Duo guilty of $65.5m credit fraud over false claim of property pledge
2002-11-6
A woman and her brother, charged by the ICAC in connection with a fraudulent scheme to obtain bank credit facilities totalling $65.5 million, were today (Wednesday) found guilty by a jury of the Court of First Instance.
The court heard that the defendants had deceived the board of directors of International Wisdom & Mercy VDA S.A. (IWM) by pledging an IWM property to a bank in order to obtain the credit facilities, and made false representation to the bank that the compa ny had consented to the pledge.
Wong Hiu-shui, 43, shareholder of IWM, and her businessman brother Wong Fai-tung, 32, were found guilty on one count of forgery, one of using false instruments, and two counts of procuring the execution of a valuable security by deception.
Deputy Judge Anthony To adjourned sentencing until November 20, 2002, pending Wong Hiu-shui's background and psychiatric reports. The defendants were remanded in the custody of the Correctional Services Department.
The case arose from a corruption complaint. ICAC enquiries revealed the fraud.
The defendants were convicted of making and using false documents of IWM, consisting of minutes of meetings of the board of directors, written resolutions of the shareholders as well as declarations of the directors and shareholders, in relation to a firs t and second mortgage on a property in Kent Road, Kowloon Tong.
Two other charges stated that the defendants had procured from Sin Hua Bank the execution of a valuable security, namely two mortgages dated March 1, 1999 between the bank as mortgagee and IWM as mortgagor, with Tacglory Limited (Tacglory) and P&T Motors (China) Limited (P&T) as borrowers by deception.
Tacglory and P&T were companies controlled by the defendants.
The offences took place between February and March 1999.
The court heard that the outstanding loans which Tacglory and P&T had failed to repay amounted to $93 million.
The prosecution was today represented by Peter Callaghan, assisted by ICAC officer Choi Shu-keung.
The court heard that the defendants had deceived the board of directors of International Wisdom & Mercy VDA S.A. (IWM) by pledging an IWM property to a bank in order to obtain the credit facilities, and made false representation to the bank that the compa ny had consented to the pledge.
Wong Hiu-shui, 43, shareholder of IWM, and her businessman brother Wong Fai-tung, 32, were found guilty on one count of forgery, one of using false instruments, and two counts of procuring the execution of a valuable security by deception.
Deputy Judge Anthony To adjourned sentencing until November 20, 2002, pending Wong Hiu-shui's background and psychiatric reports. The defendants were remanded in the custody of the Correctional Services Department.
The case arose from a corruption complaint. ICAC enquiries revealed the fraud.
The defendants were convicted of making and using false documents of IWM, consisting of minutes of meetings of the board of directors, written resolutions of the shareholders as well as declarations of the directors and shareholders, in relation to a firs t and second mortgage on a property in Kent Road, Kowloon Tong.
Two other charges stated that the defendants had procured from Sin Hua Bank the execution of a valuable security, namely two mortgages dated March 1, 1999 between the bank as mortgagee and IWM as mortgagor, with Tacglory Limited (Tacglory) and P&T Motors (China) Limited (P&T) as borrowers by deception.
Tacglory and P&T were companies controlled by the defendants.
The offences took place between February and March 1999.
The court heard that the outstanding loans which Tacglory and P&T had failed to repay amounted to $93 million.
The prosecution was today represented by Peter Callaghan, assisted by ICAC officer Choi Shu-keung.