Company director extradited from US jailed for $2.8m fraud
2015-6-9
A former subcontractor of the Highways Department (HyD), who returned voluntarily from the United States (US) to Hong Kong, was today (Tuesday) sentenced to 29 months and three weeks in jail after admitting conspiracy to defraud the main contractor and HyD of road maintenance works payments totalling over $2.8 million.
Ip Ching-sang, 58, former shareholder-cum-director of Hop Hei Engineering Company Limited (Hop Hei), today pleaded guilty to one count of conspiracy to defraud, contrary to Common Law.
In sentencing, District Court Judge Timothy Casewell said an immediate custodial sentence was imposed on Ip in view of the seriousness of his offence as well as safety issue.
The case arose from a corruption complaint received in 2005. Subsequent ICAC enquiries revealed the above offence of conspiracy to defraud.
The court heard that at the material time, Hop Hei was the subcontractor of Hung Mau Realty & Construction Limited (Hung Mau), the main contractor of a three-year road maintenance term contract awarded by HyD. Hop Hei was subcontracted to supply and paint a layer of cementitious material called “Nucem skim coat” to protect concrete surfaces of profile barriers.
Between 1999 and 2002, Ip conspired with other persons to defraud Hung Mau and HyD, their employees or agents.
They falsely represented that “Nucem skim coat” was sufficiently used in works carried under the term contract in respect of road maintenance works in Sha Tin, Sai Kung and Islands Districts.
They also caused Hung Mau and HyD, their employees or agents to be under a false impression that all the painting material used in the contract works was “Nucem skim coat”. Enquiries however revealed that Hop Hei had only procured about 26 per cent of the total volume of “Nucem skim coat” to be applied to the contract works.
As a result, Hung Mau and HyD were induced to release payments totalling over $2.8 million for the contract works, the court was told.
On January 9, 2011, Ip was arrested by ICAC officers when he returned to Hong Kong. He was then released on bail, pending further inquiries.
Ip failed to report bail to the ICAC on January 18, 2011, and a warrant was issued by a magistrate for his arrest.
On August 16, 2012, Ip was placed on the Interpol Red Notice for his apprehension. He was arrested in Seattle by officers of the US Marshals Service on December 1, 2014 at the request of the Department of Justice in Hong Kong.
Ip later waived his right for the extradition proceedings in the US, and agreed to return to Hong Kong voluntarily. Escorted by ICAC officers, Ip arrived in Hong Kong on February 5, 2015 to face prosecution.
The ICAC thanked the US Marshals Service as well as the US Federal Bureau of Investigation and the US Department of Justice for rendering valuable assistance in securing the arrest and extradition of Ip.
HyD had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by Senior Public Prosecutor Jonathan Lin, assisted by ICAC officer Angus Wong.
Ip Ching-sang, 58, former shareholder-cum-director of Hop Hei Engineering Company Limited (Hop Hei), today pleaded guilty to one count of conspiracy to defraud, contrary to Common Law.
In sentencing, District Court Judge Timothy Casewell said an immediate custodial sentence was imposed on Ip in view of the seriousness of his offence as well as safety issue.
The case arose from a corruption complaint received in 2005. Subsequent ICAC enquiries revealed the above offence of conspiracy to defraud.
The court heard that at the material time, Hop Hei was the subcontractor of Hung Mau Realty & Construction Limited (Hung Mau), the main contractor of a three-year road maintenance term contract awarded by HyD. Hop Hei was subcontracted to supply and paint a layer of cementitious material called “Nucem skim coat” to protect concrete surfaces of profile barriers.
Between 1999 and 2002, Ip conspired with other persons to defraud Hung Mau and HyD, their employees or agents.
They falsely represented that “Nucem skim coat” was sufficiently used in works carried under the term contract in respect of road maintenance works in Sha Tin, Sai Kung and Islands Districts.
They also caused Hung Mau and HyD, their employees or agents to be under a false impression that all the painting material used in the contract works was “Nucem skim coat”. Enquiries however revealed that Hop Hei had only procured about 26 per cent of the total volume of “Nucem skim coat” to be applied to the contract works.
As a result, Hung Mau and HyD were induced to release payments totalling over $2.8 million for the contract works, the court was told.
On January 9, 2011, Ip was arrested by ICAC officers when he returned to Hong Kong. He was then released on bail, pending further inquiries.
Ip failed to report bail to the ICAC on January 18, 2011, and a warrant was issued by a magistrate for his arrest.
On August 16, 2012, Ip was placed on the Interpol Red Notice for his apprehension. He was arrested in Seattle by officers of the US Marshals Service on December 1, 2014 at the request of the Department of Justice in Hong Kong.
Ip later waived his right for the extradition proceedings in the US, and agreed to return to Hong Kong voluntarily. Escorted by ICAC officers, Ip arrived in Hong Kong on February 5, 2015 to face prosecution.
The ICAC thanked the US Marshals Service as well as the US Federal Bureau of Investigation and the US Department of Justice for rendering valuable assistance in securing the arrest and extradition of Ip.
HyD had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by Senior Public Prosecutor Jonathan Lin, assisted by ICAC officer Angus Wong.