Trio jailed for bank reference fraud
2001-1-31
Three men, including a former branch manager of the Bank of China (BOC), were sentenced to jail terms ranging from 15 months to 21 months at District Court today (Wednesday) for their involvement in a bank reference fraud.
The defendants had plotted to cause the BOC to issue an inaccurate reference letter, certifying that an investment company's bank account had an eight-digit balance.
Pun Wai-hei, 42, director and shareholder of C K Economic Development Limited (CKEDL), and Pau Cheong-fu, 49, former manager of the BOC's Queen's Road East Sub-Branch, were each jailed for 21 months, while Luo Wei-wen, 44, former manager of CKEDL, receive d a jail sentence of 15 months.
CKEDL deals in real estate investments on the Mainland.
The defendants were today found guilty of one count of conspiracy to defraud and an alternative charge of conspiracy to use a document with intent to deceive his principal.
In sentencing, Judge Maggie Poon said the offences committed by the defendants were serious and warranted immediate jail sentences.
The judge added that the defendants' dishonesty had brought adverse impact on Mainland and overseas investors, who relied on the contents of the false bank reference submitted to the Guangzhou Industrial and Commercial Administration Bureau.
The court heard that a cheque for $12,500,000, drawn from CKEDL's account with the Nanyang Commercial Bank Limited (Nanyang Commercial Bank), was deposited into CKEDL's account with the BOC on August 13, 1998.
Pun asked Luo to apply for a bank reference from the BOC with a low eight-digit figure, knowing that there were insufficient funds in CKEDL's account with the BOC.
On the same day, Pau instructed a senior clerk of the BOC to prepare a bank reference for CKEDL.
The clerk found that the available balance of CKEDL was about $300,000, with an amount of $12,500,000 floating, which meant that the cheque had not yet been cleared.
On the following day, the clerk received a telephone call from Luo, who asked her to include the sum of $12,500,000 in the bank reference. Pau instructed the clerk to comply with Luo's request.
The bank reference in question, which remarked that the current balance of the CKEDL's account was of low-eight digit figures as at August 13, 1998, was issued on that day.
Subsequently, the cheque for $12,500,000 was dishonoured by the Nanyang Commercial Bank.
The case originated from a complaint, alleging that a company director might have offered advantages to a branch manager of a bank as a reward for issuing a bank reference letter. ICAC enquiries revealed the offence.
The prosecution was today represented by Senior Government Counsel Liu Yuen-ming, assisted by ICAC officer Herbert Lee.
The defendants had plotted to cause the BOC to issue an inaccurate reference letter, certifying that an investment company's bank account had an eight-digit balance.
Pun Wai-hei, 42, director and shareholder of C K Economic Development Limited (CKEDL), and Pau Cheong-fu, 49, former manager of the BOC's Queen's Road East Sub-Branch, were each jailed for 21 months, while Luo Wei-wen, 44, former manager of CKEDL, receive d a jail sentence of 15 months.
CKEDL deals in real estate investments on the Mainland.
The defendants were today found guilty of one count of conspiracy to defraud and an alternative charge of conspiracy to use a document with intent to deceive his principal.
In sentencing, Judge Maggie Poon said the offences committed by the defendants were serious and warranted immediate jail sentences.
The judge added that the defendants' dishonesty had brought adverse impact on Mainland and overseas investors, who relied on the contents of the false bank reference submitted to the Guangzhou Industrial and Commercial Administration Bureau.
The court heard that a cheque for $12,500,000, drawn from CKEDL's account with the Nanyang Commercial Bank Limited (Nanyang Commercial Bank), was deposited into CKEDL's account with the BOC on August 13, 1998.
Pun asked Luo to apply for a bank reference from the BOC with a low eight-digit figure, knowing that there were insufficient funds in CKEDL's account with the BOC.
On the same day, Pau instructed a senior clerk of the BOC to prepare a bank reference for CKEDL.
The clerk found that the available balance of CKEDL was about $300,000, with an amount of $12,500,000 floating, which meant that the cheque had not yet been cleared.
On the following day, the clerk received a telephone call from Luo, who asked her to include the sum of $12,500,000 in the bank reference. Pau instructed the clerk to comply with Luo's request.
The bank reference in question, which remarked that the current balance of the CKEDL's account was of low-eight digit figures as at August 13, 1998, was issued on that day.
Subsequently, the cheque for $12,500,000 was dishonoured by the Nanyang Commercial Bank.
The case originated from a complaint, alleging that a company director might have offered advantages to a branch manager of a bank as a reward for issuing a bank reference letter. ICAC enquiries revealed the offence.
The prosecution was today represented by Senior Government Counsel Liu Yuen-ming, assisted by ICAC officer Herbert Lee.