Company director gets 30 months for bribery over US$4m bank loan
2014-12-2
A director of an investment company, charged by the ICAC, was today (Tuesday) sentenced to 30 months’ imprisonment at the District Court after being convicted of offering a bribe to a senior executive of a bank in return for a US$4 million loan.
Zhong Yuan-wei, 40, director of C&S (Hong Kong) International Holdings Limited (C&S), was today found guilty of one count of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance.
Judge Josiah Lam Wai-kuen reprimanded Zhong for committing a serious offence that adversely affected the society and the business environment and warranted a custodial sentence.
The court heard that at the material time, Zhong was the sole director of C&S, a shell company with no business address in Hong Kong.
Zhong opened two accounts under the name of C&S with the Hongkong and Shanghai Banking Corporation Limited (HSBC). Of those bank accounts, Zhong was the sole signatory.
In May 2013, Zhong visited the office of the HSBC Commercial Banking Centre and met with a vice president of HSBC to enquire about the procedures for applying a mortgage loan, the court heard.
On October 9, 2013, Zhong sent an e-mail to the vice president, stating that he had recently secured a number of business projects, including rosewood timber business on the Solomon Islands.
In the e-mail, Zhong said he wished to seek the vice president’s assistance in obtaining financial assistance for the projects. If the vice president would assist him in securing the necessary funding for C&S, he would offer a reward to her.
The court heard that the vice president reported the matter to HSBC, which subsequently referred it to the ICAC.
On January 15, 2014, the vice president met Zhong in the banking centre where Zhong sought her assistance in securing a loan of US$4 million to finance his rosewood timber contract worth US$20 million on the Solomon Islands.
Zhong also told the vice president that if she could help him secure the loan from HSBC, he would offer her a certain percentage of the loan amount as commission.
Quoting an example that if the loan amount secured from HSBC was US$9 million, Zhong said he would give the vice president US$1 million as commission.
Zhong was subsequently arrested by ICAC officers, the court was told.
HSBC had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by Senior Public Prosecutor Matthew Leung and assisted by ICAC officer May Lam.
Zhong Yuan-wei, 40, director of C&S (Hong Kong) International Holdings Limited (C&S), was today found guilty of one count of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance.
Judge Josiah Lam Wai-kuen reprimanded Zhong for committing a serious offence that adversely affected the society and the business environment and warranted a custodial sentence.
The court heard that at the material time, Zhong was the sole director of C&S, a shell company with no business address in Hong Kong.
Zhong opened two accounts under the name of C&S with the Hongkong and Shanghai Banking Corporation Limited (HSBC). Of those bank accounts, Zhong was the sole signatory.
In May 2013, Zhong visited the office of the HSBC Commercial Banking Centre and met with a vice president of HSBC to enquire about the procedures for applying a mortgage loan, the court heard.
On October 9, 2013, Zhong sent an e-mail to the vice president, stating that he had recently secured a number of business projects, including rosewood timber business on the Solomon Islands.
In the e-mail, Zhong said he wished to seek the vice president’s assistance in obtaining financial assistance for the projects. If the vice president would assist him in securing the necessary funding for C&S, he would offer a reward to her.
The court heard that the vice president reported the matter to HSBC, which subsequently referred it to the ICAC.
On January 15, 2014, the vice president met Zhong in the banking centre where Zhong sought her assistance in securing a loan of US$4 million to finance his rosewood timber contract worth US$20 million on the Solomon Islands.
Zhong also told the vice president that if she could help him secure the loan from HSBC, he would offer her a certain percentage of the loan amount as commission.
Quoting an example that if the loan amount secured from HSBC was US$9 million, Zhong said he would give the vice president US$1 million as commission.
Zhong was subsequently arrested by ICAC officers, the court was told.
HSBC had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by Senior Public Prosecutor Matthew Leung and assisted by ICAC officer May Lam.