Accountancy firm's ex-employee jailed for accepting illegal rebates
2001-11-16
A former employee of an accountancy firm was today (Friday) sent to jail for one year for accepting $76,000 in illegal rebates from an electric bulb supplier and deceiving $35,000 from the accountancy firm.
The court heard that Cheung Chun-ming, 41, former mail room supervisor of Arthur Andersen & Co. (Arthur Andersen), had solicited 50 per cent of the value of the orders as kickbacks.
Cheung today pleaded guilty at District Court to 14 counts of accepting an advantage from the supplier and three of using a document with intent to deceive his principal. He was also ordered to pay $50,000 in restitution.
In sentencing Cheung, Judge Line referred to a Court of Appeal sentencing guideline that bribery offences in the private sector warranted immediate custodial sentences.
The supplier, Li Tack, 73, proprietor of Tick Ming Electrical Co. (Tick Ming), today pleaded guilty to 12 counts of offering illegal rebates totalling $62,018 to Cheung.
Li was granted bail of $5,000 in cash, pending sentencing on December 7.
The court heard that Cheung was responsible for purchasing office sundries from suppliers while employed by Arthur Andersen.
Tick Ming supplied light bulbs and fluorescent lamps to Arthur Andersen.
Between March and October last year, Cheung had, on 14 occasions, solicited 50 per cent of the invoice price from Li as rebates for placing orders with Tick Ming.
As a result, Cheung had accepted illegal rebates totalling $76,771 from Li.
During the same period, Cheung had, on three occasions, used bogus invoices from Tick Ming, purporting to show that Tick Ming had supplied light bulbs to Arthur Andersen.
Based on the invoices, the Accounting Department of Arthur Andersen issued cheques payable to Tick Ming.
After depositing the cheques into his company's bank account, Li paid back Cheung $10,000 on each occasion, and kept the balances for himself. Cheung had deceived Arthur Andersen of $35,248 in total.
The senior management of Arthur Andersen confirmed that Cheung was not permitted to accept rebates from suppliers.
The prosecution was today represented by Senior Government Counsel Frederick Chung, assisted by ICAC officer Daniel Cheung.
The court heard that Cheung Chun-ming, 41, former mail room supervisor of Arthur Andersen & Co. (Arthur Andersen), had solicited 50 per cent of the value of the orders as kickbacks.
Cheung today pleaded guilty at District Court to 14 counts of accepting an advantage from the supplier and three of using a document with intent to deceive his principal. He was also ordered to pay $50,000 in restitution.
In sentencing Cheung, Judge Line referred to a Court of Appeal sentencing guideline that bribery offences in the private sector warranted immediate custodial sentences.
The supplier, Li Tack, 73, proprietor of Tick Ming Electrical Co. (Tick Ming), today pleaded guilty to 12 counts of offering illegal rebates totalling $62,018 to Cheung.
Li was granted bail of $5,000 in cash, pending sentencing on December 7.
The court heard that Cheung was responsible for purchasing office sundries from suppliers while employed by Arthur Andersen.
Tick Ming supplied light bulbs and fluorescent lamps to Arthur Andersen.
Between March and October last year, Cheung had, on 14 occasions, solicited 50 per cent of the invoice price from Li as rebates for placing orders with Tick Ming.
As a result, Cheung had accepted illegal rebates totalling $76,771 from Li.
During the same period, Cheung had, on three occasions, used bogus invoices from Tick Ming, purporting to show that Tick Ming had supplied light bulbs to Arthur Andersen.
Based on the invoices, the Accounting Department of Arthur Andersen issued cheques payable to Tick Ming.
After depositing the cheques into his company's bank account, Li paid back Cheung $10,000 on each occasion, and kept the balances for himself. Cheung had deceived Arthur Andersen of $35,248 in total.
The senior management of Arthur Andersen confirmed that Cheung was not permitted to accept rebates from suppliers.
The prosecution was today represented by Senior Government Counsel Frederick Chung, assisted by ICAC officer Daniel Cheung.