Couple accused of defrauding $25m loans and L/C facilities
2000-10-23
A married couple who had allegedly used bogus transactions between three companies owned by them to defraud banks of mortgage loans and Letters of Credit (L/Cs) facilities totalling about $25 million were charged by the ICAC today (Monday).
Chan Kin-chung, 37, and his wife Fong Shui-hing, 33, both shareholders and directors of Taiwell Investment Limited (Taiwell), faced a total of 12 offences when appearing at Eastern Court this afternoon.
No pleas were taken. Magistrate Mr Timothy Casewell adjourned the case until November 6 this year for transfer to District Court.
The case arose from a corruption complaint, alleging that Chan and Fong might have offered advantages in the application process. ICAC enquiries revealed the fraud offences.
Two of the charges alleged the couple of using false instruments, namely, provisional sale and purchase agreements of Property Investment Centre (PIC), with the intent to induce the staff of Sin Wah Bank Limited (Sin Wah) and the National Commercial Bank Limited (NCB) to accept the agreements as genuine.
They were also charged with two counts of obtaining mortgage loans totalling $12.9 million and letters of credit limits of $6.4 million in total from the two banks by deception.
It was alleged that they had falsely represented that the sale and purchase of two shops in Chatham Road South, Tsimshatsui between Taiwell and two other companies - Lloyds Group Limited (Lloyds) and Long Mass International Limited (Long Mass) - were genu ine transactions.
The defendants were also alleged to make false representations that such transactions were done at arm’s length and conducted by PIC.
Lloyds and Long Mass were owned by Chan and Fong through two British Virgin Islands-registered companies.
The remaining eight charges alleged that the duo had procured the making of entries of $6,221,476 in total in the records of Sin Hua and NCB by deception.
They were alleged to have falsely represented that there were genuine transactions of red wines and stainless steel coils between Taiwell and the other two companies, underlying eight L/Cs.
The alleged offences took place between May 4, 1997 and February 23, 1998.
The defendants were each granted bail of $100,000 in cash and $100,000 in surety. They were ordered to surrender all travel documents, not to leave Hong Kong, not to interfere with prosecution witnesses, and to report to the Police twice a week.
The prosecution was today represented by ICAC officer Henley Tsun Hon-yin.
Chan Kin-chung, 37, and his wife Fong Shui-hing, 33, both shareholders and directors of Taiwell Investment Limited (Taiwell), faced a total of 12 offences when appearing at Eastern Court this afternoon.
No pleas were taken. Magistrate Mr Timothy Casewell adjourned the case until November 6 this year for transfer to District Court.
The case arose from a corruption complaint, alleging that Chan and Fong might have offered advantages in the application process. ICAC enquiries revealed the fraud offences.
Two of the charges alleged the couple of using false instruments, namely, provisional sale and purchase agreements of Property Investment Centre (PIC), with the intent to induce the staff of Sin Wah Bank Limited (Sin Wah) and the National Commercial Bank Limited (NCB) to accept the agreements as genuine.
They were also charged with two counts of obtaining mortgage loans totalling $12.9 million and letters of credit limits of $6.4 million in total from the two banks by deception.
It was alleged that they had falsely represented that the sale and purchase of two shops in Chatham Road South, Tsimshatsui between Taiwell and two other companies - Lloyds Group Limited (Lloyds) and Long Mass International Limited (Long Mass) - were genu ine transactions.
The defendants were also alleged to make false representations that such transactions were done at arm’s length and conducted by PIC.
Lloyds and Long Mass were owned by Chan and Fong through two British Virgin Islands-registered companies.
The remaining eight charges alleged that the duo had procured the making of entries of $6,221,476 in total in the records of Sin Hua and NCB by deception.
They were alleged to have falsely represented that there were genuine transactions of red wines and stainless steel coils between Taiwell and the other two companies, underlying eight L/Cs.
The alleged offences took place between May 4, 1997 and February 23, 1998.
The defendants were each granted bail of $100,000 in cash and $100,000 in surety. They were ordered to surrender all travel documents, not to leave Hong Kong, not to interfere with prosecution witnesses, and to report to the Police twice a week.
The prosecution was today represented by ICAC officer Henley Tsun Hon-yin.