Eight charged following ICAC-Police joint probe into graft facilitated money laundering
2002-9-9
Eight people, including a former senior bank manager earlier arrested in an ICAC operation for their alleged involvement in a HK$50 billion cross-boundary money laundering case, were charged today (Monday), following a joint investigation by a special task force of the ICAC and the Police.
The prosecutions arose from a corruption complaint received by the ICAC, alleging that a senior bank manager might have accepted bribes to facilitate money laundering activities.
Following an ICAC operation in September 2001 which netted a total of 39 persons, a task force comprising ICAC investigators and officers of the Police's Commercial Crime Bureau was set up to inquire into the various aspects of the case, including corrupt ion, money laundering and deception.
Six of the defendants, Lam Yiu-chung, 47, former senior manager of Po Sang Bank; Chan Chung-ming, 41 and Yip Heuong-wing Judas, 52, both shareholders and directors of Guardecade Limited (Guardecade); Wong Sung-tak, 30 and Wong Sung-kai, 36, respectively s hareholder and clerk of Guardecade; and Chiu Kam-lung, 26, driver, were charged with a total of six alleged corruption and money laundering offences.
The defendants jointly face an alleged offence under the Organised and Serious Crimes Ordinance (OSCO).
The charge alleged them of conspiring with Wong Sao-nin, Lim Sui-mee, Cheung Leung-lung, Lam Lei-loy, Leung Kwok-lai and others to deal with sums of cash, knowing that the money in whole or in part, directly or indirectly represented proceeds of indictabl e offences, between April 1, 1996 and September 11, 2001.
Lam was further charged with two counts of accepting loans totalling US$20,000 from Chan on separate occasions in 1997 and 2001 for showing favour to Guardecade in business dealings between the bank and Guardecade, under the Prevention of Bribery Ordinanc e (PBO).
Chan alone faced two counts of offering bribes to Lam for a similar reason.
Lam, Chan and Yip were also jointly charged with one count of conspiring with senior officer of Po Sang Bank, Leung Kwok-lai, to use deposit slips containing false statements, with intent to deceive the bank between September 1, 1997 and September 11, 200 1.
It was alleged that such deposit slips purportedly showed that deposits made to the bank account of Guardecade were transfer deposits.
Chiu was further charged with one count of possessing a stun gun without a licence on September 11, 2001. The alleged offence was uncovered in the course of the ICAC operation.
Meanwhile, businessman Yiu Chik-chuen, 58, and his wife Chung Hau-kam, 50, were charged with a total of five alleged deception and money laundering offences.
The couple jointly face two counts of procuring, and one of attempting to procure the making of an entry in a bank record, respectively in the sum of HK$1,922,223.62, HK$1,749,446.25 and US$1,315,460, by deception in 1998 and 1999.
They were said to have falsely represented that there were genuine commercial transactions between the couple’s companies and some Mainland companies.
Yiu was further charged with two counts of dealing with proceeds of crimes in 1999.
All eight defendants will appear at Eastern Magistracy on Wednesday (September 11) at 9:30 am .
Apart from the eight defendants, 35 persons had been prosecuted for illegal remittance offences under Sections 24B and 24C of OSCO.
They were given suspended jail sentences or fined by the court. The total fine amounted to HK$420,000.
Spokesmen from the ICAC and the Police said that the investigation exhibited the good co-operation between the Commission and the Force, and showed their determination in combatting corruption, business fraud and money laundering activities.
The spokesmen also warned that corruption, business fraud and money laundering are very serious offences.
"Employees of banks and money changers who help deal with proceeds of crimes for bribes are liable for prosecution under PBO and OSCO," the spokesmen said.
They also reminded those who handle remittances as a business should register with the Police's Narcotics Bureau and keep proper record of transactions, or they will breach Sections 24B and 24C of OSCO.
Inquiries into suspected money laundering activities by the ICAC-Police task force are continuing.
The prosecutions arose from a corruption complaint received by the ICAC, alleging that a senior bank manager might have accepted bribes to facilitate money laundering activities.
Following an ICAC operation in September 2001 which netted a total of 39 persons, a task force comprising ICAC investigators and officers of the Police's Commercial Crime Bureau was set up to inquire into the various aspects of the case, including corrupt ion, money laundering and deception.
Six of the defendants, Lam Yiu-chung, 47, former senior manager of Po Sang Bank; Chan Chung-ming, 41 and Yip Heuong-wing Judas, 52, both shareholders and directors of Guardecade Limited (Guardecade); Wong Sung-tak, 30 and Wong Sung-kai, 36, respectively s hareholder and clerk of Guardecade; and Chiu Kam-lung, 26, driver, were charged with a total of six alleged corruption and money laundering offences.
The defendants jointly face an alleged offence under the Organised and Serious Crimes Ordinance (OSCO).
The charge alleged them of conspiring with Wong Sao-nin, Lim Sui-mee, Cheung Leung-lung, Lam Lei-loy, Leung Kwok-lai and others to deal with sums of cash, knowing that the money in whole or in part, directly or indirectly represented proceeds of indictabl e offences, between April 1, 1996 and September 11, 2001.
Lam was further charged with two counts of accepting loans totalling US$20,000 from Chan on separate occasions in 1997 and 2001 for showing favour to Guardecade in business dealings between the bank and Guardecade, under the Prevention of Bribery Ordinanc e (PBO).
Chan alone faced two counts of offering bribes to Lam for a similar reason.
Lam, Chan and Yip were also jointly charged with one count of conspiring with senior officer of Po Sang Bank, Leung Kwok-lai, to use deposit slips containing false statements, with intent to deceive the bank between September 1, 1997 and September 11, 200 1.
It was alleged that such deposit slips purportedly showed that deposits made to the bank account of Guardecade were transfer deposits.
Chiu was further charged with one count of possessing a stun gun without a licence on September 11, 2001. The alleged offence was uncovered in the course of the ICAC operation.
Meanwhile, businessman Yiu Chik-chuen, 58, and his wife Chung Hau-kam, 50, were charged with a total of five alleged deception and money laundering offences.
The couple jointly face two counts of procuring, and one of attempting to procure the making of an entry in a bank record, respectively in the sum of HK$1,922,223.62, HK$1,749,446.25 and US$1,315,460, by deception in 1998 and 1999.
They were said to have falsely represented that there were genuine commercial transactions between the couple’s companies and some Mainland companies.
Yiu was further charged with two counts of dealing with proceeds of crimes in 1999.
All eight defendants will appear at Eastern Magistracy on Wednesday (September 11) at 9:30 am .
Apart from the eight defendants, 35 persons had been prosecuted for illegal remittance offences under Sections 24B and 24C of OSCO.
They were given suspended jail sentences or fined by the court. The total fine amounted to HK$420,000.
Spokesmen from the ICAC and the Police said that the investigation exhibited the good co-operation between the Commission and the Force, and showed their determination in combatting corruption, business fraud and money laundering activities.
The spokesmen also warned that corruption, business fraud and money laundering are very serious offences.
"Employees of banks and money changers who help deal with proceeds of crimes for bribes are liable for prosecution under PBO and OSCO," the spokesmen said.
They also reminded those who handle remittances as a business should register with the Police's Narcotics Bureau and keep proper record of transactions, or they will breach Sections 24B and 24C of OSCO.
Inquiries into suspected money laundering activities by the ICAC-Police task force are continuing.