Ex-education group shareholder sentenced for deceiving $53m bank loans
2003-10-31
A former shareholder of a privately run education group was today (Friday) sentenced to two years' imprisonment, suspended for two years, at District Court for deceiving bank loans totalling $53 million with a fraudulent business plan.
Chow Kut-fu, 46, former shareholder of Quality Education Group Limited (QEG), was earlier found guilty of four counts of procuring the making of an entry in a bank record by deception.
In sentencing, Deputy Judge Ian Candy said a suspended sentence was imposed taking into account the defendant's good character and the fact that he had repaid all the loans.
The judge also commended the ICAC's case officers for their professional and meticulous presentation of evidence during the trial.
The case arose from a corruption complaint. Subsequent ICAC inquiries uncovered the deception offences.
The court heard that in 1999, Chow set up an internet website to promote distant learning courses offered by the United Institute of International Education and other companies.
The defendant approached a consulting firm for a business plan for QEG to obtain financing for the new venture.
In the business plan, Chow falsely represented that Central Light Investment Limited (Central Light) had received from Western Africa Enterprises Limited (Western Africa) and Harry G Henneman "development fees" and "commissions" for operating distant lear ning courses with a number of overseas universities.
Such "development fees" and "commissions" were said to have been paid to Western Africa and Henneman by overseas universities concerned.
Chow then submitted the business plan to Standard Chartered Asia Development Capital Limited (SCADCL) for financing.
ICAC investigations revealed that Central Light was a British Virgin Islands-registered subsidiary of QEG, while Western Africa was a garment company controlled by a relative of Chow.
Between June 1 and 7, 2000, SCADCL was deceived into paying a total of $53.2 million to the bank accounts of QEG or Chow, the court was told.
The prosecution was today represented by Joseph Pethes on a fiat, assisted by ICAC officer Sarah Lau.
Chow Kut-fu, 46, former shareholder of Quality Education Group Limited (QEG), was earlier found guilty of four counts of procuring the making of an entry in a bank record by deception.
In sentencing, Deputy Judge Ian Candy said a suspended sentence was imposed taking into account the defendant's good character and the fact that he had repaid all the loans.
The judge also commended the ICAC's case officers for their professional and meticulous presentation of evidence during the trial.
The case arose from a corruption complaint. Subsequent ICAC inquiries uncovered the deception offences.
The court heard that in 1999, Chow set up an internet website to promote distant learning courses offered by the United Institute of International Education and other companies.
The defendant approached a consulting firm for a business plan for QEG to obtain financing for the new venture.
In the business plan, Chow falsely represented that Central Light Investment Limited (Central Light) had received from Western Africa Enterprises Limited (Western Africa) and Harry G Henneman "development fees" and "commissions" for operating distant lear ning courses with a number of overseas universities.
Such "development fees" and "commissions" were said to have been paid to Western Africa and Henneman by overseas universities concerned.
Chow then submitted the business plan to Standard Chartered Asia Development Capital Limited (SCADCL) for financing.
ICAC investigations revealed that Central Light was a British Virgin Islands-registered subsidiary of QEG, while Western Africa was a garment company controlled by a relative of Chow.
Between June 1 and 7, 2000, SCADCL was deceived into paying a total of $53.2 million to the bank accounts of QEG or Chow, the court was told.
The prosecution was today represented by Joseph Pethes on a fiat, assisted by ICAC officer Sarah Lau.