Ex-education fund members found guilty of $2 million embezzlement and perverting justice
2002-3-13
Five former members of an education fund were today (Wednesday) convicted at District Court of stealing over $2 million from the fund and misleading the ICAC during its investigation into a suspected corruption case involving the theft.
The five defendants were former members of a committee controlling the Cheng's Educational Fund Limited (CEFL). They were former treasurer Cheng Kin-ping, 56, and his wife Malinda Lam Wah-lam, 49; former chairman Cheng Wing-chun, 69; former members Cheng Hak-hee, 77, and Cheng Ho-ming, 67.
Cheng Kin-ping was today found guilty of four counts of theft, while Cheng Wing-chun and Lam Wah-lam was each convicted of one count of theft.
Cheng Wing-chun, Lam Wah-lam, Cheng Hak-hee and Cheng Ho-ming were each found guilty of one count of doing an act tended to pervert the course of public justice.
Also charged in connection with the case were CEFL's former secretary Cheng Sum, 82; former members Cheng Wing-chun, 48, and William Cheng Hung-kan, 48. Each pleaded guilty earlier to one similar perversion offence.
Deputy Judge Tallentire adjourned the case until April 10, 2002 for sentence.
Cheng Kin-ping and his wife Lam Wah-lam were remanded into the custody of the Correctional Services Department, while the other six defendants were granted cash bail ranging from $3,000 to $30,000.
The case originated from a corruption complaint, alleging that the treasurer of the fund had offered bribes to its chairman to connive at the theft of funds. ICAC enquiries revealed the perversion and theft offences.
CEFL was established by Cheng's Clansman General Association Limited to receive donations from its members to sponsor the equipment and furniture cost of a primary school allotted to CEFL by the Education Department.
In July 1998, the Association raised $2.47 million from its members and deposited the money into an account of CEFL with Liu Chong Hing Bank Limited.
The court heard that treasurer Cheng Kin-ping and his wife Lam Wah-lam had stolen $2.2 million from CEFL by transferring the money to Lam's account with another bank, and later to the bank account of a company owned by them.
On another occasion, Cheng Kin-ping and chairman Cheng Wing-chun had stolen $60,000 from CEFL. Cheng Kin-ping alone had also stolen $50,000 and $40,000 from CEFL on two other separate occasions.
The court also heard that except Cheng Kin-ping, the seven other defendants, with intent to pervert the course of public justice, had informed the ICAC by a letter dated December 15, 1999, falsely representing that the sum of $2.2 million was entrusted to Cheng Kin-ping with the consent of CEFL.
The letter said during a meeting held on March 26, 1998, CEFL members had agreed that Cheng Kin-ping was entrusted to manage $2.2 million of CEFL when there was no such agreement reached at such meeting.
The offences took place between April 1998 and December 1999.
The prosecution was today represented by Josiah Lee on a fiat, assisted by ICAC officer Edward Cheng.
The five defendants were former members of a committee controlling the Cheng's Educational Fund Limited (CEFL). They were former treasurer Cheng Kin-ping, 56, and his wife Malinda Lam Wah-lam, 49; former chairman Cheng Wing-chun, 69; former members Cheng Hak-hee, 77, and Cheng Ho-ming, 67.
Cheng Kin-ping was today found guilty of four counts of theft, while Cheng Wing-chun and Lam Wah-lam was each convicted of one count of theft.
Cheng Wing-chun, Lam Wah-lam, Cheng Hak-hee and Cheng Ho-ming were each found guilty of one count of doing an act tended to pervert the course of public justice.
Also charged in connection with the case were CEFL's former secretary Cheng Sum, 82; former members Cheng Wing-chun, 48, and William Cheng Hung-kan, 48. Each pleaded guilty earlier to one similar perversion offence.
Deputy Judge Tallentire adjourned the case until April 10, 2002 for sentence.
Cheng Kin-ping and his wife Lam Wah-lam were remanded into the custody of the Correctional Services Department, while the other six defendants were granted cash bail ranging from $3,000 to $30,000.
The case originated from a corruption complaint, alleging that the treasurer of the fund had offered bribes to its chairman to connive at the theft of funds. ICAC enquiries revealed the perversion and theft offences.
CEFL was established by Cheng's Clansman General Association Limited to receive donations from its members to sponsor the equipment and furniture cost of a primary school allotted to CEFL by the Education Department.
In July 1998, the Association raised $2.47 million from its members and deposited the money into an account of CEFL with Liu Chong Hing Bank Limited.
The court heard that treasurer Cheng Kin-ping and his wife Lam Wah-lam had stolen $2.2 million from CEFL by transferring the money to Lam's account with another bank, and later to the bank account of a company owned by them.
On another occasion, Cheng Kin-ping and chairman Cheng Wing-chun had stolen $60,000 from CEFL. Cheng Kin-ping alone had also stolen $50,000 and $40,000 from CEFL on two other separate occasions.
The court also heard that except Cheng Kin-ping, the seven other defendants, with intent to pervert the course of public justice, had informed the ICAC by a letter dated December 15, 1999, falsely representing that the sum of $2.2 million was entrusted to Cheng Kin-ping with the consent of CEFL.
The letter said during a meeting held on March 26, 1998, CEFL members had agreed that Cheng Kin-ping was entrusted to manage $2.2 million of CEFL when there was no such agreement reached at such meeting.
The offences took place between April 1998 and December 1999.
The prosecution was today represented by Josiah Lee on a fiat, assisted by ICAC officer Edward Cheng.