Company director wanted by ICAC brought to court for $1m loan fraud
A director-cum-shareholder of a garment company (Company A), who was wanted for over nine years, was brought to the Tuen Mun Magistracy today (October 10) after being charged by the ICAC with defrauding a bank of a loan of about $1 million under the Small and Medium Enterprises (SME) Loan Guarantee Scheme.
The defendant, 64, was arrested by ICAC officers yesterday (October 9) when he returned to Hong Kong from the Mainland.
After seeking legal advice from the Department of Justice, the ICAC charged the defendant with one count of fraud, contrary to Section 16A of the Theft Ordinance, and brought him to the Tuen Mun Magistracy this morning for mention.
No plea was taken. Magistrate Ms Kelly Shui remanded the defendant in the custody of the Correctional Services Department until November 21 this year for mention.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offence.
At the material time, the defendant was a director-cum-shareholder of Company A, which engaged in the manufacturing and trading of garments.
On August 15, 2006, a bank granted banking facilities to Company A, including an accounts receivable loan guarantee of up to $1 million under the SME Loan Guarantee Scheme launched by the Hong Kong Government. In case of default, the Government would guarantee 50 per cent of the defaulted amount.
The charge alleged that between August 22 and 31, 2006, the defendant, together with another director-cum-shareholder of Company A, falsely represented that Company A had sold goods to another company and would receive payments from that company, and with intent to defraud, induced the bank to release a loan of about $1 million to Company A, which resulted in benefit to Company A or in prejudice to the bank.
The defendant left Hong Kong on February 3, 2007 prior to the overt action of the ICAC. On July 15, 2008, a warrant of arrest against him was issued by the Tuen Mun Magistracy.
On October 9, 2017, the defendant was arrested by ICAC officers at the Shenzhen Bay Control Point upon his return to Hong Kong from the Mainland.
The prosecution was today represented by ICAC officer Seth Yiu.