Four years' jail for businessman in $1.7 trillion US bond scam
2001-12-21
An American businessman was today (Friday) jailed for four years at District Court for possessing counterfeit US Federal Reserve Notes (FRNs) and bonds with a total face value of over US$226.9 billion (HK$1.76 trillion).
Chase Joseph Wang TISONI, 59, was found guilty after trial of five offences –'96 three of possessing 731 forged US FRNs and bonds, one of using a false FRN, and one of evasion of liability by deception.
In delivering verdict, Judge Sweeney remarked that the amount of forged reserve notes involved in this case was stunning as the total face value was apparently higher than Hong Kong's fiscal reserves.
And the most critical element was that the defendant had the full knowledge of his boss' business of selling these counterfeit FRNs, the judge added.
The case originated from a corruption complaint, alleging that a businessman had conspired with others to bribe bank managers to allow him to obtain loan facilities from the banks by uttering forged valuable securities.
ICAC enquiries revealed a tremendous fake securities scam but the allegations against bank staff were not substantiated.
The court heard that TISONI was the personal assistant of Edilberto Marcos MARCOS who established a company in Hong Kong in November 1999.
Since August 1999, TISONI and MARCOS had been staying in the Hyatt Regency Hotel.
In November 2000, MARCOS started to delay payment for the rental of the rooms and left Hong Kong for the USA.
TISONI told the hotel managers that MARCOS went to the USA to attend the Inauguration Event of President George Bush in Washington DC.
TISONI also claimed that he could provide a guarantee to the hotel though he could not settle the outstanding payment immediately.
He then took a stack of documents purported to be FRNs, of about six inches high, and gave one of the false FRNs, in the denomination of US$100 million, to the hotel.
The ICAC also found that TISONI, together with MARCOS, had in their custody 255 false US FRNs in the total sum of US$125 billion inside a room of the hotel.
The duo was also found possessing 441 counterfeit FRNs and three false US Federal Reserve Bonds in the total sum of US$48.4 billion in another room of the hotel.
Another forged 27 FRNs and other counterfeit securities including a fake Federal Reserve Certificate, a Gold and Silver Certificate, a Treasury Certificate, an Insurance Certificate and a Bank Certificate of the US, in the total sum of US$53 billion, were found inside a bank's safe deposit box opened by TISONI in another person's name.
The court also heard that TISONI had also given a bounced cheque for HK$1.6 million to settle accommodation expenses with the hotel, evading liability to make payment to the hotel by deception.
The prosecution was today represented by Government Counsel Richard Ma, assisted by ICAC officer Stella Leung.
Chase Joseph Wang TISONI, 59, was found guilty after trial of five offences –'96 three of possessing 731 forged US FRNs and bonds, one of using a false FRN, and one of evasion of liability by deception.
In delivering verdict, Judge Sweeney remarked that the amount of forged reserve notes involved in this case was stunning as the total face value was apparently higher than Hong Kong's fiscal reserves.
And the most critical element was that the defendant had the full knowledge of his boss' business of selling these counterfeit FRNs, the judge added.
The case originated from a corruption complaint, alleging that a businessman had conspired with others to bribe bank managers to allow him to obtain loan facilities from the banks by uttering forged valuable securities.
ICAC enquiries revealed a tremendous fake securities scam but the allegations against bank staff were not substantiated.
The court heard that TISONI was the personal assistant of Edilberto Marcos MARCOS who established a company in Hong Kong in November 1999.
Since August 1999, TISONI and MARCOS had been staying in the Hyatt Regency Hotel.
In November 2000, MARCOS started to delay payment for the rental of the rooms and left Hong Kong for the USA.
TISONI told the hotel managers that MARCOS went to the USA to attend the Inauguration Event of President George Bush in Washington DC.
TISONI also claimed that he could provide a guarantee to the hotel though he could not settle the outstanding payment immediately.
He then took a stack of documents purported to be FRNs, of about six inches high, and gave one of the false FRNs, in the denomination of US$100 million, to the hotel.
The ICAC also found that TISONI, together with MARCOS, had in their custody 255 false US FRNs in the total sum of US$125 billion inside a room of the hotel.
The duo was also found possessing 441 counterfeit FRNs and three false US Federal Reserve Bonds in the total sum of US$48.4 billion in another room of the hotel.
Another forged 27 FRNs and other counterfeit securities including a fake Federal Reserve Certificate, a Gold and Silver Certificate, a Treasury Certificate, an Insurance Certificate and a Bank Certificate of the US, in the total sum of US$53 billion, were found inside a bank's safe deposit box opened by TISONI in another person's name.
The court also heard that TISONI had also given a bounced cheque for HK$1.6 million to settle accommodation expenses with the hotel, evading liability to make payment to the hotel by deception.
The prosecution was today represented by Government Counsel Richard Ma, assisted by ICAC officer Stella Leung.