Ex-Consulate staff gets two years for $1m false claims
2000-5-29
A former local employee of the United States Consulate General, charged by the ICAC, was jailed for two years at District Court today (Monday) for forging a number of invoices to make false claims totalling $1.1 million from the Consulate.
The false claims related to the supply of decorating materials for the Consulate.
Peggy Chung Sau-chun, 35, a former Procurement Supervisor of the US Consulate, earlier pleaded guilty to a total of 18 sample charges of forgery. She was also ordered to pay $100,000 in restitution.
Judge Sweeney said a custodial sentence was required to serve a deterrent effect, since the offences constituted a breach of trust.
The judge added that in sentencing, he had taken into account the defendant's clear records and pregnancy.
The court heard that Chung joined the Consulate in September 1984, and was promoted to Procurement Supervisor in 1994.
Since then, Chung was responsible for the procurement of services and decorating materials upon internal requests, such as furniture, curtains and carpets. She was also responsible for making purchases for other US official residences and embassies withi n the Asian region.
Between August 18, 1996 and January 31 last year, Chung had forged a number of invoices of four companies either exaggerating the amounts paid to suppliers or representing bogus transactions.
As a result of the scam, the Consulate had paid at least $1.1 million more than required by the genuine transactions.
The court was told that Chung had deposited the $1.1 million into her husband's bank account.
The case originated from a report referred by the Consulate, which suspected an employee was involved in corruption when handling the Consulate's procurement matters. The corruption allegation was found to be unsubstantiated.
The prosecution was today represented by Senior Government Counsel Gramsci Difazio, assisted by ICAC officer Stella Leung.
The false claims related to the supply of decorating materials for the Consulate.
Peggy Chung Sau-chun, 35, a former Procurement Supervisor of the US Consulate, earlier pleaded guilty to a total of 18 sample charges of forgery. She was also ordered to pay $100,000 in restitution.
Judge Sweeney said a custodial sentence was required to serve a deterrent effect, since the offences constituted a breach of trust.
The judge added that in sentencing, he had taken into account the defendant's clear records and pregnancy.
The court heard that Chung joined the Consulate in September 1984, and was promoted to Procurement Supervisor in 1994.
Since then, Chung was responsible for the procurement of services and decorating materials upon internal requests, such as furniture, curtains and carpets. She was also responsible for making purchases for other US official residences and embassies withi n the Asian region.
Between August 18, 1996 and January 31 last year, Chung had forged a number of invoices of four companies either exaggerating the amounts paid to suppliers or representing bogus transactions.
As a result of the scam, the Consulate had paid at least $1.1 million more than required by the genuine transactions.
The court was told that Chung had deposited the $1.1 million into her husband's bank account.
The case originated from a report referred by the Consulate, which suspected an employee was involved in corruption when handling the Consulate's procurement matters. The corruption allegation was found to be unsubstantiated.
The prosecution was today represented by Senior Government Counsel Gramsci Difazio, assisted by ICAC officer Stella Leung.