Ex-general manager of pharmaceutical wholesaler and two others charged by ICAC for .1m service fees fraud jailed for up to 26 months
2026-5-26
An ICAC corruption investigation revealed that a then general manager of a pharmaceutical wholesaler made false representations regarding consultancy services provided by a secretarial services company operated by his subordinate to defraud the pharmaceutical wholesaler of service fees totalling about .1 million, while a business partner of the subordinate had assisted in money-laundering. The trio were today (May 26) sentenced at the District Court to jail terms ranging from 10 to 26 months.
Watson Yau Wei-ching, 56, then general manager of Kingworld Medicine Healthcare Limited (Kingworld Medicine), was jailed for 26 months; his then subordinate Alen Yu Yuen-to, 44, then marketing officer of Kingworld Medicine and director cum shareholder of Asia Great Services Limited (Asia Great), received a jail term of 20 months. The duo earlier pleaded guilty to two counts of fraud, contrary to section 16A of the Theft Ordinance.
Co-defendant Chau Pak-ho, 41, another director cum shareholder of Asia Great, was sentenced to 10 months’ imprisonment. He earlier pleaded guilty to one count of dealing with property known or believed to represent proceeds of an indictable offence (commonly known as money laundering).
In sentencing, Judge Mr Ernest Lin Kam-hung reprimanded Yau for abusing his official capacity to defraud the employer of money in an organised manner over a long period. His criminal act had undermined Hong Kong’s business environment.
Following Yau’s payment of about $770,000 in compensation to Kingworld Medicine, the prosecution filed an application with the court today to confiscate his remaining crime proceeds totalling about $300,000. In allowing the application, the judge ordered Yau to satisfy the confiscation order within six months, failing which Yau will have to serve an additional prison term of 14 months.
The above offences were revealed during an ICAC investigation arising from a corruption complaint. At the material time, Kingworld Medicine was a distributor and wholesaler of pharmaceuticals and healthcare products in Hong Kong and Chinese Mainland, while Asia Great was a provider of secretarial and accounting services.
The court heard that between February 2017 and May 2022, Yu prepared seven invoices issued by Asia Great upon Yau’s instruction, to falsely represent that Asia Great had provided consultancy services regarding food nutrient labelling, legal regulations and import and export licensing, etc., to Kingworld Medicine. Yau then submitted those invoices to Kingworld Medicine to deceive the company into paying consultancy service fees totalling over $530,000 to Asia Great.
Yau and Yu also deployed similar means to deceive Hong Kong Ling Feng Advertising Company Limited (Ling Feng), a contracted advertising agency of Kingworld Medicine, into assisting them to reimburse fees of Asia Great. Yau made false representations to Ling Feng that Asia Great had provided consultancy services to Kingworld, and advised Ling Feng to make payment to Asia Great by deducting the amount prepaid by Kingworld Medicine to Ling Feng under an annual advertising contract.
Between March 2019 and September 2023, Yau submitted six invoices issued by Asia Great to Ling Feng to deceive the latter into paying consultancy service fees totalling over $540,000 to Asia Great on behalf of Kingworld Medicine.
The ICAC enquiries revealed that Asia Great had never provided any services to Kingworld Medicine despite receiving service fees totalling about .1 million. Chau assisted in handling $180,000 of the crime proceeds and transferred the sum to Yau.
Kingworld Medicine rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by Senior Public Prosecutors Cherry Chong and Catherine Xiao, assisted by ICAC officers Giggs Poon and Gavin Lau.
Watson Yau Wei-ching, 56, then general manager of Kingworld Medicine Healthcare Limited (Kingworld Medicine), was jailed for 26 months; his then subordinate Alen Yu Yuen-to, 44, then marketing officer of Kingworld Medicine and director cum shareholder of Asia Great Services Limited (Asia Great), received a jail term of 20 months. The duo earlier pleaded guilty to two counts of fraud, contrary to section 16A of the Theft Ordinance.
Co-defendant Chau Pak-ho, 41, another director cum shareholder of Asia Great, was sentenced to 10 months’ imprisonment. He earlier pleaded guilty to one count of dealing with property known or believed to represent proceeds of an indictable offence (commonly known as money laundering).
In sentencing, Judge Mr Ernest Lin Kam-hung reprimanded Yau for abusing his official capacity to defraud the employer of money in an organised manner over a long period. His criminal act had undermined Hong Kong’s business environment.
Following Yau’s payment of about $770,000 in compensation to Kingworld Medicine, the prosecution filed an application with the court today to confiscate his remaining crime proceeds totalling about $300,000. In allowing the application, the judge ordered Yau to satisfy the confiscation order within six months, failing which Yau will have to serve an additional prison term of 14 months.
The above offences were revealed during an ICAC investigation arising from a corruption complaint. At the material time, Kingworld Medicine was a distributor and wholesaler of pharmaceuticals and healthcare products in Hong Kong and Chinese Mainland, while Asia Great was a provider of secretarial and accounting services.
The court heard that between February 2017 and May 2022, Yu prepared seven invoices issued by Asia Great upon Yau’s instruction, to falsely represent that Asia Great had provided consultancy services regarding food nutrient labelling, legal regulations and import and export licensing, etc., to Kingworld Medicine. Yau then submitted those invoices to Kingworld Medicine to deceive the company into paying consultancy service fees totalling over $530,000 to Asia Great.
Yau and Yu also deployed similar means to deceive Hong Kong Ling Feng Advertising Company Limited (Ling Feng), a contracted advertising agency of Kingworld Medicine, into assisting them to reimburse fees of Asia Great. Yau made false representations to Ling Feng that Asia Great had provided consultancy services to Kingworld, and advised Ling Feng to make payment to Asia Great by deducting the amount prepaid by Kingworld Medicine to Ling Feng under an annual advertising contract.
Between March 2019 and September 2023, Yau submitted six invoices issued by Asia Great to Ling Feng to deceive the latter into paying consultancy service fees totalling over $540,000 to Asia Great on behalf of Kingworld Medicine.
The ICAC enquiries revealed that Asia Great had never provided any services to Kingworld Medicine despite receiving service fees totalling about .1 million. Chau assisted in handling $180,000 of the crime proceeds and transferred the sum to Yau.
Kingworld Medicine rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by Senior Public Prosecutors Cherry Chong and Catherine Xiao, assisted by ICAC officers Giggs Poon and Gavin Lau.