ICAC probes ‘window’ company for alleged $92m L/C fraud
2000-3-22
In an operation which commenced on Monday (March 20), the ICAC has arrested six people, including a director, a financial controller and an accounting clerk of a Mainland's window company in Hong Kong, for an alleged $92 million Letters of Credit (L/C) fr aud facilitated by bribery.
The investigation originated from a complaint, alleging that some bank officers might have accepted bribes for granting L/C applications.
The other three arrested were a financial officer and a director of a local investment company and the proprietor of a chemicals company.
ICAC enquiries revealed that the six arrested had allegedly conspired to use false documents to apply for a total of 20 L/Cs from three banks between 1997 and 1998.
Such bogus documents purportedly showed that there were business transactions amongst the Mainland's window company and the related companies.
The bogus transactions allegedly related to the sale and purchase of a total of 80,000 metric-tons of steel bars for construction use.
Under the scam, three banks in Hong Kong were deceived into issuing L/Cs worth $92 million in total, about half of the amounts had turned bad debts.
It was also alleged that the L/C funds fraudulently obtained had been used by the directors of the Mainland's window company for speculation in the property and stock markets.
The ICAC will continue its investigation into the corruption allegations regarding bank staff.
The arrestees have all been released on bail, pending further enquiries.
The investigation originated from a complaint, alleging that some bank officers might have accepted bribes for granting L/C applications.
The other three arrested were a financial officer and a director of a local investment company and the proprietor of a chemicals company.
ICAC enquiries revealed that the six arrested had allegedly conspired to use false documents to apply for a total of 20 L/Cs from three banks between 1997 and 1998.
Such bogus documents purportedly showed that there were business transactions amongst the Mainland's window company and the related companies.
The bogus transactions allegedly related to the sale and purchase of a total of 80,000 metric-tons of steel bars for construction use.
Under the scam, three banks in Hong Kong were deceived into issuing L/Cs worth $92 million in total, about half of the amounts had turned bad debts.
It was also alleged that the L/C funds fraudulently obtained had been used by the directors of the Mainland's window company for speculation in the property and stock markets.
The ICAC will continue its investigation into the corruption allegations regarding bank staff.
The arrestees have all been released on bail, pending further enquiries.