Ex-practising solicitor gets 5 years for fraud over small house development project
2004-3-1
A former practising solicitor was today (Monday) sentenced to five years' imprisonment at District Court for his role in a fraudulent scam to defraud an investment company of $5 million in relation to a small house development project in the New Territori es.
Peter Chan, 56, was earlier found guilty of one count of conspiracy to defraud.
In sentencing, Deputy Judge David Dufton said a deterrent sentence must be imposed on the defendant for the serious breach of trust.
The case arose from a corruption complaint. Subsequent ICAC inquiries revealed the fraud offence.
The court heard that Mart Treasure Investment Limited (Mart Treasure) was an investment company involved in the development of small houses in Tsam Chuk Wan, Sai Kung. Chan was appointed as the legal adviser of Mart Treasure.
In May 1997, Chan, through a middleman, found Paron Investment Limited (Paron), which agreed to purchase the project at $13.2 million.
At a meeting held between shareholders and directors of Mart Treasure, Chan and Dai Shu-sing, one of Mart Treasure's shareholders, falsely represented that Paron had offered to purchase the project at $8.2 million, and persuaded other shareholders to sell the project at that price.
In September 1997, Chan prepared a provisional sales and purchase agreement at $13.2 million, which was signed by Dai on behalf of Mart Treasure.
On behalf of Mart Treasure, Chan received from Paron two instalments of $3.5 million and $4.9 million respectively for the project.
Chan subsequently transferred $4.3 million to Mart Treasure as partial payment of the sale.
The court heard that Chan pocketed $1.14 million out of the remaining sum of $4.1 million.
The prosecution was today represented by Government Counsel Ned Lai, assisted by ICAC officer Benny Wong.
Peter Chan, 56, was earlier found guilty of one count of conspiracy to defraud.
In sentencing, Deputy Judge David Dufton said a deterrent sentence must be imposed on the defendant for the serious breach of trust.
The case arose from a corruption complaint. Subsequent ICAC inquiries revealed the fraud offence.
The court heard that Mart Treasure Investment Limited (Mart Treasure) was an investment company involved in the development of small houses in Tsam Chuk Wan, Sai Kung. Chan was appointed as the legal adviser of Mart Treasure.
In May 1997, Chan, through a middleman, found Paron Investment Limited (Paron), which agreed to purchase the project at $13.2 million.
At a meeting held between shareholders and directors of Mart Treasure, Chan and Dai Shu-sing, one of Mart Treasure's shareholders, falsely represented that Paron had offered to purchase the project at $8.2 million, and persuaded other shareholders to sell the project at that price.
In September 1997, Chan prepared a provisional sales and purchase agreement at $13.2 million, which was signed by Dai on behalf of Mart Treasure.
On behalf of Mart Treasure, Chan received from Paron two instalments of $3.5 million and $4.9 million respectively for the project.
Chan subsequently transferred $4.3 million to Mart Treasure as partial payment of the sale.
The court heard that Chan pocketed $1.14 million out of the remaining sum of $4.1 million.
The prosecution was today represented by Government Counsel Ned Lai, assisted by ICAC officer Benny Wong.