Ex-Keen Lloyd chairman and four others jailed for $223m L/C fraud
2004-4-20
The Court of First Instance today (Tuesday) meted out jail terms up to six and a half years to five persons for their roles in a US$28.78 million (about HK$223 million) Letters of Credit (L/Cs) fraud involving Keen Lloyd Group (KLG).
Chin Kam-chiu, alias Chun Kam-chiu, 46, former chairman of KLG; received a jail term of six and a half years, while Chow Wai-choi, 44, former deputy general manager of then Sin Hua Bank Limited (Sin Hua Bank), was jailed for five and a half years.
Tsang Siu-lan, 34, former manager of KLG; Hau Pui-yee, alias Hau Pui-ming, 53, former assistant general manager of Sin Hua Bank, and Ma Kin-fai, 45, former senior branch manager of Sin Hua Bank, were each sentenced to four and a half years' imprisonment.
In sentencing, Mr Justice Pang Kin-kee said the defendants each played a pivotal role in the fraud, which had put the bank at risk.
The five defendants were earlier found guilty by a jury on one count of conspiracy to defraud.
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 as a result, Sin Hua Bank released a total of US$28.78 million (about HK$223 million) under the L/Cs to the beneficiary companies. The sums were subsequently transferred to the bank account of KLG.
The court also heard that the beneficiary companies were in fact controlled by KLG, while 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 prosecution was today represented by Senior Assistant Director of Public Prosecutions Bernard Ryan, assisted by ICAC officer Patrick Kwok.
Chin Kam-chiu, alias Chun Kam-chiu, 46, former chairman of KLG; received a jail term of six and a half years, while Chow Wai-choi, 44, former deputy general manager of then Sin Hua Bank Limited (Sin Hua Bank), was jailed for five and a half years.
Tsang Siu-lan, 34, former manager of KLG; Hau Pui-yee, alias Hau Pui-ming, 53, former assistant general manager of Sin Hua Bank, and Ma Kin-fai, 45, former senior branch manager of Sin Hua Bank, were each sentenced to four and a half years' imprisonment.
In sentencing, Mr Justice Pang Kin-kee said the defendants each played a pivotal role in the fraud, which had put the bank at risk.
The five defendants were earlier found guilty by a jury on one count of conspiracy to defraud.
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 as a result, Sin Hua Bank released a total of US$28.78 million (about HK$223 million) under the L/Cs to the beneficiary companies. The sums were subsequently transferred to the bank account of KLG.
The court also heard that the beneficiary companies were in fact controlled by KLG, while 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 prosecution was today represented by Senior Assistant Director of Public Prosecutions Bernard Ryan, assisted by ICAC officer Patrick Kwok.