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Jul 2025Ex-chairman of listed company wanted by ICAC faces conspiracy to defraud charges over $330m fraudulent transactions upon return to HKA former chairman of a listed company wanted by the ICAC had surrendered himself to the Commission after returning to Hong Kong today (July 29). He will be brought to the court for mention tomorrow (July 30) for allegedly conspiring with then senior executives of the listed company to defraud its shareholders and The Stock Exchange of Hong Kong Limited (SEHK) by inflating the profit and assets of the listed company through fraudulent property transactions involving over $330 million in total.Li Songxiao, 59, former chairman of Neo-China Group (Holdings) Limited (Neo-China) (now renamed as Shanghai Industrial Urban Development Group Limited), faces two counts of conspiracy to defraud, contrary to the Common Law. He will be brought to the Eastern Magistrates’ Courts for mention tomorrow.The conspiracy to defraud offences were revealed in an ICAC investigation stemmed from a corruption complaint in relation to Neo-China. Upon applications made by the ICAC, warrants for the arrest of Li and two then executive directors of Neo-China, namely Che Hanshu and Zhang Yaohui, were issued by a Magistrate in late February 2011 as the trio had already left Hong Kong. The arrest warrants for Che and Zhang were still valid.Between October 2003 and August 2009, Li was the chairman of Neo-China while Che and Zhang were executive directors of the listed company.The charges allege that between November 2003 and July 2007, Li, Chen and Zhang had conspired with the company secretary and financial controller of Neo-China to defraud shareholders of Neo-China and the SEHK.The charges in regard to two property sale and purchase agreements involving Neo-China’s false representation about the acquisition of 100 per cent equity interest in Top Fair Limited (Top Fair) at $210 million, and the disposal of the entire interest in Noble Time Development Inc., a subsidiary of Neo-China, to Northwest Link Investments Limited (Northwest Link) at $123 million.The individuals concerned had allegedly made false representations in the announcements, circulars and an annual report of Neo-China that the owners of Top Fair and Northwest Link were independent of and not connected with the directors, chief executives or substantial shareholders, etc. of Neo-China; created false accounting statements concerning the considerations and profits of the two property sale and purchase agreements, and concealed Li as the beneficiary owner of Top Fair and Northwest Link.By making the fraudulent property transactions, the individual concerned had allegedly induced the shareholders of Neo-China to believe that the two transactions were genuine, and prevented the SEHK from performing its duties in relation to the protection of the minority shareholders of Neo-China.The SEHK rendered full assistance to the ICAC during its investigation into the case.Wanted person Che Hanshu: www.icac.org.hk/en/rc/wanted/index_id_25.htmlWanted person Zhang Yaohui: www.icac.org.hk/en/rc/wanted/index_id_23.html 25
Jul 2025Joint press release: ICAC and SFC joint operation against suspected market manipulation and corrupt practices leads to arrest of two former senior executives of listed companyThe Independent Commission Against Corruption (ICAC) and the Securities and Futures Commission (SFC) on Wednesday (July 23) conducted a joint operation, codenamed “Leverage”, targeting a sophisticated syndicate suspected of manipulating the shares of a listed company and engaging in corrupt activities (Notes 1 & 2).During the joint operation, the ICAC and the SFC searched 14 locations, including the offices of the listed company and SFC-licensed brokers. The ICAC arrested a former chairman and a former executive director of the listed company under the Prevention of Bribery Ordinance (Note 3).The syndicate allegedly conspired to use documents containing false information (including internal records and public announcements of the listed company), to falsely claim that the listed company had entered into a share subscription agreement and formed a joint venture with a Mainland company, involving amounts of over HK$20 million. Additionally, the syndicate allegedly manipulated and/or created false market appearance for the shares of the listed company through multiple nominee accounts.Furthermore, the former executive director of the listed company, who was a responsible officer and director of a broker during the material time, was suspected of accepting advantages from the former chairman of the listed company and misappropriating shares owned by a client of the broker worth approximately HK$9 million.The joint operation was the result of the SFC’s initial detection of suspicious trading activities suggesting potential market misconduct and corruption. The case was subsequently referred to the ICAC for investigation into suspected corruption, while the SFC focused on market misconduct under the Securities and Futures Ordinance.No further comments will be made as the investigation remains ongoing.Notes:1. Trading in shares of the listed company had been suspended since March 2025, following a court order mandating its liquidation.2. The joint operation was conducted under the arrangement of the Memorandum of Understanding signed between the ICAC and the SFC. For further details, please visit the websites of the ICAC and the SFC.3. The individuals involved are suspected of breaching the provisions under the Prevention of Bribery Ordinance, including offering advantages to agents and agents accepting advantages (i.e., offering and acceptance of bribes), as well as agents using false documents with the intent to deceive their principals. Additionally, they are also suspected of committing offences under the Organized and Serious Crimes Ordinance, specifically handling property known or believed to represent proceeds of indictable offences, and under the Securities and Futures Ordinance involving market manipulation and other forms of market misconduct. 22
Jul 2025Six months’ jail for team leader of Three-Runway System Project’s subcontractor for briberyA team leader of a subcontractor of the Three-Runway System Project (3RS Project) of the Hong Kong International Airport, charged by the ICAC, was today (July 22) sentenced to six months’ imprisonment at the West Kowloon Magistrates’ Courts for soliciting a bribe of $100 to $200 per day from a crane operator for continuing his employment.Hui Wai-kwok, 39, former team leader of New Ocean Machine Co., Limited (New Ocean), was earlier found guilty of one count of agent soliciting an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance.In sentencing, Magistrate Mr Gary Chu Man-hon remarked that the offence in the present case was serious in nature. The defendant exploited his subordinate out of greed, warranting a deterrent sentence.At the material time, New Ocean was a crane rental service provider of the 3RS Project. The company prohibited its employees from soliciting or accepting any advantages from others in relation to its business and affairs. As a team leader of New Ocean responsible for leading a team of crane operators to work at the construction site of the 3RS Project, the defendant had the authority to dismiss workers under his supervision.The ICAC investigation revealed that in early December 2022, the defendant solicited a bribe of $100 to $200 per day from a worker under his supervision for assisting latter to continue his employment with New Ocean. The worker joined New Ocean in November 2022 at a daily wage of $1,400. Soon after the defendant made the solicitation, the worker resigned and did not pay any bribe.New Ocean rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Stephen Lau, assisted by ICAC officer Lawrence Wong. 18
Jul 2025Four months’ jail for former employee of insurer for corruption over motor insurance of 600 new taxisA former employee of an insurance company, charged by the ICAC, was today (July 18) sentenced at the Eastern Magistrates’ Courts to four months’ imprisonment for soliciting a bribe from a director of a broker firm for assisting a client to take out motor insurance policies for 600 new taxis, involving premiums totalling over $24 million.Wong Ka-wing, 39, former team head of Bank of China Group Insurance Company Limited (BOCGI), was earlier found guilty after trial of one count of agent soliciting an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance.In sentencing, Magistrate Mr Kestrel Lam Tsz-hong remarked that the defendant had made use of this position to initiate bribe solicitations, constituting an offence which is serious in nature. Although the defendant eventually could not collect any bribes, society has no tolerance for corruption and the court had to mete out a custodial sentence.The offence in the present case took place between November 2022 and January 2023. At that time, the defendant was the team head of the brokers and agency business marketing department of BOCGI, which was responsible for liaising with broker firms, including Pro Insurance & Financial Management Limited (Pro Insurance), for selling insurance products such as motor insurance.Pro Insurance would arrange its clients to take out motor insurance policies from BOCGI for new taxis, and receive 5 per cent of the yearly premium of each policy from BOCGI as commission.In mid-2022, a client of Pro Insurance planned to take out vehicle insurance policies for over 600 new taxis. During the negotiation with BOCGI, a director of Pro Insurance proposed to lower the annual premium per vehicle from $45,500 to $40,000, or to increase the commission payable to Pro Insurance to 7.5 per cent.The court heard that the defendant subsequently told the director of Pro Insurance that he would assist Pro Insurance to secure BOCGI’s approval of the insurance policy agreement, and repeatedly solicited from the latter a bribe, ranging from 1 to 3 per cent of the total yearly insurance premiums of the agreement.The director of Pro Insurance rejected the solicitation. If the bribery scheme had materialised, the total yearly premiums for over 600 new taxis, each paying $40,000 per year, would have been over $24 million. Meanwhile, the bribe concerned would have amounted to over $240,000.BOCGI rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Anita Ma, assisted by ICAC officer Betty Wong. 17
Jul 2025Salesman of groceries supplier charged by ICAC gets 47 months’ jail for fraud over goods worth $12mA then senior sales executive of a groceries supplier, charged by the ICAC, was today (July 17) sentenced at the District Court to 47 months’ imprisonment for making false representations about the orders placed by various clients to induce the supplier to release goods worth totalling over $12 million in nine months and reselling them for personal gain.Mak Ka-wing, 46, former senior sales executive of Dah Chong Hong Limited (DCH), earlier pleaded guilty to 32 counts of fraud, contrary to section 16A of the Theft Ordinance.In sentencing, Deputy Judge Ms Stephanie Tsui May-har said the defendant had abused the high degree of trust his employer put in him to commit offences constituting a breach of trust. He had premeditated and plotted a scam by fabricating over 400 orders and company chops of clients, causing his employer to suffer significant financial losses and dealing it a heavy blow in the business environment during the pandemic.In view of the serious nature of the case, the deputy judge took a starting point of 72 months’ imprisonment. She reduced the jail term to 47 months, having considered the defendant’s guilty plea and other mitigating factors.The court heard that at the material time, the defendant was a senior sales executive of DCH’s food trading unit which engaged in the supply of groceries. He was responsible for handling groceries orders placed by clients. Upon receiving a request from a client, DCH would issue an invoice for arranging release or delivery of goods to the client.The ICAC investigation arose from a corruption complaint. Enquiries revealed that in the nine months between August 2020 and April 2021, the defendant had input fictitious orders into the DCH’s computer system and falsely represented that 32 clients had ordered goods from the company. As a result, DCH issued a total of 410 invoices to the clients and arranged goods worth totalling over $12 million to be released.Enquiries also found that the defendant affixed fake company chops of clients on the receipts. He subsequently resold the goods for personal gain, but he only repaid about $280,000 to DCH.DCH rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Douglas Lau, assisted by ICAC officer William Leung.
Jul 2025Ex-chairman of listed company wanted by ICAC faces conspiracy to defraud charges over $330m fraudulent transactions upon return to HKA former chairman of a listed company wanted by the ICAC had surrendered himself to the Commission after returning to Hong Kong today (July 29). He will be brought to the court for mention tomorrow (July 30) for allegedly conspiring with then senior executives of the listed company to defraud its shareholders and The Stock Exchange of Hong Kong Limited (SEHK) by inflating the profit and assets of the listed company through fraudulent property transactions involving over $330 million in total.Li Songxiao, 59, former chairman of Neo-China Group (Holdings) Limited (Neo-China) (now renamed as Shanghai Industrial Urban Development Group Limited), faces two counts of conspiracy to defraud, contrary to the Common Law. He will be brought to the Eastern Magistrates’ Courts for mention tomorrow.The conspiracy to defraud offences were revealed in an ICAC investigation stemmed from a corruption complaint in relation to Neo-China. Upon applications made by the ICAC, warrants for the arrest of Li and two then executive directors of Neo-China, namely Che Hanshu and Zhang Yaohui, were issued by a Magistrate in late February 2011 as the trio had already left Hong Kong. The arrest warrants for Che and Zhang were still valid.Between October 2003 and August 2009, Li was the chairman of Neo-China while Che and Zhang were executive directors of the listed company.The charges allege that between November 2003 and July 2007, Li, Chen and Zhang had conspired with the company secretary and financial controller of Neo-China to defraud shareholders of Neo-China and the SEHK.The charges in regard to two property sale and purchase agreements involving Neo-China’s false representation about the acquisition of 100 per cent equity interest in Top Fair Limited (Top Fair) at $210 million, and the disposal of the entire interest in Noble Time Development Inc., a subsidiary of Neo-China, to Northwest Link Investments Limited (Northwest Link) at $123 million.The individuals concerned had allegedly made false representations in the announcements, circulars and an annual report of Neo-China that the owners of Top Fair and Northwest Link were independent of and not connected with the directors, chief executives or substantial shareholders, etc. of Neo-China; created false accounting statements concerning the considerations and profits of the two property sale and purchase agreements, and concealed Li as the beneficiary owner of Top Fair and Northwest Link.By making the fraudulent property transactions, the individual concerned had allegedly induced the shareholders of Neo-China to believe that the two transactions were genuine, and prevented the SEHK from performing its duties in relation to the protection of the minority shareholders of Neo-China.The SEHK rendered full assistance to the ICAC during its investigation into the case.Wanted person Che Hanshu: www.icac.org.hk/en/rc/wanted/index_id_25.htmlWanted person Zhang Yaohui: www.icac.org.hk/en/rc/wanted/index_id_23.html 25
Jul 2025Joint press release: ICAC and SFC joint operation against suspected market manipulation and corrupt practices leads to arrest of two former senior executives of listed companyThe Independent Commission Against Corruption (ICAC) and the Securities and Futures Commission (SFC) on Wednesday (July 23) conducted a joint operation, codenamed “Leverage”, targeting a sophisticated syndicate suspected of manipulating the shares of a listed company and engaging in corrupt activities (Notes 1 & 2).During the joint operation, the ICAC and the SFC searched 14 locations, including the offices of the listed company and SFC-licensed brokers. The ICAC arrested a former chairman and a former executive director of the listed company under the Prevention of Bribery Ordinance (Note 3).The syndicate allegedly conspired to use documents containing false information (including internal records and public announcements of the listed company), to falsely claim that the listed company had entered into a share subscription agreement and formed a joint venture with a Mainland company, involving amounts of over HK$20 million. Additionally, the syndicate allegedly manipulated and/or created false market appearance for the shares of the listed company through multiple nominee accounts.Furthermore, the former executive director of the listed company, who was a responsible officer and director of a broker during the material time, was suspected of accepting advantages from the former chairman of the listed company and misappropriating shares owned by a client of the broker worth approximately HK$9 million.The joint operation was the result of the SFC’s initial detection of suspicious trading activities suggesting potential market misconduct and corruption. The case was subsequently referred to the ICAC for investigation into suspected corruption, while the SFC focused on market misconduct under the Securities and Futures Ordinance.No further comments will be made as the investigation remains ongoing.Notes:1. Trading in shares of the listed company had been suspended since March 2025, following a court order mandating its liquidation.2. The joint operation was conducted under the arrangement of the Memorandum of Understanding signed between the ICAC and the SFC. For further details, please visit the websites of the ICAC and the SFC.3. The individuals involved are suspected of breaching the provisions under the Prevention of Bribery Ordinance, including offering advantages to agents and agents accepting advantages (i.e., offering and acceptance of bribes), as well as agents using false documents with the intent to deceive their principals. Additionally, they are also suspected of committing offences under the Organized and Serious Crimes Ordinance, specifically handling property known or believed to represent proceeds of indictable offences, and under the Securities and Futures Ordinance involving market manipulation and other forms of market misconduct. 22
Jul 2025Six months’ jail for team leader of Three-Runway System Project’s subcontractor for briberyA team leader of a subcontractor of the Three-Runway System Project (3RS Project) of the Hong Kong International Airport, charged by the ICAC, was today (July 22) sentenced to six months’ imprisonment at the West Kowloon Magistrates’ Courts for soliciting a bribe of $100 to $200 per day from a crane operator for continuing his employment.Hui Wai-kwok, 39, former team leader of New Ocean Machine Co., Limited (New Ocean), was earlier found guilty of one count of agent soliciting an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance.In sentencing, Magistrate Mr Gary Chu Man-hon remarked that the offence in the present case was serious in nature. The defendant exploited his subordinate out of greed, warranting a deterrent sentence.At the material time, New Ocean was a crane rental service provider of the 3RS Project. The company prohibited its employees from soliciting or accepting any advantages from others in relation to its business and affairs. As a team leader of New Ocean responsible for leading a team of crane operators to work at the construction site of the 3RS Project, the defendant had the authority to dismiss workers under his supervision.The ICAC investigation revealed that in early December 2022, the defendant solicited a bribe of $100 to $200 per day from a worker under his supervision for assisting latter to continue his employment with New Ocean. The worker joined New Ocean in November 2022 at a daily wage of $1,400. Soon after the defendant made the solicitation, the worker resigned and did not pay any bribe.New Ocean rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Stephen Lau, assisted by ICAC officer Lawrence Wong. 18
Jul 2025Four months’ jail for former employee of insurer for corruption over motor insurance of 600 new taxisA former employee of an insurance company, charged by the ICAC, was today (July 18) sentenced at the Eastern Magistrates’ Courts to four months’ imprisonment for soliciting a bribe from a director of a broker firm for assisting a client to take out motor insurance policies for 600 new taxis, involving premiums totalling over $24 million.Wong Ka-wing, 39, former team head of Bank of China Group Insurance Company Limited (BOCGI), was earlier found guilty after trial of one count of agent soliciting an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance.In sentencing, Magistrate Mr Kestrel Lam Tsz-hong remarked that the defendant had made use of this position to initiate bribe solicitations, constituting an offence which is serious in nature. Although the defendant eventually could not collect any bribes, society has no tolerance for corruption and the court had to mete out a custodial sentence.The offence in the present case took place between November 2022 and January 2023. At that time, the defendant was the team head of the brokers and agency business marketing department of BOCGI, which was responsible for liaising with broker firms, including Pro Insurance & Financial Management Limited (Pro Insurance), for selling insurance products such as motor insurance.Pro Insurance would arrange its clients to take out motor insurance policies from BOCGI for new taxis, and receive 5 per cent of the yearly premium of each policy from BOCGI as commission.In mid-2022, a client of Pro Insurance planned to take out vehicle insurance policies for over 600 new taxis. During the negotiation with BOCGI, a director of Pro Insurance proposed to lower the annual premium per vehicle from $45,500 to $40,000, or to increase the commission payable to Pro Insurance to 7.5 per cent.The court heard that the defendant subsequently told the director of Pro Insurance that he would assist Pro Insurance to secure BOCGI’s approval of the insurance policy agreement, and repeatedly solicited from the latter a bribe, ranging from 1 to 3 per cent of the total yearly insurance premiums of the agreement.The director of Pro Insurance rejected the solicitation. If the bribery scheme had materialised, the total yearly premiums for over 600 new taxis, each paying $40,000 per year, would have been over $24 million. Meanwhile, the bribe concerned would have amounted to over $240,000.BOCGI rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Anita Ma, assisted by ICAC officer Betty Wong. 17
Jul 2025Salesman of groceries supplier charged by ICAC gets 47 months’ jail for fraud over goods worth $12mA then senior sales executive of a groceries supplier, charged by the ICAC, was today (July 17) sentenced at the District Court to 47 months’ imprisonment for making false representations about the orders placed by various clients to induce the supplier to release goods worth totalling over $12 million in nine months and reselling them for personal gain.Mak Ka-wing, 46, former senior sales executive of Dah Chong Hong Limited (DCH), earlier pleaded guilty to 32 counts of fraud, contrary to section 16A of the Theft Ordinance.In sentencing, Deputy Judge Ms Stephanie Tsui May-har said the defendant had abused the high degree of trust his employer put in him to commit offences constituting a breach of trust. He had premeditated and plotted a scam by fabricating over 400 orders and company chops of clients, causing his employer to suffer significant financial losses and dealing it a heavy blow in the business environment during the pandemic.In view of the serious nature of the case, the deputy judge took a starting point of 72 months’ imprisonment. She reduced the jail term to 47 months, having considered the defendant’s guilty plea and other mitigating factors.The court heard that at the material time, the defendant was a senior sales executive of DCH’s food trading unit which engaged in the supply of groceries. He was responsible for handling groceries orders placed by clients. Upon receiving a request from a client, DCH would issue an invoice for arranging release or delivery of goods to the client.The ICAC investigation arose from a corruption complaint. Enquiries revealed that in the nine months between August 2020 and April 2021, the defendant had input fictitious orders into the DCH’s computer system and falsely represented that 32 clients had ordered goods from the company. As a result, DCH issued a total of 410 invoices to the clients and arranged goods worth totalling over $12 million to be released.Enquiries also found that the defendant affixed fake company chops of clients on the receipts. He subsequently resold the goods for personal gain, but he only repaid about $280,000 to DCH.DCH rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Douglas Lau, assisted by ICAC officer William Leung.