Trio alleged of bank reference fraud
2000-3-2
Three men, including a branch manager of the Bank of China, were charged by the ICAC for their alleged conspiracy to cause the bank to issue an inaccurate reference letter certifying that an investment company's bank accounts had an eight-digit balance.
The trio appeared in Eastern Court today (Thursday). Magistrate Mr Ian Candy adjourned the case until March 23, 2000, pending transfer to District Court.
The three defendants were Pun Wai-hei, 41, director and shareholder of C K Economic Development Limited (CKEDL), Luo Wei-wen, 43, former manager of CKEDL, Pau Cheong-fu, 48, manager of the Bank of Chins's Queen's Road East Sub-branch.
CKEDL deals in real estate investments on the Mainland.
It was alleged that the bank reference letter was required by CKEDL to show credit worthiness for joining a consortium involved in a Guangzhou development.
The case originated from a complaint, alleging that a company director might have offered advantages to a branch manager of a bank as a reward for issuing a bank reference letter.
Pun, Luo and Pau were alleged to have conspired together to defraud companies, firms or people who might rely on the contents of a bank reference letter for business purpose by dishonestly:
l causing the creation of a purported credit balance of $12,500,000 by depositing a cheque for the same sum into the bank account of CKEDL with the bank, knowing that the cheque would be dishonoured in due course;
l causing the bank to issue a bank reference letter to certify on August 14, 1998 that the current balance of the bank accounts of CKEDL was of low-eight digit figures as at August 13, 1998;
l causing the bank reference letter to be released to Luo at about 12 noon of August 14, 1998, knowing that the cheque would be dishonoured in the afternoon of the same day; and
l causing the bank to certify the financing standing of CKEDL as at August 13, 1998 when they knew the contents of the bank reference letter were deceptive, misleading and did not reflect the true financial standing of CKEDL.
The trio also faced an alternative charge of conspiring together that Pau, being an employee of the Bank of China, had used a bank reference letter with intent to deceive his employer, contrary to Section 9(3) of the Prevention of Bribery Ordinance.
The bank reference letter allegedly contained a false statement concerning the current balance of the bank accounts of CKEDL.
The alleged offences took place between August 12 and 19, 1998.
The defendants were granted bail ranging from $20,000 to $50,000, and were ordered to report to the Police twice a week, and not to interfere with prosecution witnesses. Luo and Pau were also ordered to surrender all travel documents and not to leave Hon g Kong.
The prosecution was today represented by Senior Government Counsel Liu Yuen-ming, assisted by ICAC officer Herbert Lee.
The trio appeared in Eastern Court today (Thursday). Magistrate Mr Ian Candy adjourned the case until March 23, 2000, pending transfer to District Court.
The three defendants were Pun Wai-hei, 41, director and shareholder of C K Economic Development Limited (CKEDL), Luo Wei-wen, 43, former manager of CKEDL, Pau Cheong-fu, 48, manager of the Bank of Chins's Queen's Road East Sub-branch.
CKEDL deals in real estate investments on the Mainland.
It was alleged that the bank reference letter was required by CKEDL to show credit worthiness for joining a consortium involved in a Guangzhou development.
The case originated from a complaint, alleging that a company director might have offered advantages to a branch manager of a bank as a reward for issuing a bank reference letter.
Pun, Luo and Pau were alleged to have conspired together to defraud companies, firms or people who might rely on the contents of a bank reference letter for business purpose by dishonestly:
l causing the creation of a purported credit balance of $12,500,000 by depositing a cheque for the same sum into the bank account of CKEDL with the bank, knowing that the cheque would be dishonoured in due course;
l causing the bank to issue a bank reference letter to certify on August 14, 1998 that the current balance of the bank accounts of CKEDL was of low-eight digit figures as at August 13, 1998;
l causing the bank reference letter to be released to Luo at about 12 noon of August 14, 1998, knowing that the cheque would be dishonoured in the afternoon of the same day; and
l causing the bank to certify the financing standing of CKEDL as at August 13, 1998 when they knew the contents of the bank reference letter were deceptive, misleading and did not reflect the true financial standing of CKEDL.
The trio also faced an alternative charge of conspiring together that Pau, being an employee of the Bank of China, had used a bank reference letter with intent to deceive his employer, contrary to Section 9(3) of the Prevention of Bribery Ordinance.
The bank reference letter allegedly contained a false statement concerning the current balance of the bank accounts of CKEDL.
The alleged offences took place between August 12 and 19, 1998.
The defendants were granted bail ranging from $20,000 to $50,000, and were ordered to report to the Police twice a week, and not to interfere with prosecution witnesses. Luo and Pau were also ordered to surrender all travel documents and not to leave Hon g Kong.
The prosecution was today represented by Senior Government Counsel Liu Yuen-ming, assisted by ICAC officer Herbert Lee.