Nine months' jail for former bank manager accepting $500,000 loan for credit upgrade
2002-4-30
A former bank manager was today (Tuesday) sentenced to nine months' imprisonment at the District Court for accepting a $500,000 loan from a trading company's director for increasing the company's credit facilities.
Wan Charn-leung, 37, former business manager of the Bank of East Asia Limited (BEA), was yesterday 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 gra nting and/or review of credit facilities to Gain Source.
Judge Colin MacKintosh said a custodial sentence was imposed on the defendant to serve as a deterrence, since the bribery offence constituted a breach of trust and encroached upon the commercial society.
The judge also said as an employee in a financial institution, the defendant should expect himself to have a high degree of integrity.
The judge added that in sentencing, he had taken into account the defendant's clear records and that no loss was incurred to the bank.
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 Choi Shu-keung.
Wan Charn-leung, 37, former business manager of the Bank of East Asia Limited (BEA), was yesterday 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 gra nting and/or review of credit facilities to Gain Source.
Judge Colin MacKintosh said a custodial sentence was imposed on the defendant to serve as a deterrence, since the bribery offence constituted a breach of trust and encroached upon the commercial society.
The judge also said as an employee in a financial institution, the defendant should expect himself to have a high degree of integrity.
The judge added that in sentencing, he had taken into account the defendant's clear records and that no loss was incurred to the bank.
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 Choi Shu-keung.