Court orders to confiscate HK$12m from two convicts in ICAC case
2021-1-18
The High Court today (January 18) ordered to confiscate a total of HK$12 million from a former businesswoman and a former senior executive of a listed company convicted in an ICAC case of 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, 51, former businesswoman, was convicted at the Court of First Instance by the jury on May 20, 2015 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 (OSCO).
Co-defendant Yip Sui-kuen Kitty, 51, former deputy financial controller of Pearl Oriental Oil Limited (POOL), formerly known as Pearl Oriental Innovation Limited (POIL), 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.
Following their convictions, Yik and Yip were respectively sentenced to seven years and five years in jail on May 22, 2015. Prior to sentencing, the prosecution made an application for a confiscation order against the duo under Section 8 of the OSCO.
Pursuant to the application, Madam Justice Anthea Pang Po-kam today made a confiscation order of HK$9 million against Yik and HK$3 million against Yip. Yik and Yip were ordered to satisfy the order within six months and three months respectively.
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 Stock Exchange of Hong Kong Limited (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, 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.
Yik, together with Yip, was further jointly convicted by the jury of another conspiracy to defraud charge, which alleged that during the abovementioned period, then deputy chairman and executive director of POIL, 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.
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 represented by Senior Public Prosecutor Andrew Li, assisted by ICAC officers Sudhir Gidwani and Keith Kwok.
Yik Siu-hung, 51, former businesswoman, was convicted at the Court of First Instance by the jury on May 20, 2015 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 (OSCO).
Co-defendant Yip Sui-kuen Kitty, 51, former deputy financial controller of Pearl Oriental Oil Limited (POOL), formerly known as Pearl Oriental Innovation Limited (POIL), 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.
Following their convictions, Yik and Yip were respectively sentenced to seven years and five years in jail on May 22, 2015. Prior to sentencing, the prosecution made an application for a confiscation order against the duo under Section 8 of the OSCO.
Pursuant to the application, Madam Justice Anthea Pang Po-kam today made a confiscation order of HK$9 million against Yik and HK$3 million against Yip. Yik and Yip were ordered to satisfy the order within six months and three months respectively.
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 Stock Exchange of Hong Kong Limited (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, 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.
Yik, together with Yip, was further jointly convicted by the jury of another conspiracy to defraud charge, which alleged that during the abovementioned period, then deputy chairman and executive director of POIL, 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.
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 represented by Senior Public Prosecutor Andrew Li, assisted by ICAC officers Sudhir Gidwani and Keith Kwok.