development Bureau and other stakeholders to prevent similar crimes. Should construction workers be asked to pay bribes in exchange for their employment, they should reject and report to the ICAC immediately. The ICAC’s report corruption hotline: 25 266 366.Gammon rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Nicky Wong. 07
May 2025Three property agents charged by ICAC over bribes-for-divulging property vendors’ informationA property agent and two directors of another property agency were charged by the ICAC today (May 7) for allegedly offering and accepting bribes totalling $32,500 for divulging information of property vendors to promote services of the property agency.The defendants are Kong Ka-shing, 27, property agent of Midland Realty International Limited (Midland Realty); Tong Hei-yi, 31; and Chau Ting-fung, 42, both directors-cum-shareholders of Kashing Property (Corp) Limited (Kashing Property).The trio jointly face 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.Kong further faces one count of access to computer with criminal or dishonest intent, contrary to Section 161(1)(c) of the Crimes Ordinance.The three defendants were released on ICAC bail, pending their appearance at the Shatin Magistrates’ Courts on Friday (May 9) for mention.At the material time, Kong was posted to a branch of Midland Realty in Shatin, and Tong and Chau were directors-cum-shareholders of Kashing Property, a property agency providing property agency services in Taipo and nearby areas.One of the charges alleges that between May and October 2022, the three defendants conspired with others for Kong to accept $32,500 from individuals including Tong and Chau to assist those individuals or Kashing Property to obtain client information of Midland Realty.Another charge alleges that Kong obtained access to a computer operated by Midland Realty with a view to dishonest gain when working at the Shatin branch of Midland Realty during the abovementioned period.The ICAC investigation stemmed from a corruption complaint. Enquiries revealed that in the six months when the offences occurred, Kong was suspected of accepting several thousand dollars per month from Kashing Property for retrieving the information of property vendors, including their surnames, phone numbers and property addresses, from the database of Midland Realty, and passing over 1,000 records of property vendors to individuals including Tong and Chau for Kashing Property to promote its services.Midland Realty rendered full assistance to the ICAC during its investigation into the case. 06
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.