One year's jail for company proprietor convicted of $21m L/C fraud
2001-5-3
A company proprietor was sentenced to one year's imprisonment at District Court today (Thursday) for defrauding three local banks of over $21 million in Letters of Credit (L/C) facilities based on bogus commercial transactions.
Lok Wai-keung, 41, shareholder of Greatmate Limited (Greatmate) and sole proprietor of Victoria Electric Company (Victoria Electric), earlier pleaded guilty to six counts of conspiracy to defraud.
Judge Peter Line said immediate custodial sentence was imposed in view of the serious offences committed by the defendant.
The judge added that he had considered Lok's guilty plea and the fact that he had fully repaid the loans.
The case originated from a corruption complaint involving the defendant in relation to a small house development project in Tai Po. Subsequent ICAC enquiries revealed the L/C fraud. The original corruption allegation was not substantiated.
The court heard that Lok had conspired with Tsang Kin-chung to defraud the Bank of Communications, the Overseas Trust Bank Limited, and Yien Yieh Commercial Bank Limited between December 22, 1995 and August 26, 1998.
Tsang was the director of Guang Bao International Development Company Limited (Guang Bao), and one of the shareholders and directors of Crown Well (H.K.) Limited (Crown Well).
Lok and Tsang had used false documents to apply for a total of six L/Cs from the banks.
The bogus documents purportedly showed that there were business transactions relating to the sale of audio and video equipment, and cobalt among Guang Bao, Victoria Electric, Crown Well, and Greatmate.
The banks subsequently released L/C facilities totalling more than $21 million to Victoria Electric and Crown Well.
Tsang failed to report ICAC bail in December last year, and a warrant for his arrest had been issued.
The prosecution was today represented by Thomas Iu on a fiat, assisted by ICAC officer Matilda Wong.
Lok Wai-keung, 41, shareholder of Greatmate Limited (Greatmate) and sole proprietor of Victoria Electric Company (Victoria Electric), earlier pleaded guilty to six counts of conspiracy to defraud.
Judge Peter Line said immediate custodial sentence was imposed in view of the serious offences committed by the defendant.
The judge added that he had considered Lok's guilty plea and the fact that he had fully repaid the loans.
The case originated from a corruption complaint involving the defendant in relation to a small house development project in Tai Po. Subsequent ICAC enquiries revealed the L/C fraud. The original corruption allegation was not substantiated.
The court heard that Lok had conspired with Tsang Kin-chung to defraud the Bank of Communications, the Overseas Trust Bank Limited, and Yien Yieh Commercial Bank Limited between December 22, 1995 and August 26, 1998.
Tsang was the director of Guang Bao International Development Company Limited (Guang Bao), and one of the shareholders and directors of Crown Well (H.K.) Limited (Crown Well).
Lok and Tsang had used false documents to apply for a total of six L/Cs from the banks.
The bogus documents purportedly showed that there were business transactions relating to the sale of audio and video equipment, and cobalt among Guang Bao, Victoria Electric, Crown Well, and Greatmate.
The banks subsequently released L/C facilities totalling more than $21 million to Victoria Electric and Crown Well.
Tsang failed to report ICAC bail in December last year, and a warrant for his arrest had been issued.
The prosecution was today represented by Thomas Iu on a fiat, assisted by ICAC officer Matilda Wong.