A former bank manager, charged by the ICAC with allegedly accepting a $500,000 loan from a trading company's director for increasing the company's credit facilities, was found guilty by Judge Colin Mackintosh at the District Court today (Monday).

Sentencing was adjourned until tomorrow morning, and the defendant was remanded in the custody of the Correctional Services Department.

Wan Charn-leung, 37, former business manager of the Bank of East Asia Limited (BEA), was found guilty on one count of accepting a $500,000 loan as a reward for showing favour to Gain Source Industrial Limited (Gain Source) in relation to the granting and/ or review of credit facilities to Gain Source on June 3, 1999.

The court heard that Gain Source was a customer of BEA and had maintained credit facilities at the bank.

The defendant had, on a number of occasions, demanded loans from Lam Hing-bong, a director of Gain Source, but was refused.

In May 1999, the defendant asked for a loan of $500,000 and undertook to increase Gain Source's credit facilities in return.

Lam agreed, and gave the defendant a cheque for $500,000 in June 1999. The defendant then gave Lam a post-dated cheque in the same amount as a pledge for repayment.

The defendant later recommended to increase Gain Source's credit facilities from $11 million to $14 million. His recommendation was approved by the bank.

The court also heard that in August 1999, the $500,000 cheque from the defendant was bounced when Lam wanted to cash it with a bank.

The defendant later deposited two other cheques, totalling $500,000, into Lam's bank account to repay the loan.

But ICAC inquiries revealed that these cheques were issued by a company, which was also a customer of BEA, on the defendant's behalf.

The prosecution was today represented by Henry Ma on a fiat, assisted by ICAC officer Winky Hsu.