Window company's director and son charged for alleged $110m L/C fraud
2000-9-15
A director of a Mainland's window company and his son were today (Friday) charged by the ICAC for their alleged involvement in a $110 million Letters of Credit (L/C) fraud.
Li Runquan, 54, director of Ultragrace Limited (Ultragrace); and his son Lai Yu-hong, 27, director of Commercial Power Investment Limited (Commercial Power), appeared at San Po Kong Court this afternoon on a total of five counts of conspiracy to defraud.
No pleas were taken. Magistrate Mr Patrick Li adjourned the case to November 15, 2000 for mention. The defendants were each granted bail of $200,000 in cash.
Li Runquan is a member of the Standing Committee of the Sanshui City government in Guangdong, while Ultragrace is a window company of Sanshui City.
The ICAC commenced investigations after receiving a corruption complaint alleging that some bank officers might have accepted bribes for granting L/C applications. Six people were arrested during an operation in March this year
The two defendants, who were in the Mainland when the ICAC's investigation turned overt, were arrested by the ICAC last night after they returned to Hong Kong.
The charges alleged the defendants of conspiring with Chan Wai-lam, Li Yucheng, Yu Wai-tung, Chan Tsz-leung and others to defraud the Bank of China, the Bank of Communications and the Kwangtung Provincial Bank between May 1997 and October 1998.
The defendants were said to have used false documents to apply for a total of 27 L/Cs from the banks.
The bogus documents purportedly showed that there were business transactions amongst Ultragrace, Commercial Power, Keep Mount (Holdings) Limited and C&W Development Limited.
The banks subsequently released credit facilities totalling $110 million to the relevant companies.
The ICAC received full co-operation from the relevant banks during its investigation.
The prosecution was today represented by Senior Government Counsel Alex Lee, assisted by ICAC officer Chan Siu-yung.
The ICAC's inquiry into the corruption allegation is continuing.
Li Runquan, 54, director of Ultragrace Limited (Ultragrace); and his son Lai Yu-hong, 27, director of Commercial Power Investment Limited (Commercial Power), appeared at San Po Kong Court this afternoon on a total of five counts of conspiracy to defraud.
No pleas were taken. Magistrate Mr Patrick Li adjourned the case to November 15, 2000 for mention. The defendants were each granted bail of $200,000 in cash.
Li Runquan is a member of the Standing Committee of the Sanshui City government in Guangdong, while Ultragrace is a window company of Sanshui City.
The ICAC commenced investigations after receiving a corruption complaint alleging that some bank officers might have accepted bribes for granting L/C applications. Six people were arrested during an operation in March this year
The two defendants, who were in the Mainland when the ICAC's investigation turned overt, were arrested by the ICAC last night after they returned to Hong Kong.
The charges alleged the defendants of conspiring with Chan Wai-lam, Li Yucheng, Yu Wai-tung, Chan Tsz-leung and others to defraud the Bank of China, the Bank of Communications and the Kwangtung Provincial Bank between May 1997 and October 1998.
The defendants were said to have used false documents to apply for a total of 27 L/Cs from the banks.
The bogus documents purportedly showed that there were business transactions amongst Ultragrace, Commercial Power, Keep Mount (Holdings) Limited and C&W Development Limited.
The banks subsequently released credit facilities totalling $110 million to the relevant companies.
The ICAC received full co-operation from the relevant banks during its investigation.
The prosecution was today represented by Senior Government Counsel Alex Lee, assisted by ICAC officer Chan Siu-yung.
The ICAC's inquiry into the corruption allegation is continuing.