A sales manager and a businessman were jailed for 18 months and nine months respectively at District Court today (Monday) for defrauding $1 million by manipulating the sales of air-conditioning spare parts.

Wong Kwok-keung, 38, sales manager of Belimo Automation H.K. Ltd. (BAL), and Ho Kun-wing, 43, businessman, were earlier convicted of two joint charges of conspiracy to defraud BAL between February 1996 and December 1997.

In sentencing, Judge Wright said the conspiracy between the accused " resulted in a calculated, wilful and systematic operation " . The judge added that Wong ' s acts had constituted a breach of trust.

The two defendants had conspired to defraud BAL by dishonestly:

- causing BAL to sell its goods to three trading companies owned by Ho - China Electronics Trading (CETC), Favour Tech Industrial Limited (Favour Tech) and Preo Industries Far East Limited (Preo) - at substantially discounted prices which these companies we re not entitled to;

- concealing from BAL that CETC, Favour Tech and Preo had purchased the goods for and on behalf of Belimo Company (Belimo), which was wholly owned by Wong; and

- facilitating Belimo to sell the goods to customers who were led to believe that they were purchasing from BAL.

Wong sold BAL ' s products to CETC, Favour Tech and Preo at a discount and the goods were subsequently be supplied to BAL ' s clients by Belimo at a normal price.

The defendants had pocketed about $1 million from the price difference.

The case originated from a corruption complaint which alleged Wong of accepting advantages from Ho in return for supplying goods to Ho at a large discount. Subsequent investigations uncovered the $1 million fraud.

The prosecution was today represented by John Dunn on a fiat, assisted by ICAC officer Lawrence Mui.