Prison terms for six in loan scam
2000-11-25
The District Court today (Saturday) meted out prison terms to six men who conspired to defraud a number of finance companies into issuing personal loans totalling $90,000 to unqualified borrowers by providing those borrowers with false supporting document s.
The court adjourned sentencing of another defendant charged in this case.
Leung Kin-man, 36, unemployed; and Chan Lap-keung, 49, partner of Cavendish System Incorporated Limited (Cavendish); were respectively jailed for 27 months and two years. Yu Yan-tim, 49, insurance agent, and Lai Fu-kuen, 35, partner of Maxcorp Pacific Co rporation (Maxcorp), were each jailed for 18 months.
The defendants were convicted on one count of conspiring with Tang Wing-kit, Loo Hung-fat, Lau Yuk-wing and others to defraud various lending institutions between October and November last year by :
- falsely representing that a number of non-eigible borrowers were duly employed by either Cavendish or Maxcorp;
- submitting false employment letters and salary cheques purportedly issued by Cavendish or Maxcorp; and
- providing false information to the lending institutions as to the identity of the referees.
Loo hung-fat, who claimed to be a trade representative of the Republic of Comoros, and Lau Yuk-wing, agency manager, earlier pleaded guilty to a total of three charges of furnishing false information. They were today each sentenced to six months’ imprisonment.
Tang, unemployed, was also found guilty and would be sentenced on December 8, 2000.
The case arose from corruption complaints alleging that employees of some finance companies had accepted bribes in return for approving loan applications supported with false documents.
The court heard that Leung Kin-man and Yu Yan-tim, who were at the centre of the loan scam syndicate, charged each applicant 10% to 40% of the loans obtained as a handling fee.
Between October and November last year, a total of $90,000 in loans were issued to various unqualified applicants by four finance companies, based on false employment documents and bogus referees provided by the syndicate.
The prosecution was today represented by Richard Donald on a fiat, assisted by ICAC officer Robert Pang.
The court adjourned sentencing of another defendant charged in this case.
Leung Kin-man, 36, unemployed; and Chan Lap-keung, 49, partner of Cavendish System Incorporated Limited (Cavendish); were respectively jailed for 27 months and two years. Yu Yan-tim, 49, insurance agent, and Lai Fu-kuen, 35, partner of Maxcorp Pacific Co rporation (Maxcorp), were each jailed for 18 months.
The defendants were convicted on one count of conspiring with Tang Wing-kit, Loo Hung-fat, Lau Yuk-wing and others to defraud various lending institutions between October and November last year by :
- falsely representing that a number of non-eigible borrowers were duly employed by either Cavendish or Maxcorp;
- submitting false employment letters and salary cheques purportedly issued by Cavendish or Maxcorp; and
- providing false information to the lending institutions as to the identity of the referees.
Loo hung-fat, who claimed to be a trade representative of the Republic of Comoros, and Lau Yuk-wing, agency manager, earlier pleaded guilty to a total of three charges of furnishing false information. They were today each sentenced to six months’ imprisonment.
Tang, unemployed, was also found guilty and would be sentenced on December 8, 2000.
The case arose from corruption complaints alleging that employees of some finance companies had accepted bribes in return for approving loan applications supported with false documents.
The court heard that Leung Kin-man and Yu Yan-tim, who were at the centre of the loan scam syndicate, charged each applicant 10% to 40% of the loans obtained as a handling fee.
Between October and November last year, a total of $90,000 in loans were issued to various unqualified applicants by four finance companies, based on false employment documents and bogus referees provided by the syndicate.
The prosecution was today represented by Richard Donald on a fiat, assisted by ICAC officer Robert Pang.