Ex-CEO cum director gets two years for .7m fraud
2015-6-3
A former chief executive officer (CEO) cum director of a catering company, charged by the ICAC, was today (Wednesday) sentenced to two years’ imprisonment at the District Court after being convicted of fraudulently awarding design work contracts worth over .7 million to his another firm.
Liu Kit-man, 53, former CEO cum director of Kabushikigaisha Limited (KL), was today found guilty of one count of fraud, contrary to Section 16A of the Theft Ordinance.
In sentencing, Judge Mr Timothy Casewell said the defendant’s concealment of his interests in the firm which provided services to KL constituted a breach of trust, warranting a custodial sentence.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offence.
The court heard that at the material time, the defendant was the CEO cum director of KL, which operated 18 restaurants in Hong Kong.
Meanwhile, the defendant held 30 per cent of the shares of Hong Kong Infix Design Co Limited (HKIDC), which was incorporated in August 2008.
Upon the recommendation of the defendant, KL approved the engagement of HKIDC to provide interior design work and services for KL restaurants in October 2008.
Between October 2008 and September 2011, KL awarded 13 contracts and an additional design job worth in total over .7 million to HKIDC. Payments were made after the contracts were performed.
During his tenure as CEO cum director of KL between August 2008 and January 2012, the defendant signed and submitted nine sets of declaration of interests forms to KL’s board of directors, yet he failed to disclose his interests as shareholder and director of HKIDC.
Had KL’s board of directors known of the defendant’s interests in HKIDC, the board would have sought quotations from other contractors for price comparison, and would not have agreed to the defendant deriving gain from such contracts, the court was told.
KL had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Neil Mitchell, assisted by ICAC officer Bonnie Mak.
Liu Kit-man, 53, former CEO cum director of Kabushikigaisha Limited (KL), was today found guilty of one count of fraud, contrary to Section 16A of the Theft Ordinance.
In sentencing, Judge Mr Timothy Casewell said the defendant’s concealment of his interests in the firm which provided services to KL constituted a breach of trust, warranting a custodial sentence.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offence.
The court heard that at the material time, the defendant was the CEO cum director of KL, which operated 18 restaurants in Hong Kong.
Meanwhile, the defendant held 30 per cent of the shares of Hong Kong Infix Design Co Limited (HKIDC), which was incorporated in August 2008.
Upon the recommendation of the defendant, KL approved the engagement of HKIDC to provide interior design work and services for KL restaurants in October 2008.
Between October 2008 and September 2011, KL awarded 13 contracts and an additional design job worth in total over .7 million to HKIDC. Payments were made after the contracts were performed.
During his tenure as CEO cum director of KL between August 2008 and January 2012, the defendant signed and submitted nine sets of declaration of interests forms to KL’s board of directors, yet he failed to disclose his interests as shareholder and director of HKIDC.
Had KL’s board of directors known of the defendant’s interests in HKIDC, the board would have sought quotations from other contractors for price comparison, and would not have agreed to the defendant deriving gain from such contracts, the court was told.
KL had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Neil Mitchell, assisted by ICAC officer Bonnie Mak.