Man admits role in false standby L/C plot
2005-1-28
A man, who was among seven persons earlier charged by the ICAC in connection with a fraudulent scheme to swindle money with bogus standby Letters of Credit (L/Cs), admitted his role at Eastern Magistracy today (Friday).
Andy Chan Man-chun, 30, a worker, pleaded guilty to one count of conspiracy to use a copy of a false instrument.
Magistrate Mr Ian Candy adjourned the case until February 17, 2005 for sentence. The defendant was remanded in ICAC custody.
The case arose from a corruption complaint involving a solicitor, a law clerk and a criminal syndicate who was alleged to have swindled money from Mainland merchants with bogus standby L/Cs. Subsequent ICAC inquiries revealed the conspiracy offence.
The court heard that the defendant was a member of a syndicate engaged in fraudulent standby L/C transactions.
On January 14, 2005, a syndicate member told the defendant that a Mainland company was seeking to obtain a standby L/C in the amount of US$3 million.
The defendant was asked to identify a company, which would purport to issue the L/C, and a solicitors firm for keeping the stake money totalling HK$1,170,000, being five per cent of the face value of the L/C.
The syndicate agreed to involve a Hong Kong investment company and a solicitors firm in the scheme.
The court heard that an agreement was signed in the solicitors firm between the proprietor of the Hong Kong investment company and the Mainland company for the former to arrange the issue of a standby L/C in the amount of US$3 million.
It was agreed that the defendant and another syndicate member would each obtain about HK$92,500 as rewards, whereas a solicitor and his clerk would share about HK$290,000 for their alleged roles in the scheme.
The court heard that on January 20, 2005, the defendant passed a false standby L/C, purportedly issued by JP Morgan Chase Bank, New York, to the solicitors firm.
The proprietor of the Hong Kong invesment company turned up at the solicitors firm and collected a cash cheque in the amount of HK$1,170,000, being the stake money for the standby L/C, after which he cashed the cheque at a bank, while other syndicate memb ers waited outside.
When arrested by the ICAC, the stake money of HK$1,170,000 was recovered from two of the syndicate members.
The prosecution was today represented by Senior Government Counsel Alex Lee, assisted by ICAC officer Stella Leung.
Andy Chan Man-chun, 30, a worker, pleaded guilty to one count of conspiracy to use a copy of a false instrument.
Magistrate Mr Ian Candy adjourned the case until February 17, 2005 for sentence. The defendant was remanded in ICAC custody.
The case arose from a corruption complaint involving a solicitor, a law clerk and a criminal syndicate who was alleged to have swindled money from Mainland merchants with bogus standby L/Cs. Subsequent ICAC inquiries revealed the conspiracy offence.
The court heard that the defendant was a member of a syndicate engaged in fraudulent standby L/C transactions.
On January 14, 2005, a syndicate member told the defendant that a Mainland company was seeking to obtain a standby L/C in the amount of US$3 million.
The defendant was asked to identify a company, which would purport to issue the L/C, and a solicitors firm for keeping the stake money totalling HK$1,170,000, being five per cent of the face value of the L/C.
The syndicate agreed to involve a Hong Kong investment company and a solicitors firm in the scheme.
The court heard that an agreement was signed in the solicitors firm between the proprietor of the Hong Kong investment company and the Mainland company for the former to arrange the issue of a standby L/C in the amount of US$3 million.
It was agreed that the defendant and another syndicate member would each obtain about HK$92,500 as rewards, whereas a solicitor and his clerk would share about HK$290,000 for their alleged roles in the scheme.
The court heard that on January 20, 2005, the defendant passed a false standby L/C, purportedly issued by JP Morgan Chase Bank, New York, to the solicitors firm.
The proprietor of the Hong Kong invesment company turned up at the solicitors firm and collected a cash cheque in the amount of HK$1,170,000, being the stake money for the standby L/C, after which he cashed the cheque at a bank, while other syndicate memb ers waited outside.
When arrested by the ICAC, the stake money of HK$1,170,000 was recovered from two of the syndicate members.
The prosecution was today represented by Senior Government Counsel Alex Lee, assisted by ICAC officer Stella Leung.