Ex-employees of FedEx jailed for deceiving $470,000 courier fees
2010-12-14
Two former employees of Federal Express (Hong Kong) Limited (FedEx) were today (Tuesday) sent to jail at the District Court for understating the weights of customers’ parcels on air waybills to deceive over $470,000 in courier fees from the company.
Victor Fung Hing-wai, 41, former operations coordinator of FedEx, received a jail sentence of 15 months; while Alex Lo Ying-kit, 33, former courier of FedEx, was jailed for 11 months.
In sentencing, Judge Anthea Pang Po-kam said the court had to mete out custodial sentences to the defendants in view of their breach of trust placed in them by their employer.
The judge also remarked that the fraudulent scam lasted one and a half years, and caused their employer to suffer losses in courier fees.
Fung and Lo earlier pleaded guilty to two joint charges of conspiracy of agents to use documents to deceive their principal, contrary to Section 9(3) of Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance. A similar conspiracy charge against them was ordered to be left on court file.
The court heard that at the time of the offences, Fung used two companies under his control, Leader Trading Company (LTC) and Well Smart International Trading Limited (WSIT), to conduct co-loading business with FedEx.
Under the arrangement, LTC and WSIT engaged FedEx’s delivery services at a discounted rate. Fung then offered a lesser discount to customers, and gained profits from the differences.
Fung also invited Lo to join in the business, and agreed to share the profits with him.
The court heard that Lo then persuaded two FedEx customers to engage the services of LTC and WSIT respectively.
Having collected the parcels from the two customers, Fung and Lo reduced their weights to around one-tenth by inserting a decimal to the weights specified on the copies of the FedEx air waybills.
Between June 2007 and September 2008, Fung and Lo understated the weights of a customer’s parcels in 93 transactions from about 2,110 kilograms to about 240 kilograms, causing FedEx to suffer a loss of over $206,000.
Similarly, Fung and Lo understated the weights of another customer’s parcels in 47 transactions from about 3,250 kilograms to about 330 kilograms between January and December 2008. As a result, FedEx was caused to suffer a loss of over $270,000, the court was told.
The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Lam Cheuk-ting.
Victor Fung Hing-wai, 41, former operations coordinator of FedEx, received a jail sentence of 15 months; while Alex Lo Ying-kit, 33, former courier of FedEx, was jailed for 11 months.
In sentencing, Judge Anthea Pang Po-kam said the court had to mete out custodial sentences to the defendants in view of their breach of trust placed in them by their employer.
The judge also remarked that the fraudulent scam lasted one and a half years, and caused their employer to suffer losses in courier fees.
Fung and Lo earlier pleaded guilty to two joint charges of conspiracy of agents to use documents to deceive their principal, contrary to Section 9(3) of Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance. A similar conspiracy charge against them was ordered to be left on court file.
The court heard that at the time of the offences, Fung used two companies under his control, Leader Trading Company (LTC) and Well Smart International Trading Limited (WSIT), to conduct co-loading business with FedEx.
Under the arrangement, LTC and WSIT engaged FedEx’s delivery services at a discounted rate. Fung then offered a lesser discount to customers, and gained profits from the differences.
Fung also invited Lo to join in the business, and agreed to share the profits with him.
The court heard that Lo then persuaded two FedEx customers to engage the services of LTC and WSIT respectively.
Having collected the parcels from the two customers, Fung and Lo reduced their weights to around one-tenth by inserting a decimal to the weights specified on the copies of the FedEx air waybills.
Between June 2007 and September 2008, Fung and Lo understated the weights of a customer’s parcels in 93 transactions from about 2,110 kilograms to about 240 kilograms, causing FedEx to suffer a loss of over $206,000.
Similarly, Fung and Lo understated the weights of another customer’s parcels in 47 transactions from about 3,250 kilograms to about 330 kilograms between January and December 2008. As a result, FedEx was caused to suffer a loss of over $270,000, the court was told.
The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Lam Cheuk-ting.