Duo jailed for fraud and money laundering over US oil field acquisition
2015-5-22
A businesswoman and a senior executive of a listed company, charged by the ICAC, were today (Friday) sentenced to jail terms up to seven years at the Court of First Instance for conspiracy to defraud in relation to the acquisition of an oil field in the United States of America (USA) and laundering crime proceeds.
Yik Siu-hung, 46, businesswoman, received a jail term of seven years, and Yip Sui-kuen Kitty, 45, deputy financial controller of Pearl Oriental Oil Limited (POOL), formerly known as Pearl Oriental Innovation Limited (POIL), was sentenced to five years’ imprisonment.
Yik and Yip were also each disqualified from being company directors for 10 years.
In passing the sentence, Madam Justice Anthea Pang Po-kam remarked that the offences committed by the convicted defendants, which were serious, had undermined the operations of the Stock Exchange of Hong Kong Limited (SEHK) and had an adverse impact on the general public.
Yik was found guilty by the jury of five charges – two of conspiracy to defraud, contrary to Common Law; and three of dealing with property known or believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organised and Serious Crimes Ordinance.
Yip was convicted by the jury of two charges – one of conspiracy to defraud and one of dealing with property known or believed to represent proceeds of an indictable offence.
The case arose from a corruption investigation, which was commenced in February 2012. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, POIL, a company listed on the SEHK, engaged in investment of natural resources. POIL was later renamed POOL.
At all material times, Wong Yuk-kwan alias Wong Kwan, was chairman and executive director of the company.
Yik was found guilty by the jury of a conspiracy to defraud charge, which alleged that between December 1, 2009 and May 17, 2011, then deputy chairman and executive director of POIL Lew Mon-hung, Yik and Yip conspired together with Wong to defraud the SEHK, by falsely representing that before the investment opportunity was first introduced to POIL by Marvel Sunlight Limited (MSL) and Charcon Assets Limited (CAL) for the acquisition of an oil field in Utah, USA, MSL had already reached an agreement for its investment with the owner of the oil field.
They had also falsely represented that MSL, being one of the vendors in POIL’s acquisition of the entire issued share capital of Festive Oasis Limited (FOL), and its beneficial owners were third parties independent of POIL and its connected persons; and the original acquisition cost incurred by CAL, a company solely owned by Wong, on 35 per cent interest of FOL was US$70 million.
As a result of the conspiracy, the SEHK was caused to allow the publication by POIL of an announcement and a circular in relation to the acquisition of the entire issued share capital of FOL. Lew and Yip were found not guilty of this charge by the jury.
Yik, together with Yip, was further jointly convicted by the jury of another conspiracy to defraud charge, which alleged that during the abovementioned period, Lew, Yik and Yip conspired together with Wong, made similar false representations to POIL, its existing shareholders and potential investors, and caused POIL to approve the agreement for the acquisition and the allotment and issue of new shares for its payment. Lew was found not guilty of this charge by the jury.
Yik was further convicted of three charges, which alleged that Yik had dealt with two properties worth HK$390 million in total and 282,600,000 shares of POIL between March 9, 2010 and May 17, 2011, knowing or having reasonable grounds to believe that the properties and shares represented proceeds of an indictable offence.
The jury further found Yip guilty of laundering $3 million in crime proceeds on January 26, 2011.
The prosecution was today represented by prosecuting counsel Keith Oderberg, assisted by ICAC officer William Lam.
Yik Siu-hung, 46, businesswoman, received a jail term of seven years, and Yip Sui-kuen Kitty, 45, deputy financial controller of Pearl Oriental Oil Limited (POOL), formerly known as Pearl Oriental Innovation Limited (POIL), was sentenced to five years’ imprisonment.
Yik and Yip were also each disqualified from being company directors for 10 years.
In passing the sentence, Madam Justice Anthea Pang Po-kam remarked that the offences committed by the convicted defendants, which were serious, had undermined the operations of the Stock Exchange of Hong Kong Limited (SEHK) and had an adverse impact on the general public.
Yik was found guilty by the jury of five charges – two of conspiracy to defraud, contrary to Common Law; and three of dealing with property known or believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organised and Serious Crimes Ordinance.
Yip was convicted by the jury of two charges – one of conspiracy to defraud and one of dealing with property known or believed to represent proceeds of an indictable offence.
The case arose from a corruption investigation, which was commenced in February 2012. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, POIL, a company listed on the SEHK, engaged in investment of natural resources. POIL was later renamed POOL.
At all material times, Wong Yuk-kwan alias Wong Kwan, was chairman and executive director of the company.
Yik was found guilty by the jury of a conspiracy to defraud charge, which alleged that between December 1, 2009 and May 17, 2011, then deputy chairman and executive director of POIL Lew Mon-hung, Yik and Yip conspired together with Wong to defraud the SEHK, by falsely representing that before the investment opportunity was first introduced to POIL by Marvel Sunlight Limited (MSL) and Charcon Assets Limited (CAL) for the acquisition of an oil field in Utah, USA, MSL had already reached an agreement for its investment with the owner of the oil field.
They had also falsely represented that MSL, being one of the vendors in POIL’s acquisition of the entire issued share capital of Festive Oasis Limited (FOL), and its beneficial owners were third parties independent of POIL and its connected persons; and the original acquisition cost incurred by CAL, a company solely owned by Wong, on 35 per cent interest of FOL was US$70 million.
As a result of the conspiracy, the SEHK was caused to allow the publication by POIL of an announcement and a circular in relation to the acquisition of the entire issued share capital of FOL. Lew and Yip were found not guilty of this charge by the jury.
Yik, together with Yip, was further jointly convicted by the jury of another conspiracy to defraud charge, which alleged that during the abovementioned period, Lew, Yik and Yip conspired together with Wong, made similar false representations to POIL, its existing shareholders and potential investors, and caused POIL to approve the agreement for the acquisition and the allotment and issue of new shares for its payment. Lew was found not guilty of this charge by the jury.
Yik was further convicted of three charges, which alleged that Yik had dealt with two properties worth HK$390 million in total and 282,600,000 shares of POIL between March 9, 2010 and May 17, 2011, knowing or having reasonable grounds to believe that the properties and shares represented proceeds of an indictable offence.
The jury further found Yip guilty of laundering $3 million in crime proceeds on January 26, 2011.
The prosecution was today represented by prosecuting counsel Keith Oderberg, assisted by ICAC officer William Lam.