A former chairman of an Incorporated Owners (IO) of a residential building in Tsuen Wan, charged by the ICAC, was today sentenced to four months' imprisonment at the Tsuen Wan Magistracy for pocketing $12,000 IO funds.

The defendant, 46, had earlier pleaded guilty to one count of fraud.

Magistrate Mr Ernest Lin also ordered the defendant to pay $12,000 in restitution to the IO.

The court heard that the defendant was the chairman of the IO of a residential building in Tsuen Wan between July 2007 and early October 2008.

He was responsible for handling the rental of the building's external wall for advertisement purpose. The rents were to be deposited into the IO's bank account.

The court further heard that on July 7, 2008, the defendant signed an agreement with a beauty company (Company A) for leasing an external wall advertisement space at a monthly rental of $3,500 for the period between August 2008 and February 2010.

While signing the agreement, the defendant advised Company A that the rents should be paid to him instead of the IO, which he claimed was then involved in litigation.

Company A then gave four cheques to the defendant for the rents from August till November 2008. The cheques were subsequently deposited into the defendant's personal bank account.

The court further heard that the defendant was dismissed by the IO in October 2008.

On the repeated demand of the incumbent chairman, the defendant handed over three documents to the IO on October 24, 2008, which falsely represented that the said advertisement space had been leased to a separate beauty company (Company B) with a monthly rental of $2,000 for a one-year period starting from October 2008.

The defendant also tendered a copy of an IO receipt of $2,000 issued by him to Company B for the said sum; and a bank receipt showing the deposit of a $2,000 cheque into the IO's bank account.

The court heard that Company B was not in existence and the aforementioned cheque was in fact a cashier's order purchased by the defendant.

The defendant had pocketed a total of $12,000 from the IO.

The prosecution was today represented by Public Prosecutor Sheroy Tam, assisted by ICAC officer Kelvin Choi.