Integrity Focus
Menu
Recent ICAC Cases Anti-Corruption Laws in Hong Kong Corruption Myths Cross-Boundary Business Operations Conflict of Interest
What is conflict of interest? Examples of conflict of interest Problems arising from conflict of interest How to handle conflict of interest? How well are we managing conflict of interest?
Ethical Decision MakingRecent ICAC Cases
10
Jan 2024Property officer charged by ICAC guilty of conspiring with renovation contractor to deceive IOThe ICAC had earlier charged a then property officer of a property management company and a renovation contractor as a corruption investigation revealed that they had conspired together to deceive the Incorporated Owners (IO) of a private residential building in To Kwa Wan into awarding a water pipe replacement project to the contractor by using false quotations. The property officer was today (January 10) convicted of conspiracy to defraud at the Kowloon City Magistrates’ Courts while the renovation contractor, who pleaded guilty earlier, was jailed for two months and two weeks.Lau Cheuk-yan, 42, former property officer of Harbourfield Property Management Limited (Harbourfield), was today convicted of one count of conspiracy to defraud, contrary to the Common Law. She was granted bail until January 24 for sentence, pending her background report.Co-defendant Chan Kam-wah, 57, director-cum-shareholder of Hing Fat Building Maintenance Company Limited (Hing Fat), earlier pleaded guilty to the conspiracy to defraud charge; and three counts of possessing a false instrument, contrary to section 75(2) of the Crimes Ordinance.Magistrate Mr Philip Chan Chee-fai remarked that the court had to mete out a custodial sentence given the serious nature of the case involving false instruments.At the material time, Harbourfield provided property management service to Sunny Court, a private residential building in To Kwa Wan. Staff of Harbourfield were required to source at least three quotations from its approved contractors before conducting any renovation works worth between $10,000 and $200,000.In 2021, Harbourfield conducted a quotation exercise for the Sunny Court to select a renovation contractor for a water pipe replacement project. The IO of Sunny Court received three quotations via Lau. In May 2021, the project was awarded to Hing Fat, which offered the lowest bid of $70,000.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the two engineering companies concerned were not approved contractors of Harbourfield and they had never submitted the two quotations. But Lau and Chan conspired together to defraud the IO of Sunny Court by falsely representing that the two quotations were genuine. It was also revealed that Chan possessed three other false quotations purportedly issued by one of the two engineering companies to another residential building, a commercial building and a shopping mall.Harbourfield and the IO of Sunny Court had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Steven Liu, assisted by ICAC officer Potina Koo. 09
Jan 2024Newspaper’s sales rep duo admit bribing supervisor for commissions over event sponsorshipsTwo sales representatives of the advertising department of a newspaper company, charged by the ICAC, admitted at the District Court today (January 9) their offering of bribes totalling about $88,000 to a supervisor after receiving commissions of a total of over $260,000 for securing event sponsorships.Lee Kwok-wai, 50, former sales representatives of Hong Kong Commercial Daily (HKCD); and Ngo Kam-fai, 44, sales representatives of HKCD, respectively pleaded guilty to four counts and one count of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance (POBO).Lee further admitted one count of conspiracy for an agent to solicit an advantage, contrary to Section 9(1)(a) of the POBO and Section 159A of the Crimes Ordinance. Two other similar charges against him were left on file at the District Court.Judge Mr Clement Lee Hing-nin adjourned the case to March 6 for mention, and granted the duo bail.At the material time, Lee and Ngo were sales representatives of the advertising department of HKCD responsible for sourcing sponsors for various events organised by HKCD. Upon securing a sponsorship, they were entitled to 10 per cent of the sponsorship amount as commission. An assistant general manager of the advertising department would assist them in securing sponsorships. The assistant general manager would receive bonuses after each event or at the end of the year, subject to the profits made, but he was not entitled to share the commissions of the duo. Meanwhile, HKCD did not allow its staff to solicit or accept any advantage in relation to its business.The court heard that between November 2019 and November 2021, Lee and Ngo were responsible for sourcing sponsorships for four events organised by HKCD. The duo eventually sourced sponsorships totalling over $2.6 million. Afterwards Lee and Ngo respectively received commissions of over $240,000 and $17,000.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the assistant general manager accompanied Lee and Ngo to meet various sponsors. The duo admitted that after securing the sponsorships, they respectively offered four bribes totalling about $83,000 and a bribe of $5,000 to the assistant general manager upon the latter’s request.Lee further admitted that between September 2021 and February 2022, he conspired together with the assistant general manager to solicit a bribe of $5,000 from another sales representative who rejected the request. The sales representative was entitled to a commission of $17,800 for securing sponsorships totalling $178,000 in one of the events of HKCD.HKCD had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Acting Senior Public Prosecutor Jason Lau, assisted by ICAC officer Rita Li.Daniel Wu Hang-chi, 43, the assistant general manager concerned, was earlier charged by the ICAC with bribery. No plea was entered and his case was adjourned to February 29 for mention. 28
Dec 2023Son of property buyer in $8m mortgage loan fraud case charged by ICACThe ICAC had earlier charged a property buyer with fraud after its corruption investigation revealed that the buyer had allegedly induced a bank not to demand repayment of a mortgage loan of over $8 million granted with a loan-to-value (LTV) ratio of 80 per cent for meeting the owner-occupied requirement by concealing that the property was leased out. Upon further legal advice from the Department of Justice, the buyer’s son was charged yesterday (December 27).Lau Hong-chit, 23, faces one count of fraud, contrary to Section 16A of the Theft Ordinance. He was released on ICAC bail, pending his appearance in the Eastern Magistrates’ Courts tomorrow (December 29) for mention.According to the guidelines issued by the Hong Kong Monetary Authority, banks are required to comply with the LTV ratio requirement on owner-occupied residential mortgage lending. At the material time, China CITIC Bank International Limited (CNCBI) was a participating bank in the mortgage insurance programme of the HKMC Insurance Limited (HKMCI) (the Programme), which provided a mortgage loan with an LTV ratio of up to 80 per cent for a self-used private residential property valued between $8 million and $10 million.In late February 2020, Lau’s mother, Wong Hin-ning, purchased a private residential property in Ho Man Tin at $9.98 million on behalf of Lau when he was abroad. A few days later, Wong and Lau applied for a mortgage loan with an LTV of 80 per cent with CNCBI under the Programme and declared that the property would be occupied by the duo.Wong and Lau signed a declaration on the mortgage loan application form that they were under an obligation to notify CNCBI immediately if the property was no longer occupied by them. The bank approved the application and granted a mortgage loan of over $8 million to Wong and Lau in late June 2020.It is alleged that between August 2020 and September 2021, Lau and Wong leased out the property to a tenant, but they failed to inform CNCBI of a change in the occupancy status of the property, and with intent to defraud, induced CNCBI not to demand repayment of the mortgage loan granted to the duo in relation to the property or impose other conditions, including an increase in the interest rate.Wong, 48, insurance agent, was charged in October this year with two counts of fraud in respect of the above concealment and a subsequent rental transaction. No plea was entered when she appeared in the District Court today (December 28). Her case was adjourned to March 7, 2024 for mention.CNCBI and the HKMCI have rendered full assistance to the ICAC during its investigation into the case. 27
Dec 2023Supplier charged by ICAC in 3RS Project’s sub-contracts corruption cases jailed for 14 months over stealing $350,000In the course of ICAC’s investigation into corruption cases in respect of sub-contracts of the Three-Runway System Project (3RS Project) of the Hong Kong International Airport, it was revealed that a reclamation sand supplier had been allegedly involved in bribery and other offences. One of the operators of the supplier was jailed for 14 months after admitting at the Eastern Magistrates’ Courts today (December 27) that he had stolen $350,000 from the company.Wong Bun-hon, 63, operator of Joint Field Engineering Limited (JFEL), pleaded guilty to three amended charges of theft, contrary to Section 9 of the Theft Ordinance. The prosecution withdrew two amended charges of handling stolen goods, contrary to Section 24 of the Theft Ordinance, against his son Wong Yu-hang, 28, director-cum-shareholder of JFEL.In sentencing, Deputy Magistrate Ms Alison Kao Lai-ying remarked that Wong Bun-hon had breached the trust placed in him, warranting a jail term of 16 months as the stolen sum amounted to $350,0000. His sentence was reduced to 14 months’ imprisonment, taking into account his voluntary full repayment to the company.The court heard that JFEL was a supplier of sand for reclamation works of the 3RS Project. Wong Bun-hon was one of the directors and shareholders of JFEL. He resigned as JFEL’s director in mid-May 2020 and subsequently sold all the shares to Junde Group Company Limited (Junde). He remained to be responsible for JFEL’s daily management and was the sole account signatory to a bank account of JFEL.Wong Bun-hon’s son Wong Yu-hang was employed by JFEL in July 2019 and handled the accounts and financial matters of the company. He was required to send a record of JFEL’s monthly expenses to Junde every month.Between July and December 2020, Wong Bun-hon had signed three cheques to withdraw three sums totalling $350,000 from the bank account of JFEL while Wong Yu-hang did not report the three transactions to Junde.ICAC investigation revealed that Wong Bun-hon withdrew the three sums of money for payment of family expenses. Junde prohibited staff of JFEL from embezzling company funds, and had never consented to Wong Bun-hon or Wong Yu-hang using company funds for personal purposes.The ICAC arrested various people on suspicion of corruption in operation “Blizzard” in August 2022. After conducting intensive investigations, 10 people were charged with multiple counts of bribery, money laundering and theft offences in five cases between February and April this year. The defendants included senior staff members of the Airport Authority Hong Kong (AAHK) and representatives of sub-contractor of the 3RS Project. The total bribe money involved in the cases had amounted to around $7.7 million, concerning works sub-contracts and materials purchase orders worth over $260 million in total.Apart from being sentenced for theft in the present case today, Wong Bun-hon, together with eight other defendants in the remaining four cases, will appear in the District Court in March 15 next year for mention.The AAHK and Junde had rendered full assistance to the ICAC during its investigation into the cases.The prosecution was today represented by prosecuting counsel Marco Li, assisted by ICAC officer Jessie Fu. 21
Dec 2023Ex-bank manager duo admit defrauding investors of JPY400m revealed in ICAC graft probeAn ICAC corruption investigation earlier revealed that four people had conspired with others to deceive Japanese investors into investing over JPY400 million (about HK$28.4 million) in a number of companies which claimed to take part in investment projects in Africa by falsely representing that those companies’ bank accounts held asset totalling over HK$37 billion, and by using false bank documents. Two of the former bank managers, charged by the Commission, today (December 21) pleaded guilty to conspiracy to defraud at the District Court.The two former relationship managers of Standard Chartered Bank (Hong Kong) Limited (Standard Chartered Bank), Woo Man-ho and Chan Tak-ching, both 36, pleaded guilty to a total of four counts of conspiracy to defraud, contrary to the Common Law. Three other similar charges against the duo were left on file at the District Court.Judge Mr Clement Lee Hing-nin adjourned the case to August 22 next year for sentence. Both Woo and Chan were granted bail.The court heard that at the material time, Woo and Chan were relationship managers of Standard Chartered Bank respectively working at its business banking department and priority banking department. The bank would issue documents to confirm the balance of a client’s account held with the bank upon request, but the duo were not authorised to sign and issue those documents.Woo and Chan admitted that between January 2015 and September 2016, they had conspired with another then relationship manager of Standard Chartered Bank, a self-employed financial consultant and four foreign nationals to defraud various Japanese investors to invest in ADF Capital Limited (ADF) and a number of companies by using false proof of fund letters and corporate refund promissory notes (CRPNs) purportedly signed by Woo and Chan, and issued by Standard Chartered Bank.The four foreign nationals involved were two shareholders-cum-directors of ADF, respectively a Zambian man and a Korean man; a Thai man who was Chan’s client; and a Japanese woman who was a company director.Woo admitted that he had conspired with the Zambian man to falsely represent that the man’s company had funds of US$1.5 billion (about HK$11.6 billion) available for investments in Africa by issuing a false proof of fund letter.Meanwhile, Woo and Chan admitted that they had conspired with the self-employed financial consultant and the Thai man to falsely represent that the Thai man had asset of 3.3 billion euros (about HK$25.5 billion) in the bank account held with Standard Chartered Bank, and to issue eight false proof of fund letters.The duo further admitted that they had conspired with the relationship manager of Standard Chartered Bank, the self-employed financial consultant and three of the foreign nationals to falsely represent that Standard Chartered Bank was the guarantor of ADF which undertook to pay the relevant investors by issuing four false CRPNs.The four CRPNs involved promised returns totalling US$7.2 million (over HK$56 million). As a result of the false representations, various Japanese investors were deceived into making investments totalling at least JPY400 million (about HK$28.4 million) to ADF and a number of companies involved in this case.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Standard Chartered Bank had never held the abovementioned asset on behalf of the Thai man, while the Zambian man’s company had never held any bank account with the bank.Co-defendants Leung Ho-yin, 37, former relationship manager of Standard Chartered Bank; and Law Man-fai, 49, self-employed financial consultant; earlier pleaded not guilty to two of the abovementioned conspiracy to defraud charges. Another co-defendant Catherine Kum Kit-ching, 55, manager of ADF, earlier pleaded not guilty to one count of conspiracy to deal with property known or believed to represent proceeds of indictable offence. The trial against the trio was set for July 2, 2024.Standard Chartered Bank had rendered full assistance to the ICAC during its investigation into the case. The ICAC does not rule out further law enforcement actions against other persons involved in the case.The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Janice Chan.
Jan 2024Property officer charged by ICAC guilty of conspiring with renovation contractor to deceive IOThe ICAC had earlier charged a then property officer of a property management company and a renovation contractor as a corruption investigation revealed that they had conspired together to deceive the Incorporated Owners (IO) of a private residential building in To Kwa Wan into awarding a water pipe replacement project to the contractor by using false quotations. The property officer was today (January 10) convicted of conspiracy to defraud at the Kowloon City Magistrates’ Courts while the renovation contractor, who pleaded guilty earlier, was jailed for two months and two weeks.Lau Cheuk-yan, 42, former property officer of Harbourfield Property Management Limited (Harbourfield), was today convicted of one count of conspiracy to defraud, contrary to the Common Law. She was granted bail until January 24 for sentence, pending her background report.Co-defendant Chan Kam-wah, 57, director-cum-shareholder of Hing Fat Building Maintenance Company Limited (Hing Fat), earlier pleaded guilty to the conspiracy to defraud charge; and three counts of possessing a false instrument, contrary to section 75(2) of the Crimes Ordinance.Magistrate Mr Philip Chan Chee-fai remarked that the court had to mete out a custodial sentence given the serious nature of the case involving false instruments.At the material time, Harbourfield provided property management service to Sunny Court, a private residential building in To Kwa Wan. Staff of Harbourfield were required to source at least three quotations from its approved contractors before conducting any renovation works worth between $10,000 and $200,000.In 2021, Harbourfield conducted a quotation exercise for the Sunny Court to select a renovation contractor for a water pipe replacement project. The IO of Sunny Court received three quotations via Lau. In May 2021, the project was awarded to Hing Fat, which offered the lowest bid of $70,000.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the two engineering companies concerned were not approved contractors of Harbourfield and they had never submitted the two quotations. But Lau and Chan conspired together to defraud the IO of Sunny Court by falsely representing that the two quotations were genuine. It was also revealed that Chan possessed three other false quotations purportedly issued by one of the two engineering companies to another residential building, a commercial building and a shopping mall.Harbourfield and the IO of Sunny Court had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Steven Liu, assisted by ICAC officer Potina Koo. 09
Jan 2024Newspaper’s sales rep duo admit bribing supervisor for commissions over event sponsorshipsTwo sales representatives of the advertising department of a newspaper company, charged by the ICAC, admitted at the District Court today (January 9) their offering of bribes totalling about $88,000 to a supervisor after receiving commissions of a total of over $260,000 for securing event sponsorships.Lee Kwok-wai, 50, former sales representatives of Hong Kong Commercial Daily (HKCD); and Ngo Kam-fai, 44, sales representatives of HKCD, respectively pleaded guilty to four counts and one count of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance (POBO).Lee further admitted one count of conspiracy for an agent to solicit an advantage, contrary to Section 9(1)(a) of the POBO and Section 159A of the Crimes Ordinance. Two other similar charges against him were left on file at the District Court.Judge Mr Clement Lee Hing-nin adjourned the case to March 6 for mention, and granted the duo bail.At the material time, Lee and Ngo were sales representatives of the advertising department of HKCD responsible for sourcing sponsors for various events organised by HKCD. Upon securing a sponsorship, they were entitled to 10 per cent of the sponsorship amount as commission. An assistant general manager of the advertising department would assist them in securing sponsorships. The assistant general manager would receive bonuses after each event or at the end of the year, subject to the profits made, but he was not entitled to share the commissions of the duo. Meanwhile, HKCD did not allow its staff to solicit or accept any advantage in relation to its business.The court heard that between November 2019 and November 2021, Lee and Ngo were responsible for sourcing sponsorships for four events organised by HKCD. The duo eventually sourced sponsorships totalling over $2.6 million. Afterwards Lee and Ngo respectively received commissions of over $240,000 and $17,000.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the assistant general manager accompanied Lee and Ngo to meet various sponsors. The duo admitted that after securing the sponsorships, they respectively offered four bribes totalling about $83,000 and a bribe of $5,000 to the assistant general manager upon the latter’s request.Lee further admitted that between September 2021 and February 2022, he conspired together with the assistant general manager to solicit a bribe of $5,000 from another sales representative who rejected the request. The sales representative was entitled to a commission of $17,800 for securing sponsorships totalling $178,000 in one of the events of HKCD.HKCD had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Acting Senior Public Prosecutor Jason Lau, assisted by ICAC officer Rita Li.Daniel Wu Hang-chi, 43, the assistant general manager concerned, was earlier charged by the ICAC with bribery. No plea was entered and his case was adjourned to February 29 for mention. 28
Dec 2023Son of property buyer in $8m mortgage loan fraud case charged by ICACThe ICAC had earlier charged a property buyer with fraud after its corruption investigation revealed that the buyer had allegedly induced a bank not to demand repayment of a mortgage loan of over $8 million granted with a loan-to-value (LTV) ratio of 80 per cent for meeting the owner-occupied requirement by concealing that the property was leased out. Upon further legal advice from the Department of Justice, the buyer’s son was charged yesterday (December 27).Lau Hong-chit, 23, faces one count of fraud, contrary to Section 16A of the Theft Ordinance. He was released on ICAC bail, pending his appearance in the Eastern Magistrates’ Courts tomorrow (December 29) for mention.According to the guidelines issued by the Hong Kong Monetary Authority, banks are required to comply with the LTV ratio requirement on owner-occupied residential mortgage lending. At the material time, China CITIC Bank International Limited (CNCBI) was a participating bank in the mortgage insurance programme of the HKMC Insurance Limited (HKMCI) (the Programme), which provided a mortgage loan with an LTV ratio of up to 80 per cent for a self-used private residential property valued between $8 million and $10 million.In late February 2020, Lau’s mother, Wong Hin-ning, purchased a private residential property in Ho Man Tin at $9.98 million on behalf of Lau when he was abroad. A few days later, Wong and Lau applied for a mortgage loan with an LTV of 80 per cent with CNCBI under the Programme and declared that the property would be occupied by the duo.Wong and Lau signed a declaration on the mortgage loan application form that they were under an obligation to notify CNCBI immediately if the property was no longer occupied by them. The bank approved the application and granted a mortgage loan of over $8 million to Wong and Lau in late June 2020.It is alleged that between August 2020 and September 2021, Lau and Wong leased out the property to a tenant, but they failed to inform CNCBI of a change in the occupancy status of the property, and with intent to defraud, induced CNCBI not to demand repayment of the mortgage loan granted to the duo in relation to the property or impose other conditions, including an increase in the interest rate.Wong, 48, insurance agent, was charged in October this year with two counts of fraud in respect of the above concealment and a subsequent rental transaction. No plea was entered when she appeared in the District Court today (December 28). Her case was adjourned to March 7, 2024 for mention.CNCBI and the HKMCI have rendered full assistance to the ICAC during its investigation into the case. 27
Dec 2023Supplier charged by ICAC in 3RS Project’s sub-contracts corruption cases jailed for 14 months over stealing $350,000In the course of ICAC’s investigation into corruption cases in respect of sub-contracts of the Three-Runway System Project (3RS Project) of the Hong Kong International Airport, it was revealed that a reclamation sand supplier had been allegedly involved in bribery and other offences. One of the operators of the supplier was jailed for 14 months after admitting at the Eastern Magistrates’ Courts today (December 27) that he had stolen $350,000 from the company.Wong Bun-hon, 63, operator of Joint Field Engineering Limited (JFEL), pleaded guilty to three amended charges of theft, contrary to Section 9 of the Theft Ordinance. The prosecution withdrew two amended charges of handling stolen goods, contrary to Section 24 of the Theft Ordinance, against his son Wong Yu-hang, 28, director-cum-shareholder of JFEL.In sentencing, Deputy Magistrate Ms Alison Kao Lai-ying remarked that Wong Bun-hon had breached the trust placed in him, warranting a jail term of 16 months as the stolen sum amounted to $350,0000. His sentence was reduced to 14 months’ imprisonment, taking into account his voluntary full repayment to the company.The court heard that JFEL was a supplier of sand for reclamation works of the 3RS Project. Wong Bun-hon was one of the directors and shareholders of JFEL. He resigned as JFEL’s director in mid-May 2020 and subsequently sold all the shares to Junde Group Company Limited (Junde). He remained to be responsible for JFEL’s daily management and was the sole account signatory to a bank account of JFEL.Wong Bun-hon’s son Wong Yu-hang was employed by JFEL in July 2019 and handled the accounts and financial matters of the company. He was required to send a record of JFEL’s monthly expenses to Junde every month.Between July and December 2020, Wong Bun-hon had signed three cheques to withdraw three sums totalling $350,000 from the bank account of JFEL while Wong Yu-hang did not report the three transactions to Junde.ICAC investigation revealed that Wong Bun-hon withdrew the three sums of money for payment of family expenses. Junde prohibited staff of JFEL from embezzling company funds, and had never consented to Wong Bun-hon or Wong Yu-hang using company funds for personal purposes.The ICAC arrested various people on suspicion of corruption in operation “Blizzard” in August 2022. After conducting intensive investigations, 10 people were charged with multiple counts of bribery, money laundering and theft offences in five cases between February and April this year. The defendants included senior staff members of the Airport Authority Hong Kong (AAHK) and representatives of sub-contractor of the 3RS Project. The total bribe money involved in the cases had amounted to around $7.7 million, concerning works sub-contracts and materials purchase orders worth over $260 million in total.Apart from being sentenced for theft in the present case today, Wong Bun-hon, together with eight other defendants in the remaining four cases, will appear in the District Court in March 15 next year for mention.The AAHK and Junde had rendered full assistance to the ICAC during its investigation into the cases.The prosecution was today represented by prosecuting counsel Marco Li, assisted by ICAC officer Jessie Fu. 21
Dec 2023Ex-bank manager duo admit defrauding investors of JPY400m revealed in ICAC graft probeAn ICAC corruption investigation earlier revealed that four people had conspired with others to deceive Japanese investors into investing over JPY400 million (about HK$28.4 million) in a number of companies which claimed to take part in investment projects in Africa by falsely representing that those companies’ bank accounts held asset totalling over HK$37 billion, and by using false bank documents. Two of the former bank managers, charged by the Commission, today (December 21) pleaded guilty to conspiracy to defraud at the District Court.The two former relationship managers of Standard Chartered Bank (Hong Kong) Limited (Standard Chartered Bank), Woo Man-ho and Chan Tak-ching, both 36, pleaded guilty to a total of four counts of conspiracy to defraud, contrary to the Common Law. Three other similar charges against the duo were left on file at the District Court.Judge Mr Clement Lee Hing-nin adjourned the case to August 22 next year for sentence. Both Woo and Chan were granted bail.The court heard that at the material time, Woo and Chan were relationship managers of Standard Chartered Bank respectively working at its business banking department and priority banking department. The bank would issue documents to confirm the balance of a client’s account held with the bank upon request, but the duo were not authorised to sign and issue those documents.Woo and Chan admitted that between January 2015 and September 2016, they had conspired with another then relationship manager of Standard Chartered Bank, a self-employed financial consultant and four foreign nationals to defraud various Japanese investors to invest in ADF Capital Limited (ADF) and a number of companies by using false proof of fund letters and corporate refund promissory notes (CRPNs) purportedly signed by Woo and Chan, and issued by Standard Chartered Bank.The four foreign nationals involved were two shareholders-cum-directors of ADF, respectively a Zambian man and a Korean man; a Thai man who was Chan’s client; and a Japanese woman who was a company director.Woo admitted that he had conspired with the Zambian man to falsely represent that the man’s company had funds of US$1.5 billion (about HK$11.6 billion) available for investments in Africa by issuing a false proof of fund letter.Meanwhile, Woo and Chan admitted that they had conspired with the self-employed financial consultant and the Thai man to falsely represent that the Thai man had asset of 3.3 billion euros (about HK$25.5 billion) in the bank account held with Standard Chartered Bank, and to issue eight false proof of fund letters.The duo further admitted that they had conspired with the relationship manager of Standard Chartered Bank, the self-employed financial consultant and three of the foreign nationals to falsely represent that Standard Chartered Bank was the guarantor of ADF which undertook to pay the relevant investors by issuing four false CRPNs.The four CRPNs involved promised returns totalling US$7.2 million (over HK$56 million). As a result of the false representations, various Japanese investors were deceived into making investments totalling at least JPY400 million (about HK$28.4 million) to ADF and a number of companies involved in this case.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Standard Chartered Bank had never held the abovementioned asset on behalf of the Thai man, while the Zambian man’s company had never held any bank account with the bank.Co-defendants Leung Ho-yin, 37, former relationship manager of Standard Chartered Bank; and Law Man-fai, 49, self-employed financial consultant; earlier pleaded not guilty to two of the abovementioned conspiracy to defraud charges. Another co-defendant Catherine Kum Kit-ching, 55, manager of ADF, earlier pleaded not guilty to one count of conspiracy to deal with property known or believed to represent proceeds of indictable offence. The trial against the trio was set for July 2, 2024.Standard Chartered Bank had rendered full assistance to the ICAC during its investigation into the case. The ICAC does not rule out further law enforcement actions against other persons involved in the case.The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Janice Chan.