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Nov 2023Ex-listed company chairman and two others charged by ICAC guilty of conspiracy to defraud over acquisition of NZ farms at second retrialA former listed company chairman and two others were earlier charged by the ICAC after it was revealed in a corruption investigation that the trio had conspired together to deceive the Stock Exchange of Hong Kong (SEHK) and the listed company by concealing their interests in an acquisition of dairy farms in New Zealand at NZ$500 million and falsely representing the gross profit of the dairy farms. A jury at the High Court today (November 30) convicted the trio of the offences at a second retrial.The defendants were Chen Keen, 56, former executive director and joint-chairman of now de-listed Natural Dairy (NZ) Holdings Limited (NDNZ); Yee Wenjye, 52, former vice-president of NDNZ; and Hao May, formerly known as Wang May-yan, 61, owner and operator of UBNZ Trustee Limited (UBTL).After retiring for deliberation for one day, the jury found Chen and Hao guilty of four counts of conspiracy to defraud, while Yee was guilty of two counts of conspiracy to defraud.Madam Justice Anna Lai Yuen-kee adjourned the case to tomorrow (December 1) for mitigation. The defendants were remanded in the custody of the Correctional Services Department.The three defendants were respectively charged by the ICAC in late 2011 and early 2012. In June 2016, they were sentenced to jail terms ranging from five years to eight years and three months after being convicted by a jury at the Court of First Instance of the High Court. Following the trio’s appeal, the court quashed their convictions and ordered a retrial. After the jury at the retrial was discharged in June 2021, a second retrial was set for July this year.An ICAC spokesperson notes that the ICAC does not tolerate corruption or any related offences. The Commission remains committed to tracking down the corrupt relentlessly so as to sustain Hong Kong’s status as a clean international financial centre.Before it was renamed in October 2009, NDNZ was formerly known as China Jin Hui Mining Corporation Limited (CJHM). At the material time, the company was listed on the Main Board of the SEHK and engaged in the trading of iron ore. Its listing was cancelled in November 2022.Chen joined CJHM as executive director and joint chairman in May 2009 while Yee later became its vice-president. Apart from being the owner and operator of UBTL, Hao also owned beneficial interests in its subsidiaries – UBNZ Assets Holdings Limited (UBAH) and UBNZ Funds Management Limited (UBFM).The court heard that between May and September 2009, Chen and Hao conspired together to defraud the SEHK. They falsely represented that UBTL, UBFM and their respective ultimate beneficial owners were independent third parties to CJHM. They also made a false representation that there was no existing or prior understanding between Chen and Hao with respect to the acquisition of the entire issued share capital and assets of UBAH, including UBAH’s completing the purchase of dairy farms owned by the CraFarms Group in New Zealand, by CJHM from UBTL.Meanwhile, Chen and Hao concealed that Chen had an interest in the acquisition. However, ICAC enquiries revealed that Chen and Hao were parties to an agreement signed with another company to share the commission arising from the sale and purchase of dairy farms owned by the CraFarms Group.The three defendants also falsely represented that the gross profit of the properties and fixed assets relating to dairy farms owned by the CraFarms Group for the 2008/2009 financial year was over HK$92 million.As a result, the SEHK was caused to allow CJHM to publish an announcement and a circular in relation to the acquisition which contained the false representations, the court heard.Between May 2009 and July 2010, the three defendants conspired together to deploy similar fraudulent means to deceive CJHM and its existing shareholders into approving the agreement for the acquisition, and to cause CJHM to issue and release convertible notes and an optional bond for the payment of the acquisition.The prosecution was today represented by prosecuting counsel Neil Mitchell, Senior Public Prosecutor Joycelyn Ng and barrister Martin Li, assisted by ICAC officers Fiona Wan, Gary Li, Jeffrey Chan and Stanley Cheung. 29
Nov 2023Property investor and mother guilty of $750,000 agency commission fraud over shopping centre purchaseA property investor and his mother, charged by the ICAC, were today (November 29) convicted at the District Court of conspiracy to defraud for deceiving an investment partner into paying an agency commission of over $750,000 in the purchase of a shopping centre at $168 million revealed in a bribery probe.Tse Yiu-sing, 39, sole director-cum-shareholder of Landcorp Properties Limited (Landcorp); and his mother Sin Yuk-ling, 68, were convicted of one count of conspiracy to defraud, contrary to Common Law.Deputy Judge Mr Kenneth Chan Ping-chau adjourned the case to December 13 for sentence, pending the defendants’ medical reports. The duo was remanded in the custody of the Correctional Services Department.The court heard that in June 2019, Tse invited an investment partner to jointly acquire Greenview Court Shopping Centre in Tsuen Wan. It was agreed that Total Link Limited (Total Link) would be acquired as a vehicle for purchasing the shopping centre. Sin and the investment partner respectively held 55 per cent shares and 45 per cent shares of Total Link, and all costs and profits in relation to the purchase of the shopping centre would be shared on a pro rata basis.In July 2019, Total Link signed a provisional sale and purchase agreement with the vendor via Midland Realty (Shops II) Limited (Midland) for purchasing the shopping centre at $168 million. Total Link was required to pay one per cent of the transaction price, i.e. $1.68 million, as agency commission to Midland. According to the above agreement, the investment partner should bear $750,000 of it.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Landcorp reached another agreement with Midland through Sin to procure the transaction. According to the agreement, Midland and Landcorp would cooperate to procure the transaction. Midland would retain 20 per cent of the agency commission concerned, while the remaining 80 per cent would be paid to Landcorp, which was owned by Tse.However, Tse and Sin concealed from the investment partner the agreement, with intent to induce the investment partner to pay $750,000 agency commission and to obtain the percentage of agency commission Landcorp entitled to receive.The transaction was eventually terminated and Total Link did not complete the purchase of the shopping centre.The prosecution was today represented by prosecuting counsel Michael Leung, assisted by ICAC officer Chacha Chan. 29
Nov 2023Ex-foreman of DSD’s sub-contractor charged by ICAC jailed for accepting bribes from workersA then foreman of a sub-contractor of the Drainage Services Department (DSD), charged by the ICAC, was today (November 29) sentenced to eight months’ imprisonment after admitting at the West Kowloon Magistrates’ Courts that he had accepted bribes totalling over $45,000 from workers under his supervision.Xiao Qisheng, 57, former foreman of Kong Power Engineering Limited (Kong Power), pleaded guilty to three counts of agent accepting an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance. The prosecution offered no evidence to one count of obtaining property by deception and one count of blackmail against him.In sentencing, Magistrate Mr Jason Wan Siu-ming said the case was serious in nature warranting a custodial sentence as the defendant exploited various subordinate workers for over a year.The magistrate also ordered the defendant to repay over $45,000, being the bribes involved in the case, to Kong Power as restitution.At the material time, Kong Power was a sub-contractor of a drainage maintenance and construction project of the DSD. The defendant was a foreman at the construction site of the project, who was responsible for leading and supervising workers. He would also introduce workers to work at the construction site.Between March 2020 and March 2021, the defendant accepted bribes totalling over $45,000 from three workers under his supervision. The workers believed that they would be terminated by Kong Power if bribes ranging from $50 to $100 per working day were not paid to the defendant. The defendant started to pick on the trio and suspended their duties on pretexts of laziness and bad attitude after they refused to pay bribes.Kong Power had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officers Danny Chan and Paul Ho.In recent years, the ICAC has taken a series of enforcement actions against solicitation and acceptance of illegal rebates from construction workers and launched a series of relevant publicity and education programmes. The ICAC urges construction workers not to tolerate corruption. Should they be asked to pay bribes in exchange for their employment, they should report to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366. 28
Nov 2023Ex-employee of engineering company charged by ICAC for concealing conflict of interest in lifts works orders worth $700,000A former employee of an engineering company was charged by the ICAC today (November 28) for allegedly deceiving the company into awarding over 1,100 lifts and escalators maintenance works orders worth totalling about $700,000 to a contractor set up by his mother by concealing his conflict of interest in it.Cheung Tsz-chung, 38, former associate of ISPL Consulting Limited (ISPL), faces one count of fraud, contrary to section 16A of the Theft Ordinance.The defendant was released on ICAC bail, pending his appearance at the Eastern Magistrates’ Courts on Thursday (November 30) for mention. The prosecution will apply for transferring the case to the District Court for plea.At the material time, the defendant was employed by engineering company ISPL as associate. He was responsible for managing engineering projects relating to lifts and escalators, and outsourcing works to contractors. As requested by ISPL, the defendant was required to declare any conflict of interest arising from matters relating to outsourcing of contracts.It is alleged that between March 2019 and January 2022, the defendant concealed from ISPL his interest and his mother’s interest in Accredited Consulting Limited (ACL), and with intent to defraud, induced ISPL to engage ACL for works orders and consultancy services.The ICAC investigation arose from a corruption complaint. Enquiries revealed that during the above period, ISPL outsourced over 1,100 lifts and escalators maintenance works orders worth totalling about $700,000 to ACL upon the defendant’s recommendation.ICAC enquires also revealed that the defendant’s mother was the sole director-cum-shareholder of ACL. The defendant and his mother were both authorised signatories of the bank account of ACL.ISPL has rendered full assistance to the ICAC during its investigation into the case.The ICAC reminds staff of business organisations to avoid conflict of interest and make declarations in strict adherence to internal guidelines. Concealing any conflict of interest in relation to one’s official duties to benefit himself or his associates may contravene the criminal law, such as the Prevention of Bribery Ordinance if offering or accepting of bribes is involved. 22
Nov 2023Ex-security guard of public housing estate charged by ICAC admits offering ‘laisees’ to supervisor over duty arrangementA former security guard of a public housing estate, charged by the ICAC, today (November 22) admitted at the Kowloon City Magistrates’ Courts that she had offered “laisees” totalling $4,000 to her supervisor for arranging her to a post she preferred.Liang Jinlan, 48, former security guard of Nice Property Management Limited (Nice Property), pleaded guilty to two counts of offering an advantage to an agent, contrary to Section 9(2)(b) of the Prevention of Bribery Ordinance.Acting Principal Magistrate Miss Veronica Heung Shuk-han adjourned the case to December 6 for sentence, pending the defendant’s background and community service order reports. The defendant was granted bail.At the material time, Nice Property was engaged by the Housing Department (HD) to provide security services in Lok Fu Estate. Nice Property forbade its staff to offer or accept any advantages in relation to their duties.The court heard that the defendant was a morning shift security guard of the estate, her daily duty roster was prepared by a security supervisor. Between mid-November 2022 and late January 2023, which was after the birthday of the security supervisor and during Chinese New Year, the defendant offered two “laisees” totalling $4,000 to the security supervisor for arranging her to work at the reception of a building in Lok Fu Estate.The ICAC investigation arose from a corruption complaint referred by the HD. The department and Nice Property had rendered full assistance to the ICAC during its investigation into the case. The prosecution was today represented by ICAC officer Michael Lim.The security supervisor concerned was also charged by the ICAC for two counts of bribery offences. She did not enter plea at the Kowloon City Magistrates’ Courts today and her case was adjourned to January 10 next year for plea.
Nov 2023Ex-listed company chairman and two others charged by ICAC guilty of conspiracy to defraud over acquisition of NZ farms at second retrialA former listed company chairman and two others were earlier charged by the ICAC after it was revealed in a corruption investigation that the trio had conspired together to deceive the Stock Exchange of Hong Kong (SEHK) and the listed company by concealing their interests in an acquisition of dairy farms in New Zealand at NZ$500 million and falsely representing the gross profit of the dairy farms. A jury at the High Court today (November 30) convicted the trio of the offences at a second retrial.The defendants were Chen Keen, 56, former executive director and joint-chairman of now de-listed Natural Dairy (NZ) Holdings Limited (NDNZ); Yee Wenjye, 52, former vice-president of NDNZ; and Hao May, formerly known as Wang May-yan, 61, owner and operator of UBNZ Trustee Limited (UBTL).After retiring for deliberation for one day, the jury found Chen and Hao guilty of four counts of conspiracy to defraud, while Yee was guilty of two counts of conspiracy to defraud.Madam Justice Anna Lai Yuen-kee adjourned the case to tomorrow (December 1) for mitigation. The defendants were remanded in the custody of the Correctional Services Department.The three defendants were respectively charged by the ICAC in late 2011 and early 2012. In June 2016, they were sentenced to jail terms ranging from five years to eight years and three months after being convicted by a jury at the Court of First Instance of the High Court. Following the trio’s appeal, the court quashed their convictions and ordered a retrial. After the jury at the retrial was discharged in June 2021, a second retrial was set for July this year.An ICAC spokesperson notes that the ICAC does not tolerate corruption or any related offences. The Commission remains committed to tracking down the corrupt relentlessly so as to sustain Hong Kong’s status as a clean international financial centre.Before it was renamed in October 2009, NDNZ was formerly known as China Jin Hui Mining Corporation Limited (CJHM). At the material time, the company was listed on the Main Board of the SEHK and engaged in the trading of iron ore. Its listing was cancelled in November 2022.Chen joined CJHM as executive director and joint chairman in May 2009 while Yee later became its vice-president. Apart from being the owner and operator of UBTL, Hao also owned beneficial interests in its subsidiaries – UBNZ Assets Holdings Limited (UBAH) and UBNZ Funds Management Limited (UBFM).The court heard that between May and September 2009, Chen and Hao conspired together to defraud the SEHK. They falsely represented that UBTL, UBFM and their respective ultimate beneficial owners were independent third parties to CJHM. They also made a false representation that there was no existing or prior understanding between Chen and Hao with respect to the acquisition of the entire issued share capital and assets of UBAH, including UBAH’s completing the purchase of dairy farms owned by the CraFarms Group in New Zealand, by CJHM from UBTL.Meanwhile, Chen and Hao concealed that Chen had an interest in the acquisition. However, ICAC enquiries revealed that Chen and Hao were parties to an agreement signed with another company to share the commission arising from the sale and purchase of dairy farms owned by the CraFarms Group.The three defendants also falsely represented that the gross profit of the properties and fixed assets relating to dairy farms owned by the CraFarms Group for the 2008/2009 financial year was over HK$92 million.As a result, the SEHK was caused to allow CJHM to publish an announcement and a circular in relation to the acquisition which contained the false representations, the court heard.Between May 2009 and July 2010, the three defendants conspired together to deploy similar fraudulent means to deceive CJHM and its existing shareholders into approving the agreement for the acquisition, and to cause CJHM to issue and release convertible notes and an optional bond for the payment of the acquisition.The prosecution was today represented by prosecuting counsel Neil Mitchell, Senior Public Prosecutor Joycelyn Ng and barrister Martin Li, assisted by ICAC officers Fiona Wan, Gary Li, Jeffrey Chan and Stanley Cheung. 29
Nov 2023Property investor and mother guilty of $750,000 agency commission fraud over shopping centre purchaseA property investor and his mother, charged by the ICAC, were today (November 29) convicted at the District Court of conspiracy to defraud for deceiving an investment partner into paying an agency commission of over $750,000 in the purchase of a shopping centre at $168 million revealed in a bribery probe.Tse Yiu-sing, 39, sole director-cum-shareholder of Landcorp Properties Limited (Landcorp); and his mother Sin Yuk-ling, 68, were convicted of one count of conspiracy to defraud, contrary to Common Law.Deputy Judge Mr Kenneth Chan Ping-chau adjourned the case to December 13 for sentence, pending the defendants’ medical reports. The duo was remanded in the custody of the Correctional Services Department.The court heard that in June 2019, Tse invited an investment partner to jointly acquire Greenview Court Shopping Centre in Tsuen Wan. It was agreed that Total Link Limited (Total Link) would be acquired as a vehicle for purchasing the shopping centre. Sin and the investment partner respectively held 55 per cent shares and 45 per cent shares of Total Link, and all costs and profits in relation to the purchase of the shopping centre would be shared on a pro rata basis.In July 2019, Total Link signed a provisional sale and purchase agreement with the vendor via Midland Realty (Shops II) Limited (Midland) for purchasing the shopping centre at $168 million. Total Link was required to pay one per cent of the transaction price, i.e. $1.68 million, as agency commission to Midland. According to the above agreement, the investment partner should bear $750,000 of it.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Landcorp reached another agreement with Midland through Sin to procure the transaction. According to the agreement, Midland and Landcorp would cooperate to procure the transaction. Midland would retain 20 per cent of the agency commission concerned, while the remaining 80 per cent would be paid to Landcorp, which was owned by Tse.However, Tse and Sin concealed from the investment partner the agreement, with intent to induce the investment partner to pay $750,000 agency commission and to obtain the percentage of agency commission Landcorp entitled to receive.The transaction was eventually terminated and Total Link did not complete the purchase of the shopping centre.The prosecution was today represented by prosecuting counsel Michael Leung, assisted by ICAC officer Chacha Chan. 29
Nov 2023Ex-foreman of DSD’s sub-contractor charged by ICAC jailed for accepting bribes from workersA then foreman of a sub-contractor of the Drainage Services Department (DSD), charged by the ICAC, was today (November 29) sentenced to eight months’ imprisonment after admitting at the West Kowloon Magistrates’ Courts that he had accepted bribes totalling over $45,000 from workers under his supervision.Xiao Qisheng, 57, former foreman of Kong Power Engineering Limited (Kong Power), pleaded guilty to three counts of agent accepting an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance. The prosecution offered no evidence to one count of obtaining property by deception and one count of blackmail against him.In sentencing, Magistrate Mr Jason Wan Siu-ming said the case was serious in nature warranting a custodial sentence as the defendant exploited various subordinate workers for over a year.The magistrate also ordered the defendant to repay over $45,000, being the bribes involved in the case, to Kong Power as restitution.At the material time, Kong Power was a sub-contractor of a drainage maintenance and construction project of the DSD. The defendant was a foreman at the construction site of the project, who was responsible for leading and supervising workers. He would also introduce workers to work at the construction site.Between March 2020 and March 2021, the defendant accepted bribes totalling over $45,000 from three workers under his supervision. The workers believed that they would be terminated by Kong Power if bribes ranging from $50 to $100 per working day were not paid to the defendant. The defendant started to pick on the trio and suspended their duties on pretexts of laziness and bad attitude after they refused to pay bribes.Kong Power had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officers Danny Chan and Paul Ho.In recent years, the ICAC has taken a series of enforcement actions against solicitation and acceptance of illegal rebates from construction workers and launched a series of relevant publicity and education programmes. The ICAC urges construction workers not to tolerate corruption. Should they be asked to pay bribes in exchange for their employment, they should report to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366. 28
Nov 2023Ex-employee of engineering company charged by ICAC for concealing conflict of interest in lifts works orders worth $700,000A former employee of an engineering company was charged by the ICAC today (November 28) for allegedly deceiving the company into awarding over 1,100 lifts and escalators maintenance works orders worth totalling about $700,000 to a contractor set up by his mother by concealing his conflict of interest in it.Cheung Tsz-chung, 38, former associate of ISPL Consulting Limited (ISPL), faces one count of fraud, contrary to section 16A of the Theft Ordinance.The defendant was released on ICAC bail, pending his appearance at the Eastern Magistrates’ Courts on Thursday (November 30) for mention. The prosecution will apply for transferring the case to the District Court for plea.At the material time, the defendant was employed by engineering company ISPL as associate. He was responsible for managing engineering projects relating to lifts and escalators, and outsourcing works to contractors. As requested by ISPL, the defendant was required to declare any conflict of interest arising from matters relating to outsourcing of contracts.It is alleged that between March 2019 and January 2022, the defendant concealed from ISPL his interest and his mother’s interest in Accredited Consulting Limited (ACL), and with intent to defraud, induced ISPL to engage ACL for works orders and consultancy services.The ICAC investigation arose from a corruption complaint. Enquiries revealed that during the above period, ISPL outsourced over 1,100 lifts and escalators maintenance works orders worth totalling about $700,000 to ACL upon the defendant’s recommendation.ICAC enquires also revealed that the defendant’s mother was the sole director-cum-shareholder of ACL. The defendant and his mother were both authorised signatories of the bank account of ACL.ISPL has rendered full assistance to the ICAC during its investigation into the case.The ICAC reminds staff of business organisations to avoid conflict of interest and make declarations in strict adherence to internal guidelines. Concealing any conflict of interest in relation to one’s official duties to benefit himself or his associates may contravene the criminal law, such as the Prevention of Bribery Ordinance if offering or accepting of bribes is involved. 22
Nov 2023Ex-security guard of public housing estate charged by ICAC admits offering ‘laisees’ to supervisor over duty arrangementA former security guard of a public housing estate, charged by the ICAC, today (November 22) admitted at the Kowloon City Magistrates’ Courts that she had offered “laisees” totalling $4,000 to her supervisor for arranging her to a post she preferred.Liang Jinlan, 48, former security guard of Nice Property Management Limited (Nice Property), pleaded guilty to two counts of offering an advantage to an agent, contrary to Section 9(2)(b) of the Prevention of Bribery Ordinance.Acting Principal Magistrate Miss Veronica Heung Shuk-han adjourned the case to December 6 for sentence, pending the defendant’s background and community service order reports. The defendant was granted bail.At the material time, Nice Property was engaged by the Housing Department (HD) to provide security services in Lok Fu Estate. Nice Property forbade its staff to offer or accept any advantages in relation to their duties.The court heard that the defendant was a morning shift security guard of the estate, her daily duty roster was prepared by a security supervisor. Between mid-November 2022 and late January 2023, which was after the birthday of the security supervisor and during Chinese New Year, the defendant offered two “laisees” totalling $4,000 to the security supervisor for arranging her to work at the reception of a building in Lok Fu Estate.The ICAC investigation arose from a corruption complaint referred by the HD. The department and Nice Property had rendered full assistance to the ICAC during its investigation into the case. The prosecution was today represented by ICAC officer Michael Lim.The security supervisor concerned was also charged by the ICAC for two counts of bribery offences. She did not enter plea at the Kowloon City Magistrates’ Courts today and her case was adjourned to January 10 next year for plea.