Bank chief and five others face bribery and fraud charges over $880m credit scam
2000-11-8
The general manager and a credit manager of Hang Seng Bank Limited (HSB), together with four businessmen, were charged by the ICAC with a total of 32 bribery and fraud charges in relation to the granting of Letters of Credit worth over HK$880 million.
The six defendants appeared at Eastern Court this (Wednesday) morning.
Sau Ming, 54, general manager of HSB, faced 12 charges of accepting advantages in return for granting credit facilities to two companies between March 1994 and June 1998.
He was accused of having accepted from Ho Chi-chun of Au Kiang International Company Limited (Au Kiang) HK$1 million and US$75,000 in bribes and two Rolex watches in return for favours to Au Kiang and Dero Enterprises Limited (Dero) in the granting and maintaining of credit arrangements.
Lo Pui-shing, 47, credit manager of HSB, was charged with four counts of accepting bribes totalling HK$150,000 and a Rolex watch from Ho Siu-hoi for the same reason between April 1994 and August 1995.
Ho Siu-hoi, 31, shareholder-cum-director of Au Kiang and Dero, faced nine counts of conspiring with his father Ho Chi-chun and Yin Hueh-lan, financial controller of Au Kiang and Dero, to offer advantages, including HK$730,000, C$10,000 and three Rolex wat ches, to Lo and two other employees of HSB between April 1994 and November 1997.
The advantages were said for facilitating the granting of credit facilities to the two companies.
Ho Siu-hoi further faced four charges of conspiring with a number of people to defraud HSB by:
- causing Au Kiang and Dero to apply and utilise credit facilities from the bank in the form of 123 Letters of Credit (L/Cs) in total;
- submitting to the bank false documents which purportedly evidenced genuine commercial transactions between the above two companies and Star Regent International Limited and Sunmex Limited; and
- causing HSB to release a total of HK$463,635,818.40 under such L/Cs.
The remaining three defendants were Tam Kei-kwong, 48, shareholder-cum-director of Pure Guard Industrial Limited (Pure Guard) and former director of Sparkco International Limited (Sparkco); Leung Chi-por, 50, shareholder-cum-director of Pure Guard; and Le e Tsang-kong, 44, shareholder-cum-director of Sparkco.
Ho Siu-hoi, Tam and Leung jointly faced two counts of conspiracy to defraud HSB over the issue of 116 L/Cs totalling HK$400,909,150 in favour of Pure Guard.
Ho, Tam and Lee jointly faced one count of conspiracy to defraud HSB in relation to four other L/Cs worth HK$15,996,468 in total in favour of Sparkco.
The alleged fraud offences occurred between June 1995 and April 1998.
No pleas were taken. Magistrate Mr Ian Candy ordered Sau Ming and Ho Siu-hoi to appear in court again on December 20 this year, while the remaining four defendants were set for next court appearance on January 5 next year.
Meanwhile, the ICAC has uncovered a separate alleged credit scam involving Hua Chiao Commercial Bank Limited (Hua Chiao) in the course of its investigation into the HSB case.
Tam Kei-kwong, Leung Chi-por and Lee Tsang-kong were today charged in a separate case with a total of 17 offences of conspiracy to defraud Hua Chiao over the issue of L/Cs totalling more than HK$10 million.
The charges accused them of conspiring with Lam Shuk-yi, manageress of Dragon Marine Services Limited (Dragon Marine) and others to defraud Hua Chiao by dishonestly:
- causing Dragon Marine to apply and utilize credit facilities, in the form of L/Cs, from Hua Chiao;
- submitting to the bank false documents which purportedly evidenced genuine commercial transactions between Dragon Marine and Pure Guard; and
- causing the bank to release HK$10,515,000 in total to Pure Guard under such L/Cs.
The alleged offences took place between October 1993 and August 1997.
The case was adjourned until January 5 next year for mention.
The ICAC has obtained full assistance from HSB and Hua Chiao.
Sau and Ho Siu-hoi were remanded in the custody of the Correctional Services Department.
Lo was granted bail of $100,000 in cash and $100,000 in surety.
Tam and Leung were each granted bail of $100,000 in cash and $100,000 in surety, while Lee was granted bail of $50,000 in cash and $200,000 in surety for each of the two cases.
They were also ordered to surrender all travel documents to the ICAC, not to leave Hong Kong, not to interfere with prosecution witnesses, to reside at the reported address, to report to the ICAC three times a week, and to inform the ICAC within 24 hours of any change of address.
The prosecution of both cases was today represented by Senior Government Counsel Liu Yuen-ming, assisted by ICAC officer Raymond So.
The six defendants appeared at Eastern Court this (Wednesday) morning.
Sau Ming, 54, general manager of HSB, faced 12 charges of accepting advantages in return for granting credit facilities to two companies between March 1994 and June 1998.
He was accused of having accepted from Ho Chi-chun of Au Kiang International Company Limited (Au Kiang) HK$1 million and US$75,000 in bribes and two Rolex watches in return for favours to Au Kiang and Dero Enterprises Limited (Dero) in the granting and maintaining of credit arrangements.
Lo Pui-shing, 47, credit manager of HSB, was charged with four counts of accepting bribes totalling HK$150,000 and a Rolex watch from Ho Siu-hoi for the same reason between April 1994 and August 1995.
Ho Siu-hoi, 31, shareholder-cum-director of Au Kiang and Dero, faced nine counts of conspiring with his father Ho Chi-chun and Yin Hueh-lan, financial controller of Au Kiang and Dero, to offer advantages, including HK$730,000, C$10,000 and three Rolex wat ches, to Lo and two other employees of HSB between April 1994 and November 1997.
The advantages were said for facilitating the granting of credit facilities to the two companies.
Ho Siu-hoi further faced four charges of conspiring with a number of people to defraud HSB by:
- causing Au Kiang and Dero to apply and utilise credit facilities from the bank in the form of 123 Letters of Credit (L/Cs) in total;
- submitting to the bank false documents which purportedly evidenced genuine commercial transactions between the above two companies and Star Regent International Limited and Sunmex Limited; and
- causing HSB to release a total of HK$463,635,818.40 under such L/Cs.
The remaining three defendants were Tam Kei-kwong, 48, shareholder-cum-director of Pure Guard Industrial Limited (Pure Guard) and former director of Sparkco International Limited (Sparkco); Leung Chi-por, 50, shareholder-cum-director of Pure Guard; and Le e Tsang-kong, 44, shareholder-cum-director of Sparkco.
Ho Siu-hoi, Tam and Leung jointly faced two counts of conspiracy to defraud HSB over the issue of 116 L/Cs totalling HK$400,909,150 in favour of Pure Guard.
Ho, Tam and Lee jointly faced one count of conspiracy to defraud HSB in relation to four other L/Cs worth HK$15,996,468 in total in favour of Sparkco.
The alleged fraud offences occurred between June 1995 and April 1998.
No pleas were taken. Magistrate Mr Ian Candy ordered Sau Ming and Ho Siu-hoi to appear in court again on December 20 this year, while the remaining four defendants were set for next court appearance on January 5 next year.
Meanwhile, the ICAC has uncovered a separate alleged credit scam involving Hua Chiao Commercial Bank Limited (Hua Chiao) in the course of its investigation into the HSB case.
Tam Kei-kwong, Leung Chi-por and Lee Tsang-kong were today charged in a separate case with a total of 17 offences of conspiracy to defraud Hua Chiao over the issue of L/Cs totalling more than HK$10 million.
The charges accused them of conspiring with Lam Shuk-yi, manageress of Dragon Marine Services Limited (Dragon Marine) and others to defraud Hua Chiao by dishonestly:
- causing Dragon Marine to apply and utilize credit facilities, in the form of L/Cs, from Hua Chiao;
- submitting to the bank false documents which purportedly evidenced genuine commercial transactions between Dragon Marine and Pure Guard; and
- causing the bank to release HK$10,515,000 in total to Pure Guard under such L/Cs.
The alleged offences took place between October 1993 and August 1997.
The case was adjourned until January 5 next year for mention.
The ICAC has obtained full assistance from HSB and Hua Chiao.
Sau and Ho Siu-hoi were remanded in the custody of the Correctional Services Department.
Lo was granted bail of $100,000 in cash and $100,000 in surety.
Tam and Leung were each granted bail of $100,000 in cash and $100,000 in surety, while Lee was granted bail of $50,000 in cash and $200,000 in surety for each of the two cases.
They were also ordered to surrender all travel documents to the ICAC, not to leave Hong Kong, not to interfere with prosecution witnesses, to reside at the reported address, to report to the ICAC three times a week, and to inform the ICAC within 24 hours of any change of address.
The prosecution of both cases was today represented by Senior Government Counsel Liu Yuen-ming, assisted by ICAC officer Raymond So.