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Dec 2024Two imported team leaders charged by ICAC with HK$6m bribery over exploitation of Three-Runway System Project workers, subcontractor duo wantedFollowing the receipt of corruption complaints this year alleging corruption and exploitation involving imported workers, the ICAC conducted a thorough investigation and revealed that two imported team leaders of a subcontractor of the Three-Runway System Project (3RS Project) of the Hong Kong International Airport had allegedly collected bribes totalling over HK$6 million from 58 imported workers in relation to their employment. The two team leaders were charged with bribery today (December 19) while the operator and a manager of the subcontractor were wanted by the ICAC.An ICAC spokesperson notes that the Commission has zero tolerance for corruption. If construction workers are asked to pay bribes in exchange for their employment, they should reject and report to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366. To enhance imported workers’ understanding of Hong Kong’s anti-corruption laws, the ICAC would arrange corruption prevention talks for them within eight weeks of their arrival and make use of different channels to disseminate anti-corruption. Additionally, the ICAC would continue to collaborate with the Development Bureau (DEVB) and other stakeholders to avoid similar crimes revealed in the present case.The two team leaders, Wang Haidong and Wang Jiaqiang, aged 35 and 23 respectively, were both imported workers employed by the Joint Venture of Beijing Urban Construction Group Company Limited and Chevalier (Construction) Company Limited (Beijing Urban Construction-Chevalier JV). They face one count of conspiracy for agents to accept advantages, contrary to contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance. The duo were released on ICAC bail, pending their appearance at the West Kowloon Magistrates’ Courts tomorrow (December 20) for mention.At the material time, Beijing Urban Construction-Chevalier JV was the main contractor of the third runway concourse and apron works of the 3RS Project. Zhongyi Hong Kong Limited (Zhongyi HK) was one of its subcontractors. Due to shortage of manpower in the construction industry, Beijing Urban Construction-Chevalier JV employed imported workers for subcontractors at a monthly salary of HK$31,200 or HK$37,800 through the Development Bureau’s Labour Importation Scheme for Construction Sector.Zhongyi HK was involved in the recruitment of workers conducted by Beijing Urban Construction-Chevalier JV in the Mainland. Since October 2023, team leaders Wang Haidong and Wang Jiaqiang as well as other imported workers were employed in batches by Beijing Urban Construction-Chevalier JV, which prohibited its employees or agents from soliciting or accepting any advantages from others in relation to its business and affairs.It is alleged that between November 2023 and June 2024, Wang Haidong and Wang Jiaqiang had conspired with the operator cum major shareholder of Zhongyi HK, Yan Lizhong, and its human resources manager, Hu Weida, to accept bribes totalling over HK$6 million from 58 imported workers for assisting them to secure and continue their employment with Beijing Urban Construction-Chevalier JV.The ICAC enquiries revealed that Yan and Hu had allegedly told the workers before they sign employment contracts with Beijing Urban Construction-Chevalier JV that they were only entitled to a monthly salary of RMB10,000 to RMB20,000, and those not acceding to the arrangement would not be recruited. The workers worried about losing the job opportunities and reluctantly acceded to the arrangement.Investigation also revealed that the workers surrendered the whole sum of their salaries, i.e. HK$31,200 or HK$37,800, transferred to their bank accounts in Hong Kong by Beijing Urban Construction-Chevalier JV to Zhongyi HK through the arrangement made by Wang Haidong and Wang Jiaqiang. Monthly salaries of RMB10,000 to RMB20,000 were then deposited into workers’ bank accounts in the Mainland.Upon receipt of the relevant corruption complaints this year, the ICAC took an immediate enforcement action and arrested Wang Haidong and Wang Jiaqiang this June, curbing the bribery scam which exploited imported labours.In addition, warrants for the arrest of Yan Lizhong, 52, operator cum major shareholder of Zhongyi HK; and Hu Weida, 50, human resources manager of Zhongyi HK, were issued by a Magistrate upon the application made by the ICAC yesterday (December 18).The DEVB, the Airport Authority Hong Kong and Beijing Urban Construction-Chevalier JV rendered full assistance to the ICAC during its investigation into the case. 13
Dec 2024Yuen Long small house ‘Ding Rights’ cases: Two applicants charged by ICAC with conspiracy to defraud Lands Department each jailed for one yearThe ICAC had earlier charged 11 people, namely the operator of a small house developer, a village representative and small house applicants, for conspiring together to deceive the Lands Department into granting various building licenses for a small house estate development project in Yuen Long by transferring the “Ding Rights” concerned. Two of the small house applicants each received a one-year jail term at the Tuen Mun Magistrates’ Courts today (December 13).Two small house applicants, Choi Wai-sang, 63, and Jimmy Tang Kiu-chin, 74, earlier each pleaded guilty to one count of conspiracy to defraud, contrary to the Common Law.In sentencing, Acting Principal Magistrate Mr Daniel Tang Siu-hung remarked that the offences involved in the present cases were serious in nature. By selling their “Ding Rights”, the defendants defrauded the government and exploited land use, warranting custodial sentences.Under the New Territories Small House Policy, every male indigenous inhabitant of the New Territories aged 18 or above may exercise his “Ding Right” once and apply to the Lands Department for building a small house within a recognised village of the New Territories for his own occupation. A “Ding Right” is not transferrable.The court heard that between February and June 2006, Choi and Tang respectively made an application to the Lands Department for building a small house in Shui Tsiu San Tsuen in Yuen Long for their own occupation. They claimed that they were the respective sole legal and registered owner of the lots of land concerned, had never entered into any agreements with others to transfer or otherwise deal with their lots of land or relevant interests, and had no intention to sell their “Ding Rights” to other individuals or developers. The Lands Department subsequently granted the building licenses to the duo.The ICAC investigation arose from a corruption complaint. Enquiries revealed that since November 1991, a number of individuals, including Choi and Tang, had applied for building small houses in Shui Tsiu San Tsuen. The small houses were subsequently sold to members of the public by a developer under the name of a private estate, and each small house was sold at market price ranging from $9 to $13 million. The small houses of Choi and Tang were respectively sold in 2015 and 2017. The developer concerned received over $1,000 million for the sale of 115 small houses in the private estate.ICAC enquiries also revealed that since the 1990s, an indigenous inhabitant representative and other middlemen started the development of the estate project in Shui Tsiu San Tsuen by purchasing “Ding Rights” from indigenous inhabitants of Yuen Long. Choi and Tang had conspired with the middlemen to sell their “Ding Rights” at $100,000 each, totalling $200,000.Later in about March 2005, a developer entered into an agreement with the indigenous inhabitant representative and appointed the latter as its trustee to jointly develop the small house project. The indigenous inhabitant representative and the middlemen then continued to purchase more “Ding Rights” from indigenous inhabitants and arranged for them to apply for building licences to build small houses in Shui Tsiu San Tsuen.The Lands Department offered full assistance to the ICAC during its investigation into the cases. The prosecution was today represented by ICAC officer Chris Lai.Two individuals implicated in the scam, namely Edward Wong Kwong-wing, 75, operator of Wing Smart Construction Limited, and Ching Chan-ming, 67, indigenous inhabitant representative of Shui Tsiu San Tsuen, were earlier jointly charged by the ICAC in another case with one count of conspiracy to defraud. Their case is set for trial at the District Court on February 10, 2025.The ICAC also charged seven other small house applicants, aged between 43 and 74, in separate cases. The defendants are Wong Kwun-sing, Chan Chi-ming, Chan Wing-kin, Leung Kam-yick, Lung Fok-ye, Yeung Kai-kwong and Lok Tin-lung. Their cases are adjourned to January 17 next year for plea. 13
Dec 2024Three site team leaders charged by ICAC for accepting bribes of $220,000 from Third Runway Project’s workers by blackmailThe ICAC today (December 13) charged three then site team leaders of a sub-contractor of the Third Runway Project of the Hong Kong International Airport (Third Runway Project) for allegedly soliciting and accepting bribes totalling over $220,000 from seven carpenters by blackmail.He Yuchuan, 56; Chow Kwai-fai, 50; and Ye Zhifu, 57, all then site team leaders for carpentry works of MLife Engineering Limited (MEL), face a total of 15 charges in two cases – 11 counts of agent accepting an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance; and four of blackmail, contrary to section 23(1) of the Theft Ordinance.The defendants were released on ICAC bail, pending the trio’s appearance at the West Kowloon Magistrates’ Courts next Tuesday (December 17) for plea.An ICAC spokesperson urges construction workers not to tolerate corruption. If they are asked to pay bribes in exchange for their employment, they should reject and report to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366.At the material time, MEL was a sub-contractor of the Third Runway Project responsible for recruiting construction workers to conduct various works. The three defendants, being site team leaders, had the authority to assign work to two teams of carpenters working at the project’s construction site. MEL did not allow any employees to solicit or accept any advantages from other employees for assisting the latter to secure their employment with the company.In the first case which took place between September 2020 and January 2022, He and Chow had allegedly demanded bribes ranging from $100 to $350 per working day from four carpenters under his supervision, menacing to terminate the workers’ employment should they refuse to accede to the request. The duo subsequently accepted bribes totalling over $200,000 from the four workers.In the second case, it is alleged that Ye had accepted bribes totalling over $20,000 and six cartons of cigarettes from three carpenters between February and June 2022. The carpenters worried about losing their job opportunities and reluctantly acceded to pay bribes and offer cigarettes to the defendants.The Airport Authority Hong Kong, the relevant main contractor SAPR JV and MEL rendered full assistance to the ICAC during its investigation into the cases. 12
Dec 2024Property buyer charged by ICAC gets 14 months’ jail for mortgage loan fraud, $700,000 income from letting confiscatedThe ICAC had earlier charged a property buyer for inducing 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 by concealing the property was leased out and making false representation that the owner-occupied requirement was met. A Deputy Judge today (December 12) imposed a 14 months’ jail term on the defendant at the District Court and ordered to confiscate the income from letting the property totalling $700,000.Wong Hin-ning, 49, insurance agent, earlier pleaded guilty to two counts of fraud, contrary to section 16A of the Theft Ordinance.In sentencing, Deputy Judge Bernard Chung remarked that the case was serious in nature. He took a starting point of 30 months’ imprisonment and reduced the jail term to 14 months having considered the defendant’s guilty plea and other mitigating factors.The Deputy Judge also approved the prosecution’s application for confiscation order, and ordered to confiscate from the defendant crime proceeds of $700,000, being the income from letting the property in the present case. The defendant is required to satisfy the confiscation order by December 16, failing which she will have to serve an additional term of imprisonment of 20 months.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) 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.The court heard that, in late February 2020, the defendant purchased a private residential property in Ho Man Tin at $9.98 million on behalf of her son who was abroad at that time. A few days later, she applied for a mortgage loan with an LTV of 80 per cent with CNCBI and declared that the property would be occupied by her and her son. The defendant signed a declaration in the mortgage loan application form, declaring that she was under an obligation to notify CNCBI immediately if the property was no longer occupied by her or her son. The bank approved the application and granted a mortgage loan of over $8 million, representing 80 per cent of the purchase price of the property, to the defendant in late June 2020.The ICAC enquiries, arising from a corruption complaint, revealed that between August 2020 and June 2022, the defendant leased out the property concerned to two tenants at a monthly rental of $19,000 and $20,500 respectively, but never informed CNCBI of the change in the occupancy status of the property. CNCBI sent a letter in December 2021 to request the defendant and her son to confirm whether the property would continue to be occupied by them. The duo gave an affirmative reply to CNCBI.Had CNCBI known the property was used for leasing, they would have demanded the defendant to repay part or all of the mortgage loan or impose other conditions on her, including an increase in the interest rate.CNCBI rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Jason Lau and Public Prosecutor Matthew Hui, assisted by ICAC officers Keith Kwok and Simon Ip. 09
Dec 2024Then substantial shareholder and chairman of listed company charged by ICAC guilty of conspiracy to defraud over ‘backdoor listing’, businessman wantedA then substantial shareholder of a listed company and its then chairman, charged by the ICAC, were today (December 9) convicted after trial at the District Court of 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. A warrant for the arrest of the businessman, who failed to attend the court hearing, was earlier issued by the court.Chim Pui-chung, 78, then substantial shareholder of Asia Resources Holdings Limited (Asia Resources); and Ricky Chim Kim-lun, 55, then chairman of Asia Resources, were found guilty of two counts of conspiracy to defraud, contrary to the Common Law.Ma Zhonghong, 51, the businessman implicated, was charged with the abovementioned two counts of conspiracy to defraud, and one 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.Wong Poe-lai, 68, then employee of Ma, was found guilty of one count of money laundering.In the reasons for verdict handed down today, Judge Mr Ernest Lin Kam-hung deplored the co-conspirators in the present case for their involvement in underhand dealings. Through financial shenanigans, the co-conspirators had sold a listed company like their private property for personal gain.The judge adjourned the case to January 8 next year for mitigation and sentence, as well as the hearing of the prosecution’s application for a confiscation order. Chim Pui-chung, Ricky Chim and Wong were remanded in the custody of the Correctional Services Department.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.An ICAC spokesperson notes that the Commission will continue its close collaboration with financial regulators to combat corruption and related crimes involving listed companies, and continue to enhance corporate governance of listed company through corruption prevention and education. The ICAC will strive to uphold integrity and fair operation of the Hong Kong financial market and to foster the confidence of stakeholders in the financial system.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.…/3ICAC 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 Ivan Shiu and Derek Wong, assisted by ICAC officers Matthew Tong and Vivian Poon.
Dec 2024Two imported team leaders charged by ICAC with HK$6m bribery over exploitation of Three-Runway System Project workers, subcontractor duo wantedFollowing the receipt of corruption complaints this year alleging corruption and exploitation involving imported workers, the ICAC conducted a thorough investigation and revealed that two imported team leaders of a subcontractor of the Three-Runway System Project (3RS Project) of the Hong Kong International Airport had allegedly collected bribes totalling over HK$6 million from 58 imported workers in relation to their employment. The two team leaders were charged with bribery today (December 19) while the operator and a manager of the subcontractor were wanted by the ICAC.An ICAC spokesperson notes that the Commission has zero tolerance for corruption. If construction workers are asked to pay bribes in exchange for their employment, they should reject and report to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366. To enhance imported workers’ understanding of Hong Kong’s anti-corruption laws, the ICAC would arrange corruption prevention talks for them within eight weeks of their arrival and make use of different channels to disseminate anti-corruption. Additionally, the ICAC would continue to collaborate with the Development Bureau (DEVB) and other stakeholders to avoid similar crimes revealed in the present case.The two team leaders, Wang Haidong and Wang Jiaqiang, aged 35 and 23 respectively, were both imported workers employed by the Joint Venture of Beijing Urban Construction Group Company Limited and Chevalier (Construction) Company Limited (Beijing Urban Construction-Chevalier JV). They face one count of conspiracy for agents to accept advantages, contrary to contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance. The duo were released on ICAC bail, pending their appearance at the West Kowloon Magistrates’ Courts tomorrow (December 20) for mention.At the material time, Beijing Urban Construction-Chevalier JV was the main contractor of the third runway concourse and apron works of the 3RS Project. Zhongyi Hong Kong Limited (Zhongyi HK) was one of its subcontractors. Due to shortage of manpower in the construction industry, Beijing Urban Construction-Chevalier JV employed imported workers for subcontractors at a monthly salary of HK$31,200 or HK$37,800 through the Development Bureau’s Labour Importation Scheme for Construction Sector.Zhongyi HK was involved in the recruitment of workers conducted by Beijing Urban Construction-Chevalier JV in the Mainland. Since October 2023, team leaders Wang Haidong and Wang Jiaqiang as well as other imported workers were employed in batches by Beijing Urban Construction-Chevalier JV, which prohibited its employees or agents from soliciting or accepting any advantages from others in relation to its business and affairs.It is alleged that between November 2023 and June 2024, Wang Haidong and Wang Jiaqiang had conspired with the operator cum major shareholder of Zhongyi HK, Yan Lizhong, and its human resources manager, Hu Weida, to accept bribes totalling over HK$6 million from 58 imported workers for assisting them to secure and continue their employment with Beijing Urban Construction-Chevalier JV.The ICAC enquiries revealed that Yan and Hu had allegedly told the workers before they sign employment contracts with Beijing Urban Construction-Chevalier JV that they were only entitled to a monthly salary of RMB10,000 to RMB20,000, and those not acceding to the arrangement would not be recruited. The workers worried about losing the job opportunities and reluctantly acceded to the arrangement.Investigation also revealed that the workers surrendered the whole sum of their salaries, i.e. HK$31,200 or HK$37,800, transferred to their bank accounts in Hong Kong by Beijing Urban Construction-Chevalier JV to Zhongyi HK through the arrangement made by Wang Haidong and Wang Jiaqiang. Monthly salaries of RMB10,000 to RMB20,000 were then deposited into workers’ bank accounts in the Mainland.Upon receipt of the relevant corruption complaints this year, the ICAC took an immediate enforcement action and arrested Wang Haidong and Wang Jiaqiang this June, curbing the bribery scam which exploited imported labours.In addition, warrants for the arrest of Yan Lizhong, 52, operator cum major shareholder of Zhongyi HK; and Hu Weida, 50, human resources manager of Zhongyi HK, were issued by a Magistrate upon the application made by the ICAC yesterday (December 18).The DEVB, the Airport Authority Hong Kong and Beijing Urban Construction-Chevalier JV rendered full assistance to the ICAC during its investigation into the case. 13
Dec 2024Yuen Long small house ‘Ding Rights’ cases: Two applicants charged by ICAC with conspiracy to defraud Lands Department each jailed for one yearThe ICAC had earlier charged 11 people, namely the operator of a small house developer, a village representative and small house applicants, for conspiring together to deceive the Lands Department into granting various building licenses for a small house estate development project in Yuen Long by transferring the “Ding Rights” concerned. Two of the small house applicants each received a one-year jail term at the Tuen Mun Magistrates’ Courts today (December 13).Two small house applicants, Choi Wai-sang, 63, and Jimmy Tang Kiu-chin, 74, earlier each pleaded guilty to one count of conspiracy to defraud, contrary to the Common Law.In sentencing, Acting Principal Magistrate Mr Daniel Tang Siu-hung remarked that the offences involved in the present cases were serious in nature. By selling their “Ding Rights”, the defendants defrauded the government and exploited land use, warranting custodial sentences.Under the New Territories Small House Policy, every male indigenous inhabitant of the New Territories aged 18 or above may exercise his “Ding Right” once and apply to the Lands Department for building a small house within a recognised village of the New Territories for his own occupation. A “Ding Right” is not transferrable.The court heard that between February and June 2006, Choi and Tang respectively made an application to the Lands Department for building a small house in Shui Tsiu San Tsuen in Yuen Long for their own occupation. They claimed that they were the respective sole legal and registered owner of the lots of land concerned, had never entered into any agreements with others to transfer or otherwise deal with their lots of land or relevant interests, and had no intention to sell their “Ding Rights” to other individuals or developers. The Lands Department subsequently granted the building licenses to the duo.The ICAC investigation arose from a corruption complaint. Enquiries revealed that since November 1991, a number of individuals, including Choi and Tang, had applied for building small houses in Shui Tsiu San Tsuen. The small houses were subsequently sold to members of the public by a developer under the name of a private estate, and each small house was sold at market price ranging from $9 to $13 million. The small houses of Choi and Tang were respectively sold in 2015 and 2017. The developer concerned received over $1,000 million for the sale of 115 small houses in the private estate.ICAC enquiries also revealed that since the 1990s, an indigenous inhabitant representative and other middlemen started the development of the estate project in Shui Tsiu San Tsuen by purchasing “Ding Rights” from indigenous inhabitants of Yuen Long. Choi and Tang had conspired with the middlemen to sell their “Ding Rights” at $100,000 each, totalling $200,000.Later in about March 2005, a developer entered into an agreement with the indigenous inhabitant representative and appointed the latter as its trustee to jointly develop the small house project. The indigenous inhabitant representative and the middlemen then continued to purchase more “Ding Rights” from indigenous inhabitants and arranged for them to apply for building licences to build small houses in Shui Tsiu San Tsuen.The Lands Department offered full assistance to the ICAC during its investigation into the cases. The prosecution was today represented by ICAC officer Chris Lai.Two individuals implicated in the scam, namely Edward Wong Kwong-wing, 75, operator of Wing Smart Construction Limited, and Ching Chan-ming, 67, indigenous inhabitant representative of Shui Tsiu San Tsuen, were earlier jointly charged by the ICAC in another case with one count of conspiracy to defraud. Their case is set for trial at the District Court on February 10, 2025.The ICAC also charged seven other small house applicants, aged between 43 and 74, in separate cases. The defendants are Wong Kwun-sing, Chan Chi-ming, Chan Wing-kin, Leung Kam-yick, Lung Fok-ye, Yeung Kai-kwong and Lok Tin-lung. Their cases are adjourned to January 17 next year for plea. 13
Dec 2024Three site team leaders charged by ICAC for accepting bribes of $220,000 from Third Runway Project’s workers by blackmailThe ICAC today (December 13) charged three then site team leaders of a sub-contractor of the Third Runway Project of the Hong Kong International Airport (Third Runway Project) for allegedly soliciting and accepting bribes totalling over $220,000 from seven carpenters by blackmail.He Yuchuan, 56; Chow Kwai-fai, 50; and Ye Zhifu, 57, all then site team leaders for carpentry works of MLife Engineering Limited (MEL), face a total of 15 charges in two cases – 11 counts of agent accepting an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance; and four of blackmail, contrary to section 23(1) of the Theft Ordinance.The defendants were released on ICAC bail, pending the trio’s appearance at the West Kowloon Magistrates’ Courts next Tuesday (December 17) for plea.An ICAC spokesperson urges construction workers not to tolerate corruption. If they are asked to pay bribes in exchange for their employment, they should reject and report to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366.At the material time, MEL was a sub-contractor of the Third Runway Project responsible for recruiting construction workers to conduct various works. The three defendants, being site team leaders, had the authority to assign work to two teams of carpenters working at the project’s construction site. MEL did not allow any employees to solicit or accept any advantages from other employees for assisting the latter to secure their employment with the company.In the first case which took place between September 2020 and January 2022, He and Chow had allegedly demanded bribes ranging from $100 to $350 per working day from four carpenters under his supervision, menacing to terminate the workers’ employment should they refuse to accede to the request. The duo subsequently accepted bribes totalling over $200,000 from the four workers.In the second case, it is alleged that Ye had accepted bribes totalling over $20,000 and six cartons of cigarettes from three carpenters between February and June 2022. The carpenters worried about losing their job opportunities and reluctantly acceded to pay bribes and offer cigarettes to the defendants.The Airport Authority Hong Kong, the relevant main contractor SAPR JV and MEL rendered full assistance to the ICAC during its investigation into the cases. 12
Dec 2024Property buyer charged by ICAC gets 14 months’ jail for mortgage loan fraud, $700,000 income from letting confiscatedThe ICAC had earlier charged a property buyer for inducing 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 by concealing the property was leased out and making false representation that the owner-occupied requirement was met. A Deputy Judge today (December 12) imposed a 14 months’ jail term on the defendant at the District Court and ordered to confiscate the income from letting the property totalling $700,000.Wong Hin-ning, 49, insurance agent, earlier pleaded guilty to two counts of fraud, contrary to section 16A of the Theft Ordinance.In sentencing, Deputy Judge Bernard Chung remarked that the case was serious in nature. He took a starting point of 30 months’ imprisonment and reduced the jail term to 14 months having considered the defendant’s guilty plea and other mitigating factors.The Deputy Judge also approved the prosecution’s application for confiscation order, and ordered to confiscate from the defendant crime proceeds of $700,000, being the income from letting the property in the present case. The defendant is required to satisfy the confiscation order by December 16, failing which she will have to serve an additional term of imprisonment of 20 months.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) 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.The court heard that, in late February 2020, the defendant purchased a private residential property in Ho Man Tin at $9.98 million on behalf of her son who was abroad at that time. A few days later, she applied for a mortgage loan with an LTV of 80 per cent with CNCBI and declared that the property would be occupied by her and her son. The defendant signed a declaration in the mortgage loan application form, declaring that she was under an obligation to notify CNCBI immediately if the property was no longer occupied by her or her son. The bank approved the application and granted a mortgage loan of over $8 million, representing 80 per cent of the purchase price of the property, to the defendant in late June 2020.The ICAC enquiries, arising from a corruption complaint, revealed that between August 2020 and June 2022, the defendant leased out the property concerned to two tenants at a monthly rental of $19,000 and $20,500 respectively, but never informed CNCBI of the change in the occupancy status of the property. CNCBI sent a letter in December 2021 to request the defendant and her son to confirm whether the property would continue to be occupied by them. The duo gave an affirmative reply to CNCBI.Had CNCBI known the property was used for leasing, they would have demanded the defendant to repay part or all of the mortgage loan or impose other conditions on her, including an increase in the interest rate.CNCBI rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Jason Lau and Public Prosecutor Matthew Hui, assisted by ICAC officers Keith Kwok and Simon Ip. 09
Dec 2024Then substantial shareholder and chairman of listed company charged by ICAC guilty of conspiracy to defraud over ‘backdoor listing’, businessman wantedA then substantial shareholder of a listed company and its then chairman, charged by the ICAC, were today (December 9) convicted after trial at the District Court of 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. A warrant for the arrest of the businessman, who failed to attend the court hearing, was earlier issued by the court.Chim Pui-chung, 78, then substantial shareholder of Asia Resources Holdings Limited (Asia Resources); and Ricky Chim Kim-lun, 55, then chairman of Asia Resources, were found guilty of two counts of conspiracy to defraud, contrary to the Common Law.Ma Zhonghong, 51, the businessman implicated, was charged with the abovementioned two counts of conspiracy to defraud, and one 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.Wong Poe-lai, 68, then employee of Ma, was found guilty of one count of money laundering.In the reasons for verdict handed down today, Judge Mr Ernest Lin Kam-hung deplored the co-conspirators in the present case for their involvement in underhand dealings. Through financial shenanigans, the co-conspirators had sold a listed company like their private property for personal gain.The judge adjourned the case to January 8 next year for mitigation and sentence, as well as the hearing of the prosecution’s application for a confiscation order. Chim Pui-chung, Ricky Chim and Wong were remanded in the custody of the Correctional Services Department.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.An ICAC spokesperson notes that the Commission will continue its close collaboration with financial regulators to combat corruption and related crimes involving listed companies, and continue to enhance corporate governance of listed company through corruption prevention and education. The ICAC will strive to uphold integrity and fair operation of the Hong Kong financial market and to foster the confidence of stakeholders in the financial system.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.…/3ICAC 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 Ivan Shiu and Derek Wong, assisted by ICAC officers Matthew Tong and Vivian Poon.