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Ethical Decision MakingRecent ICAC Cases
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Feb 2025Listed company $200m ‘backdoor listing’ conspiracy to defraud case: Duo jailed for 34 and 37 months, ICAC files confiscation order applicationA then substantial shareholder of a listed company and its then chairman, charged by the ICAC and convicted after trial, were today (February 3) sentenced to 34 months and 37 months in jail respectively at the District Court for conspiring with a businessman to defraud The Stock Exchange of Hong Kong Limited (SEHK), the listed company and its board of directors and shareholders by concealing a secret “backdoor listing” agreement in a capital raising exercise involving illicit payments of over $200 million. The ICAC had already filed with the court an application for confiscating the crime proceeds concerned.Chim Pui-chung, 78, then substantial shareholder of Asia Resources Holdings Limited (Asia Resources), was sentenced to 34 months’ imprisonment; Ricky Chim Kim-lun, 55, then chairman of Asia Resources, received a jail term of 37 months. The duo were both disqualified from being company directors for three years. They were earlier found guilty of two counts of conspiracy to defraud, contrary to the Common Law.Wong Poe-lai, 68, then employee of businessman Ma Zhonghong, also implicated in the present case, received a jail term of 24 months. She was convicted of one count of dealing with property known or reasonably believed to represent proceeds of an indictable offence (commonly known as money laundering), contrary to section 25(1) of the Organized and Serious Crimes Ordinance.In sentencing, Judge Mr Ernest Lin Kam-hung reprimanded the defendants for undermining Hong Kong’s reputation as a financial centre and making an adverse impact on the monitoring mechanism of the city’s financial system. The Judge noted that Chim Pui-chung was the instigator of the scam while Ricky Chim had abused his official capacity and the trust placed in him by the board of directors of the listed company and the public. While the duo were equally liable, the Judge took a start point of 48 months’ imprisonment. After considering various mitigating factors, their jail terms were reduced to 34 months and 37 months respectively.An ICAC spokesperson noted that the Commission would continue its close collaboration with financial regulators to combat corruption and related crimes involving listed companies to uphold integrity of the Hong Kong financial market. The ICAC had already filed an application for confiscation order with the District Court and would spare no effort in recovering the crime proceeds concerned.Meanwhile, the warrant for the arrest of businessman Ma Zhonghong, issued earlier by the District Court upon ICAC’s application, is still in effect. Ma was charged with two counts of conspiracy to defraud and one count of money laundering. Ma has been wanted by the ICAC after he failed to attend court on October 25, 2022.The present case stemmed from a corruption complaint referred to the ICAC by the Securities and Futures Commission (SFC). Upon completion of the ICAC investigation, four individuals taking part in the secret “backdoor listing” scheme were charged with conspiracy to defraud and money laundering.At the material time, Asia Resources was listed on the Main Board of the SEHK. After Chim Pui-chung became a substantial shareholder of Asia Resources in mid-October 2008, his son, Ricky Chim, was appointed as an executive director of Asia Resources on the following day, and served as chairman of its board of directors between December 19, 2008 and December 11, 2014.The court heard that in July 2013, Chim Pui-chung and Ricky Chim negotiated with Ma in private a “backdoor listing” agreement selling the control of Asia Resources to Ma. On the basis that the entire 100 per cent shareholding of Asia Resources would cost $300 million, the trio made an agreement for Ma to pay Chim Pui-chung a sum of about $210 million to control 70 to 75 per cent of the entire issued share capital of Asia Resources (the “backdoor listing” agreement).In order to execute the “backdoor listing” agreement, Ricky Chim, as the chairman of Asia Resources, chaired two board meetings in late July and early August 2013. At the meetings, directors of Asia Resources resolved and approved to proceed with the placing of new shares and the issuance of convertible notes to raise funds of over $550 million (capital-raising exercise). Ricky Chim, who voted on both occasions, declared that he did not have any interest in the capital-raising exercise and he had never disclosed the “backdoor listing” agreement to Asia Resources. The placing of new shares in the capital-raising exercise was completed in late July 2013.In mid-August and mid-September 2013, Asia Resources respectively published an announcement and a circular in relation to the issuance of convertible notes in the capital-raising exercise, stating that no directors and shareholders had a material interest in the issuance of convertible notes, and no shareholders were required to abstain from voting in the special general meeting concerned. At the special general meeting held on October 3, 2013, Chim Pui-chung voted for the issuance of convertible notes. The resolution was eventually passed by shareholders.The ICAC enquiries revealed that Chim Pui-chung received a total sum of $169 million from Ma pursuant to the “backdoor listing” agreement about a month after Asia Resources approved of the capital-raising exercise.Chim Pui-chung and Ricky Chim had concealed from the SEHK the purpose of the capital-raising exercise, which was to increase the entire issued share capital of Asia Resources, thereby facilitating the execution of the “backdoor listing” agreement, causing the SEHK to approve the publication of the announcements and circulars in relation to the capital-raising exercise by Asia Resources, the court heard.Between October 2013 and January 2014, co-defendant Wong followed the instruction of her employer, Ma, to deal with proceeds of indictable offence, namely convertible notes issued by Asia Resources in the principal amount of $42 million.The SEHK and the SFC rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutors Derek Wong and Ivan Shiu, assisted by ICAC officer Vivian Poon. 23
Jan 2025Ex-bank employee charged by ICAC admits bribery and fraud over client referrals to broker for mortgage loan applications with another bankA former employee of a bank, charged by the ICAC, today (January 23) admitted at the Kowloon City Magistrates’ Courts that she had accepted a bribe for referring a client to the proprietor of a lending referral agency without permission and arranged clients to apply for mortgage loans with another bank to defraud the latter of referral fees.Amy Chow Bik-sum, 49, former assistant customer service manager of OCBC Bank (Hong Kong) Limited (formerly known as OCBC Wing Hang Bank Limited) (OCBC), today pleaded guilty to one count of conspiracy for an agent to accept an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance; and one count of fraud, contrary to section 16A of the Theft Ordinance.Acting Principal Magistrate Mr Ko Wai-hung adjourned the case to February 10 for sentence, pending Chow’s background report. Chow was remanded in the custody of the Correctional Services Department.Co-defendants Yip Man-yee, 46, proprietor of The Capital Property (TCP); and Mak Miu-ling, 56, former deputy manager of Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia)), today pleaded not guilty to the charges. The case was scheduled for March 7 for a pre-trial review.At the material time, Chow was an assistant customer service manager of OCBC posted to its Tsim Sha Tsui branch while Mak was a deputy manager of ICBC (Asia) posted to its Ho Man Tin branch. The respective duties of Chow and Mak included handling of residential mortgage applications. Both banks would release agency referral fees to their appointed mortgage intermediaries for successful residential mortgage applications, but the relevant staff handling those applications, including Chow and Mak, were not entitled to any commissions or agency referral fees.Cybernetics Property Mortgage Limited (CPM) was an appointed mortgage intermediary of ICBC (Asia). For each successful mortgage application jointly procured with an agent, CPM would release 95 per cent of the agency referral fee released by ICBC (Asia) as a broker fee to the agent. As an agent of CPM in mortgage referral business, TCP was entitled to receive a broker fee from CPM for each successful mortgage application referred to ICBC (Asia).Chow admitted that between August 2019 and August 2021, she had referred two OCBC clients to then ICBC (Asia) employee, Mak, and the proprietor of TCP, Yip, for arranging mortgage loan applications with ICBC (Asia) without asking for OCBC’s permission.Chow further admitted that she had falsely represented to ICBC (Asia) that one of the two clients was referred by CPM to deceive ICBC (Asia) into paying a mortgage loan referral fee of $18,000 to CPM. She had also accepted a bribe of over $16,000 from Yip for referring the second client to TCP.TCP had received two broker fees of about $17,000 and about $32,000 respectively from CPM for referring the two clients, the court heard.OCBC did not allow its employees to refer mortgage loan applications of its clients to other individuals or institutions, and prohibited its employees from soliciting or accepting advantages from others in relation to OCBC’s business.OCBC, ICAC (Asia) and CPM rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Gary Chan. 22
Jan 2025Intermediary among five charged by ICAC over $6m SLG loan fraud by conspiracy to submit false payroll records of SMEAn intermediary, the operator and proprietor of a Small and Medium Enterprise (SME) engaging in jewellery business and two others were charged by the ICAC today (January 22) with conspiracy to defraud and conspiracy to launder crime proceeds, following a corruption investigation which revealed that the intermediary had allegedly advised the SME duo to submit false payroll records which induced a bank to grant two loans totalling $6 million under the Special 100% Loan Guarantee (SLG) scheme.The five defendants, aged between 37 and 56, are Li Kei-wing, then director cum shareholder of Corporate Good Doctor Company Limited; Michelle Choi Wai-shan and her elder brother Choi Wai-hang, respectively proprietor and operator of Superl Jade & Jewels Company (Superl Jade & Jewels); and two associates of Li Kei-wing, namely Chik Yiu-hang and Loy Tsz-man. They face two counts of conspiracy to defraud, contrary to Common Law; one count of dealing with property known or believed to represent proceeds of an indictable offence (conspiracy to commit money laundering), contrary to section 25(1) of the Organized and Serious Crimes Ordinance and section 159A of the Crimes Ordinance; and five alternative charges of money laundering.The five defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Friday (January 24) for mention. The prosecution will later make an application for transferring the case to the District Court for plea.The ICAC investigation arose from a corruption complaint, which subsequently revealed the illicit SLG loans fraud in the present case. SLG scheme was launched by HKMC Insurance Limited (HKMCI) in April 2020 to ease SMEs’ cash flow pressure under the pandemic. Loans approved by lenders were fully guaranteed by the government. At the material time of the present case, the maximum facility amount was the total amount of wages paid by an SME to its employees and its rental payments for 18 months, or $6 million. Applicants were required to provide the lenders with the relevant proofs.The Hongkong and Shanghai Banking Corporation Limited (HSBC) was one of the participating lenders under the scheme. After confirming an application received was legitimate, HSBC would forward the application to HKMCI for final review and approval to grant a guarantee.It is alleged that between late March and mid-April 2021, Li, Michelle Choi, Choi Wai-hang and Chik had conspired together to defraud HSBC and HKMCI by submitting false payroll records of Superl Jade & Jewels in respect of its SLG loan application, and falsely representing to HKMCI that the loan granted would be used to pay wages or provide working capital for business operations of the company, causing HSBC and HKMCI to approve a loan of $5 million to Superl Jade & Jewels.Between mid-April and late May 2021, Li, Michelle Choi and Choi Wai-hang had also allegedly conspired together to deceive HSBC and HKMCI into granting another loan of $1 million to Superl Jade & Jewels by similar fraudulent means.It is also alleged that the five defendants had conspired together to launder crime proceeds in mid-April 2021, after Superl Jade & Jewels was granted the first loan of $5 million. They had allegedly dealt with the loan, knowing that it represented proceeds of an indictable offence. Each of them also faces an alternative charge of money laundering for allegedly transferring the loan granted to Superl Jade & Jewels to their personal bank accounts.ICAC enquiries revealed that Michelle Choi was registered as the proprietor of Superl Jade & Jewels, but the company was operated and owned by her elder brother Choi Wai-hang and it had no employee. Investigation also revealed that in early 2021, Li allegedly suggested the Choi siblings to apply for SLG loans from HSBC with false employee information and Mandatory Provident Fund contribution records to secure a higher loan amount. He also assisted the duo in processing the relevant loan application documents.The HKMCI and HSBC had rendered full assistance to the ICAC during its investigation into the case. 21
Jan 2025Five employees of logistics company charged by ICAC for fraud over $4.5m service charges by concealing conflict of interestFive employees of a logistics company were charged by the ICAC today (January 21) for allegedly deceiving the company into paying service charges totalling over $4.5 million by concealing their interests in various light goods vehicles (LGVs) and arranging others to use those LGVs to take up delivery orders of the company.The five defendants, aged between 39 and 59, face four counts of conspiracy to defraud in total, contrary to Common Law. They were Or Chi-ho, then transportation manager of V-Logic Limited (V-Logic); Tam Lap-kuen and Canny Chan Ka-ming, respectively then and serving delivery team leader of V-Logic; and Ho Wai-man and Tang Weide, both then drivers of the company.The five defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Thursday (January 23) for mention. The prosecution will later make an application for transferring the case to the District Court for plea.V-Logic, which provides local delivery services, has a team of in-house drivers and another team of outsourced drivers taking up clients’ orders. Between November 2017 and November 2021, Or was promoted to transportation manager of V-Logic while Tam and Chan were delivery team leaders of the company. The trio were mainly responsible for hiring outsourced drivers and assigning delivery jobs of V-Logic to in-house and outsourced drivers. Ho and Tong were in-house drivers of the company.Two of the charges allege that Or, Tam and Chan had conspired together with an outsourced driver of V-Logic to induce the company to pay service charges totalling over $3.2 million by concealing from the company that two LGVs were owned or controlled by the trio and arranging others to register as outsourced drivers of the company and to use those LGVs to take up its delivery orders.Two other charges allege that the five defendants had conspired together with the outsourced driver to conceal Ho and Tang’s beneficial interest in two other LGVs from V-Logic and induced V-Logic to pay service charges totalling about $1.3 million by similar fraudulent means.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Or, Tam and Chan allegedly arranged an outsourced driver of V-Logic to purchase four LGVs and arranged the latter and another person to register as owners of the LGVs with the Transport Department for taking up the orders of V-Logic.Employees of V-Logic are prohibited from assigning the company’s delivery orders to any associated person or arranging any LGVs owned by them to take up its delivery orders. ICAC enquiries revealed that the four LGVs concerned were allegedly controlled by the five defendants, who had never disclosed to the company their interests in the vehicles. As a result, service charges totalling over $4.5 million were paid to the five defendants.V-Logic had rendered full assistance to the ICAC during its investigation into the case.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 arising in the workplace 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. 15
Jan 2025Then team leader of Three-Runway System Project’s subcontractor charged by ICAC for allegedly soliciting bribe from crane operatorA then team leader of a subcontractor of the Three-Runway System Project (3RS Project) of the Hong Kong International Airport was charged by the ICAC today (January 15) for allegedly soliciting a bribe of $100 to $200 per day from a crane operator for continuing his employment. The worker did not resort to bribery.Hui Wai-kwok, 38, then team leader of New Ocean Machine Co., Limited (New Ocean), faces one count of agent soliciting an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance. He was released on ICAC bail, pending his appearance at the West Kowloon Magistrates’ Courts on Friday (January 17) for plea.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. The defendant was a team leader of New Ocean responsible for leading a team of crane operators to work at the construction site of the 3RS Project. He had the authority to dismiss workers under his supervision.It is alleged that in early December 2022, the defendant had solicited a bribe of $100 to $200 per day from a worker under his supervision for assisting him to continue his employment with New Ocean.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the worker joined New Ocean in November 2022 at a daily wage of $1,400. He resigned from the company soon after the defendant made solicitation and did not pay bribe.New Ocean rendered full assistance to the ICAC during its investigation into the case.
Feb 2025Listed company $200m ‘backdoor listing’ conspiracy to defraud case: Duo jailed for 34 and 37 months, ICAC files confiscation order applicationA then substantial shareholder of a listed company and its then chairman, charged by the ICAC and convicted after trial, were today (February 3) sentenced to 34 months and 37 months in jail respectively at the District Court for conspiring with a businessman to defraud The Stock Exchange of Hong Kong Limited (SEHK), the listed company and its board of directors and shareholders by concealing a secret “backdoor listing” agreement in a capital raising exercise involving illicit payments of over $200 million. The ICAC had already filed with the court an application for confiscating the crime proceeds concerned.Chim Pui-chung, 78, then substantial shareholder of Asia Resources Holdings Limited (Asia Resources), was sentenced to 34 months’ imprisonment; Ricky Chim Kim-lun, 55, then chairman of Asia Resources, received a jail term of 37 months. The duo were both disqualified from being company directors for three years. They were earlier found guilty of two counts of conspiracy to defraud, contrary to the Common Law.Wong Poe-lai, 68, then employee of businessman Ma Zhonghong, also implicated in the present case, received a jail term of 24 months. She was convicted of one count of dealing with property known or reasonably believed to represent proceeds of an indictable offence (commonly known as money laundering), contrary to section 25(1) of the Organized and Serious Crimes Ordinance.In sentencing, Judge Mr Ernest Lin Kam-hung reprimanded the defendants for undermining Hong Kong’s reputation as a financial centre and making an adverse impact on the monitoring mechanism of the city’s financial system. The Judge noted that Chim Pui-chung was the instigator of the scam while Ricky Chim had abused his official capacity and the trust placed in him by the board of directors of the listed company and the public. While the duo were equally liable, the Judge took a start point of 48 months’ imprisonment. After considering various mitigating factors, their jail terms were reduced to 34 months and 37 months respectively.An ICAC spokesperson noted that the Commission would continue its close collaboration with financial regulators to combat corruption and related crimes involving listed companies to uphold integrity of the Hong Kong financial market. The ICAC had already filed an application for confiscation order with the District Court and would spare no effort in recovering the crime proceeds concerned.Meanwhile, the warrant for the arrest of businessman Ma Zhonghong, issued earlier by the District Court upon ICAC’s application, is still in effect. Ma was charged with two counts of conspiracy to defraud and one count of money laundering. Ma has been wanted by the ICAC after he failed to attend court on October 25, 2022.The present case stemmed from a corruption complaint referred to the ICAC by the Securities and Futures Commission (SFC). Upon completion of the ICAC investigation, four individuals taking part in the secret “backdoor listing” scheme were charged with conspiracy to defraud and money laundering.At the material time, Asia Resources was listed on the Main Board of the SEHK. After Chim Pui-chung became a substantial shareholder of Asia Resources in mid-October 2008, his son, Ricky Chim, was appointed as an executive director of Asia Resources on the following day, and served as chairman of its board of directors between December 19, 2008 and December 11, 2014.The court heard that in July 2013, Chim Pui-chung and Ricky Chim negotiated with Ma in private a “backdoor listing” agreement selling the control of Asia Resources to Ma. On the basis that the entire 100 per cent shareholding of Asia Resources would cost $300 million, the trio made an agreement for Ma to pay Chim Pui-chung a sum of about $210 million to control 70 to 75 per cent of the entire issued share capital of Asia Resources (the “backdoor listing” agreement).In order to execute the “backdoor listing” agreement, Ricky Chim, as the chairman of Asia Resources, chaired two board meetings in late July and early August 2013. At the meetings, directors of Asia Resources resolved and approved to proceed with the placing of new shares and the issuance of convertible notes to raise funds of over $550 million (capital-raising exercise). Ricky Chim, who voted on both occasions, declared that he did not have any interest in the capital-raising exercise and he had never disclosed the “backdoor listing” agreement to Asia Resources. The placing of new shares in the capital-raising exercise was completed in late July 2013.In mid-August and mid-September 2013, Asia Resources respectively published an announcement and a circular in relation to the issuance of convertible notes in the capital-raising exercise, stating that no directors and shareholders had a material interest in the issuance of convertible notes, and no shareholders were required to abstain from voting in the special general meeting concerned. At the special general meeting held on October 3, 2013, Chim Pui-chung voted for the issuance of convertible notes. The resolution was eventually passed by shareholders.The ICAC enquiries revealed that Chim Pui-chung received a total sum of $169 million from Ma pursuant to the “backdoor listing” agreement about a month after Asia Resources approved of the capital-raising exercise.Chim Pui-chung and Ricky Chim had concealed from the SEHK the purpose of the capital-raising exercise, which was to increase the entire issued share capital of Asia Resources, thereby facilitating the execution of the “backdoor listing” agreement, causing the SEHK to approve the publication of the announcements and circulars in relation to the capital-raising exercise by Asia Resources, the court heard.Between October 2013 and January 2014, co-defendant Wong followed the instruction of her employer, Ma, to deal with proceeds of indictable offence, namely convertible notes issued by Asia Resources in the principal amount of $42 million.The SEHK and the SFC rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutors Derek Wong and Ivan Shiu, assisted by ICAC officer Vivian Poon. 23
Jan 2025Ex-bank employee charged by ICAC admits bribery and fraud over client referrals to broker for mortgage loan applications with another bankA former employee of a bank, charged by the ICAC, today (January 23) admitted at the Kowloon City Magistrates’ Courts that she had accepted a bribe for referring a client to the proprietor of a lending referral agency without permission and arranged clients to apply for mortgage loans with another bank to defraud the latter of referral fees.Amy Chow Bik-sum, 49, former assistant customer service manager of OCBC Bank (Hong Kong) Limited (formerly known as OCBC Wing Hang Bank Limited) (OCBC), today pleaded guilty to one count of conspiracy for an agent to accept an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance; and one count of fraud, contrary to section 16A of the Theft Ordinance.Acting Principal Magistrate Mr Ko Wai-hung adjourned the case to February 10 for sentence, pending Chow’s background report. Chow was remanded in the custody of the Correctional Services Department.Co-defendants Yip Man-yee, 46, proprietor of The Capital Property (TCP); and Mak Miu-ling, 56, former deputy manager of Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia)), today pleaded not guilty to the charges. The case was scheduled for March 7 for a pre-trial review.At the material time, Chow was an assistant customer service manager of OCBC posted to its Tsim Sha Tsui branch while Mak was a deputy manager of ICBC (Asia) posted to its Ho Man Tin branch. The respective duties of Chow and Mak included handling of residential mortgage applications. Both banks would release agency referral fees to their appointed mortgage intermediaries for successful residential mortgage applications, but the relevant staff handling those applications, including Chow and Mak, were not entitled to any commissions or agency referral fees.Cybernetics Property Mortgage Limited (CPM) was an appointed mortgage intermediary of ICBC (Asia). For each successful mortgage application jointly procured with an agent, CPM would release 95 per cent of the agency referral fee released by ICBC (Asia) as a broker fee to the agent. As an agent of CPM in mortgage referral business, TCP was entitled to receive a broker fee from CPM for each successful mortgage application referred to ICBC (Asia).Chow admitted that between August 2019 and August 2021, she had referred two OCBC clients to then ICBC (Asia) employee, Mak, and the proprietor of TCP, Yip, for arranging mortgage loan applications with ICBC (Asia) without asking for OCBC’s permission.Chow further admitted that she had falsely represented to ICBC (Asia) that one of the two clients was referred by CPM to deceive ICBC (Asia) into paying a mortgage loan referral fee of $18,000 to CPM. She had also accepted a bribe of over $16,000 from Yip for referring the second client to TCP.TCP had received two broker fees of about $17,000 and about $32,000 respectively from CPM for referring the two clients, the court heard.OCBC did not allow its employees to refer mortgage loan applications of its clients to other individuals or institutions, and prohibited its employees from soliciting or accepting advantages from others in relation to OCBC’s business.OCBC, ICAC (Asia) and CPM rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Gary Chan. 22
Jan 2025Intermediary among five charged by ICAC over $6m SLG loan fraud by conspiracy to submit false payroll records of SMEAn intermediary, the operator and proprietor of a Small and Medium Enterprise (SME) engaging in jewellery business and two others were charged by the ICAC today (January 22) with conspiracy to defraud and conspiracy to launder crime proceeds, following a corruption investigation which revealed that the intermediary had allegedly advised the SME duo to submit false payroll records which induced a bank to grant two loans totalling $6 million under the Special 100% Loan Guarantee (SLG) scheme.The five defendants, aged between 37 and 56, are Li Kei-wing, then director cum shareholder of Corporate Good Doctor Company Limited; Michelle Choi Wai-shan and her elder brother Choi Wai-hang, respectively proprietor and operator of Superl Jade & Jewels Company (Superl Jade & Jewels); and two associates of Li Kei-wing, namely Chik Yiu-hang and Loy Tsz-man. They face two counts of conspiracy to defraud, contrary to Common Law; one count of dealing with property known or believed to represent proceeds of an indictable offence (conspiracy to commit money laundering), contrary to section 25(1) of the Organized and Serious Crimes Ordinance and section 159A of the Crimes Ordinance; and five alternative charges of money laundering.The five defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Friday (January 24) for mention. The prosecution will later make an application for transferring the case to the District Court for plea.The ICAC investigation arose from a corruption complaint, which subsequently revealed the illicit SLG loans fraud in the present case. SLG scheme was launched by HKMC Insurance Limited (HKMCI) in April 2020 to ease SMEs’ cash flow pressure under the pandemic. Loans approved by lenders were fully guaranteed by the government. At the material time of the present case, the maximum facility amount was the total amount of wages paid by an SME to its employees and its rental payments for 18 months, or $6 million. Applicants were required to provide the lenders with the relevant proofs.The Hongkong and Shanghai Banking Corporation Limited (HSBC) was one of the participating lenders under the scheme. After confirming an application received was legitimate, HSBC would forward the application to HKMCI for final review and approval to grant a guarantee.It is alleged that between late March and mid-April 2021, Li, Michelle Choi, Choi Wai-hang and Chik had conspired together to defraud HSBC and HKMCI by submitting false payroll records of Superl Jade & Jewels in respect of its SLG loan application, and falsely representing to HKMCI that the loan granted would be used to pay wages or provide working capital for business operations of the company, causing HSBC and HKMCI to approve a loan of $5 million to Superl Jade & Jewels.Between mid-April and late May 2021, Li, Michelle Choi and Choi Wai-hang had also allegedly conspired together to deceive HSBC and HKMCI into granting another loan of $1 million to Superl Jade & Jewels by similar fraudulent means.It is also alleged that the five defendants had conspired together to launder crime proceeds in mid-April 2021, after Superl Jade & Jewels was granted the first loan of $5 million. They had allegedly dealt with the loan, knowing that it represented proceeds of an indictable offence. Each of them also faces an alternative charge of money laundering for allegedly transferring the loan granted to Superl Jade & Jewels to their personal bank accounts.ICAC enquiries revealed that Michelle Choi was registered as the proprietor of Superl Jade & Jewels, but the company was operated and owned by her elder brother Choi Wai-hang and it had no employee. Investigation also revealed that in early 2021, Li allegedly suggested the Choi siblings to apply for SLG loans from HSBC with false employee information and Mandatory Provident Fund contribution records to secure a higher loan amount. He also assisted the duo in processing the relevant loan application documents.The HKMCI and HSBC had rendered full assistance to the ICAC during its investigation into the case. 21
Jan 2025Five employees of logistics company charged by ICAC for fraud over $4.5m service charges by concealing conflict of interestFive employees of a logistics company were charged by the ICAC today (January 21) for allegedly deceiving the company into paying service charges totalling over $4.5 million by concealing their interests in various light goods vehicles (LGVs) and arranging others to use those LGVs to take up delivery orders of the company.The five defendants, aged between 39 and 59, face four counts of conspiracy to defraud in total, contrary to Common Law. They were Or Chi-ho, then transportation manager of V-Logic Limited (V-Logic); Tam Lap-kuen and Canny Chan Ka-ming, respectively then and serving delivery team leader of V-Logic; and Ho Wai-man and Tang Weide, both then drivers of the company.The five defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Thursday (January 23) for mention. The prosecution will later make an application for transferring the case to the District Court for plea.V-Logic, which provides local delivery services, has a team of in-house drivers and another team of outsourced drivers taking up clients’ orders. Between November 2017 and November 2021, Or was promoted to transportation manager of V-Logic while Tam and Chan were delivery team leaders of the company. The trio were mainly responsible for hiring outsourced drivers and assigning delivery jobs of V-Logic to in-house and outsourced drivers. Ho and Tong were in-house drivers of the company.Two of the charges allege that Or, Tam and Chan had conspired together with an outsourced driver of V-Logic to induce the company to pay service charges totalling over $3.2 million by concealing from the company that two LGVs were owned or controlled by the trio and arranging others to register as outsourced drivers of the company and to use those LGVs to take up its delivery orders.Two other charges allege that the five defendants had conspired together with the outsourced driver to conceal Ho and Tang’s beneficial interest in two other LGVs from V-Logic and induced V-Logic to pay service charges totalling about $1.3 million by similar fraudulent means.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Or, Tam and Chan allegedly arranged an outsourced driver of V-Logic to purchase four LGVs and arranged the latter and another person to register as owners of the LGVs with the Transport Department for taking up the orders of V-Logic.Employees of V-Logic are prohibited from assigning the company’s delivery orders to any associated person or arranging any LGVs owned by them to take up its delivery orders. ICAC enquiries revealed that the four LGVs concerned were allegedly controlled by the five defendants, who had never disclosed to the company their interests in the vehicles. As a result, service charges totalling over $4.5 million were paid to the five defendants.V-Logic had rendered full assistance to the ICAC during its investigation into the case.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 arising in the workplace 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. 15
Jan 2025Then team leader of Three-Runway System Project’s subcontractor charged by ICAC for allegedly soliciting bribe from crane operatorA then team leader of a subcontractor of the Three-Runway System Project (3RS Project) of the Hong Kong International Airport was charged by the ICAC today (January 15) for allegedly soliciting a bribe of $100 to $200 per day from a crane operator for continuing his employment. The worker did not resort to bribery.Hui Wai-kwok, 38, then team leader of New Ocean Machine Co., Limited (New Ocean), faces one count of agent soliciting an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance. He was released on ICAC bail, pending his appearance at the West Kowloon Magistrates’ Courts on Friday (January 17) for plea.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. The defendant was a team leader of New Ocean responsible for leading a team of crane operators to work at the construction site of the 3RS Project. He had the authority to dismiss workers under his supervision.It is alleged that in early December 2022, the defendant had solicited a bribe of $100 to $200 per day from a worker under his supervision for assisting him to continue his employment with New Ocean.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the worker joined New Ocean in November 2022 at a daily wage of $1,400. He resigned from the company soon after the defendant made solicitation and did not pay bribe.New Ocean rendered full assistance to the ICAC during its investigation into the case.