Former listed company's executives guilty of $100m L/C fraud
2004-10-6
The chairman of a former publicly listed company, Firstone International Holdings Limited (Firstone), and eight other persons, charged by the ICAC, were today (Wednesday) found guilty at District Court for their roles in a fraudulent scam to deceive over $100 million in Letters of Credit (L/C) facilities.
The defendants were Wan Sitt-kam, chairman of Firstone; Lee Sau-tong, director of Firstone and wife of Wan; Chan Chuen-wing, director of Firstone; Leo Yee-sang, Ng Pik-yuk, Law Fung-chee, and Lee Jen-chiek, all staff members of Firstone; Ho Li-fang, forme r director of a trading company; and Muk To-wai, proprietor of another trading company.
Wan was found guilty on 11 counts of conspiracy to defraud, while the remaining defendants were also convicted of their respectively roles in the scam.
Deputy Judge Colin Mackintosh will continue to deliver the reasons for verdict tomorrow (Thursday).
The case arose from a corruption complaint in connection with Firstone.
Subsequent ICAC enquiries revealed a fraudulent scheme for the defendants to deceive L/C facilities, totalling over $100 million, from a number of banks.
The court heard that the applications for the L/C facilities were based on bogus business transactions between February 1994 and December 1997.
Wan Sitt-kam, Lee Sau-tong, Chan Chuen-wing and Leo Yee-sang were remanded in the custody of the Correctional Services Department, while the remaining defendants were granted cash bail ranging from $20,000 to $200,000.
The prosecution was today represented by Senior Government Counsel Alex Lee, assisted by ICAC officer Ken Wong.
The defendants were Wan Sitt-kam, chairman of Firstone; Lee Sau-tong, director of Firstone and wife of Wan; Chan Chuen-wing, director of Firstone; Leo Yee-sang, Ng Pik-yuk, Law Fung-chee, and Lee Jen-chiek, all staff members of Firstone; Ho Li-fang, forme r director of a trading company; and Muk To-wai, proprietor of another trading company.
Wan was found guilty on 11 counts of conspiracy to defraud, while the remaining defendants were also convicted of their respectively roles in the scam.
Deputy Judge Colin Mackintosh will continue to deliver the reasons for verdict tomorrow (Thursday).
The case arose from a corruption complaint in connection with Firstone.
Subsequent ICAC enquiries revealed a fraudulent scheme for the defendants to deceive L/C facilities, totalling over $100 million, from a number of banks.
The court heard that the applications for the L/C facilities were based on bogus business transactions between February 1994 and December 1997.
Wan Sitt-kam, Lee Sau-tong, Chan Chuen-wing and Leo Yee-sang were remanded in the custody of the Correctional Services Department, while the remaining defendants were granted cash bail ranging from $20,000 to $200,000.
The prosecution was today represented by Senior Government Counsel Alex Lee, assisted by ICAC officer Ken Wong.