Ex-employee of labour hire agency jailed for three years for fraud and theft over $3.1m wage payments
2021-1-22
A former employee of a labour hire agency charged in an ICAC case was today (January 22) sentenced to three years’ imprisonment at the District Court after pleading guilty to fraud and theft involving over $3.1 million by using false payroll documents of construction workers.
The ICAC case arose from a corruption complaint. Subsequent enquiries revealed the offences.
Popo Chan Ka-po, 31, former human resources officer of Lingma Construction & Engineering Limited (Lingma), today pleaded guilty to 14 charges – one of fraud, contrary to Section 16A(1) of the Theft Ordinance; and 13 of theft, contrary to Section 9 of the Theft Ordinance.
In sentencing, Judge Mr David Dufton said the crimes committed by the defendant, which involved substantial amount of money and lasted over a year, were serious.
The court heard that Lingma was a labour hire agency which provided temporary labour and payroll services to construction companies. Between May 2017 and October 2018, Lingma supplied construction workers to three main contractors for four infrastructure projects. Wages of the workers were calculated on a daily basis and paid monthly.
At the material time, the defendant was a human resources officer of Lingma responsible for handling payrolls of workers and arranging wage payments for the four aforesaid projects. Payrolls of workers were paid through the corporate account held by Lingma with a bank by autopay or cheque.
For autopay payments, the defendant would input details of the payments, including the wages to be paid to workers and their corresponding bank account numbers, into the autopay system of the bank.
ICAC enquiries revealed that between August 1, 2017 and August 6, 2018, the defendant made a total of 95 false entries into the aforesaid autopay system to purportedly show that 40 workers had attended work at the assigned workplaces and were entitled to the amount of wages stated.
The defendant had also replaced the workers’ bank account numbers with her three personal bank account numbers, the court heard.
Believing that the details stated in the payroll documents submitted by the defendant were accurate, Lingma approved releasing wage payments totalling over $2.5 million to the three bank accounts of the defendant.
ICAC investigation also revealed that the defendant falsely represented on 13 occasions between August 7, 2017 and August 6, 2018 that 24 cheques pre-signed by the management of Lingma were used to pay wages to workers and misappropriated a total of about $600,000 from the bank account of the company.
Lingma had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by Senior Public Prosecutor Paggie Lee, assisted by ICAC officer Rita Li.
The ICAC case arose from a corruption complaint. Subsequent enquiries revealed the offences.
Popo Chan Ka-po, 31, former human resources officer of Lingma Construction & Engineering Limited (Lingma), today pleaded guilty to 14 charges – one of fraud, contrary to Section 16A(1) of the Theft Ordinance; and 13 of theft, contrary to Section 9 of the Theft Ordinance.
In sentencing, Judge Mr David Dufton said the crimes committed by the defendant, which involved substantial amount of money and lasted over a year, were serious.
The court heard that Lingma was a labour hire agency which provided temporary labour and payroll services to construction companies. Between May 2017 and October 2018, Lingma supplied construction workers to three main contractors for four infrastructure projects. Wages of the workers were calculated on a daily basis and paid monthly.
At the material time, the defendant was a human resources officer of Lingma responsible for handling payrolls of workers and arranging wage payments for the four aforesaid projects. Payrolls of workers were paid through the corporate account held by Lingma with a bank by autopay or cheque.
For autopay payments, the defendant would input details of the payments, including the wages to be paid to workers and their corresponding bank account numbers, into the autopay system of the bank.
ICAC enquiries revealed that between August 1, 2017 and August 6, 2018, the defendant made a total of 95 false entries into the aforesaid autopay system to purportedly show that 40 workers had attended work at the assigned workplaces and were entitled to the amount of wages stated.
The defendant had also replaced the workers’ bank account numbers with her three personal bank account numbers, the court heard.
Believing that the details stated in the payroll documents submitted by the defendant were accurate, Lingma approved releasing wage payments totalling over $2.5 million to the three bank accounts of the defendant.
ICAC investigation also revealed that the defendant falsely represented on 13 occasions between August 7, 2017 and August 6, 2018 that 24 cheques pre-signed by the management of Lingma were used to pay wages to workers and misappropriated a total of about $600,000 from the bank account of the company.
Lingma had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by Senior Public Prosecutor Paggie Lee, assisted by ICAC officer Rita Li.