Ex-Keen Lloyd chairman and four others guilty of $222m L/C fraud
2004-3-24
Five persons, including the former chairman of Keen Lloyd Group (KLG), charged by the ICAC for their roles in a US$28.78 million (about HK$222 million) Letters of Credit (L/Cs) fraud, were today (Wednesday) convicted by a jury of the Court of First Instan ce.
Chin Kam-chiu, alias Chun Kam-chiu, 46, former chairman of KLG; Tsang Siu-lan, 34, former manager of KLG; Chow Wai-choi, 44, former deputy general manager of then Sin Hua Bank Limited (Sin Hua Bank); Hau Pui-yee, alias Hau Pui-ming, 53, former assistant g eneral manager of Sin Hua Bank, and Ma Kin-fai, 45, former senior branch manager of Sin Hua Bank, were found guilty of one count of conspiracy to defraud.
Mr Justice Pang Kin-kee adjourned the case until April 8, 2004 for sentence, and remanded the defendants in the custody of the Correctional Services Department.
The case arose from a complaint, alleging that Chun might have corruptly secured credit facilities from a bank. ICAC inquiries uncovered the conspiracy offence.
The charge stated that between November 1, 1998 and April 30, 1999, the defendants had conspired together and with other persons to defraud Sin Hua Bank, its shareholders and creditors by dishonestly:
- causing and permitting applications to be made to Sin Hua Bank by Keen Lloyd (Holdings) Limited and Keen Lloyd Motors Limited for the issue of L/Cs to finance the purported purchase of goods from a number of companies;
- causing and permitting the falsification of documentation required for the negotiation of the L/Cs; and
- causing and permitting payments to be made to the beneficiary companies pursuant to the negotiation of the L/Cs.
The court heard that the beneficiary companies were in fact controlled by KLG, and there were no genuine commercial transactions relating to the purchase of electrolytic copper cathodes or aluminium ingots as claimed in the 25 L/Cs involved in the scam.
The court also heard that as a result of the scam, Sin Hua Bank released a total of US$28.78 million (about HK$222 million) under the L/Cs to the beneficiary companies. The sums were subsequently transferred to the bank account of KLG.
The prosecution was today represented by Paul Loughran on a fiat, assisted by ICAC officer Patrick Kwok.
Chin Kam-chiu, alias Chun Kam-chiu, 46, former chairman of KLG; Tsang Siu-lan, 34, former manager of KLG; Chow Wai-choi, 44, former deputy general manager of then Sin Hua Bank Limited (Sin Hua Bank); Hau Pui-yee, alias Hau Pui-ming, 53, former assistant g eneral manager of Sin Hua Bank, and Ma Kin-fai, 45, former senior branch manager of Sin Hua Bank, were found guilty of one count of conspiracy to defraud.
Mr Justice Pang Kin-kee adjourned the case until April 8, 2004 for sentence, and remanded the defendants in the custody of the Correctional Services Department.
The case arose from a complaint, alleging that Chun might have corruptly secured credit facilities from a bank. ICAC inquiries uncovered the conspiracy offence.
The charge stated that between November 1, 1998 and April 30, 1999, the defendants had conspired together and with other persons to defraud Sin Hua Bank, its shareholders and creditors by dishonestly:
- causing and permitting applications to be made to Sin Hua Bank by Keen Lloyd (Holdings) Limited and Keen Lloyd Motors Limited for the issue of L/Cs to finance the purported purchase of goods from a number of companies;
- causing and permitting the falsification of documentation required for the negotiation of the L/Cs; and
- causing and permitting payments to be made to the beneficiary companies pursuant to the negotiation of the L/Cs.
The court heard that the beneficiary companies were in fact controlled by KLG, and there were no genuine commercial transactions relating to the purchase of electrolytic copper cathodes or aluminium ingots as claimed in the 25 L/Cs involved in the scam.
The court also heard that as a result of the scam, Sin Hua Bank released a total of US$28.78 million (about HK$222 million) under the L/Cs to the beneficiary companies. The sums were subsequently transferred to the bank account of KLG.
The prosecution was today represented by Paul Loughran on a fiat, assisted by ICAC officer Patrick Kwok.