Solicitor and four others jailed for deceiving $5.9m with false standby L/Cs
2006-7-7
A solicitor and four other persons, charged by the ICAC, were today (Friday) jailed for up to six years at the District Court for their roles in fraudulent schemes to swindle $5.93 million with bogus standby Letters of Credit (L/Cs).
Chan Nai-keung, 55, proprietor of Paul Chan & Co. Solicitors (Paul Chan & Co.) and Chiang Pak-yeung, 51, law clerk of Paul Chan & Co., each received a jail term of six years.
They were also ordered to pay the victim companies compensations totalling over $4.7 million.
Lee Kwok-on, 39, proprietor of Leading Group Investment Enterprise (Leading Group), was sentenced to four years and three months' imprisonment.
Albert Lee Tai-sang, 47, unemployed, was sentenced to two years and 11 months' imprisonment; while Collins Lee Chi-wing, 49, proprietor of International Finance Trading Company (International Finance), was jailed for two years and five weeks.
In sentencing, Deputy Judge Symon Wong remarked that the serious offences committed by Chan and Chiang was a breach of trust of the highest degree, which might undermine the reputation of Hong Kong as an international financial centre.
The judge also reprimanded Chan, Chiang and Lee Kwok-on for showing no remorse.
The five defendants were earlier convicted of a total of six counts of conspiracy to defraud and four counts of dealing with properties representing proceeds of indictable offences, which took place between January 2004 and January 2005.
The case arose from a corruption complaint. Subsequent ICAC inquiries revealed the above offences.
The court heard that Chan, Chiang, Lee Tai-sang and Lee Chi-wing falsely represented to two Mainland companies that International Finance Trading Company had agreed to arrange standby L/Cs for their use.
As a result of the false representation, the Mainland companies were misled into depositing with Paul Chan & Co. two sums of stake monies, respectively $468,000 and $2,652,000, which were subsequently pocketed by the defendants.
Chan, Chiang, Lee Tai-sang and Lee Kwok-on also conspired with other persons to defraud another Mainland company of stake money totalling $1.17 million with a copy of a false standby L/C and a copy of a false cashier order involving Leading Group.
The court also heard that with a copy of a false standby L/C involving Wah Shun Investment Enterprise Co. (Wah Shun), Chan, Chiang and Lee Tai-sang conspired to defraud a fourth Mainland company of stake money totalling $1.17 million.
Chan, Chiang and Lee Chi-wing also conspired to defraud a fifth Mainland company of stake money totalling $471,698, with a loan agreement involving International Finance.
The court also heard that Lee Chi-wing had dealt with sums of $468,000, $2,652,000 and $471,698, knowing that the sums represented proceeds of an indictable offence; while Lee Kwok-on had dealt with $1.17 million of crime proceeds.
Four other co-defendants, who were also charged in connection with the case, were Zhong Pei-hong, 44, proprietor of Wah Shun; Lam Chun, 36, a merchant; Andy Chan Man-chun, 31, a worker; and Lui Chung-yee, 47, unemployed.
Zhong, Lam and Andy Chan had pleaded guilty to their roles in the case. Zhong and Lam each received a jail term of 12 months, while Andy Chan was jailed for eight months.
Lui had absconded whilst on court bail, and a warrant for his arrest was issued by the court.
The prosecution was today represented by Thomas Iu, counsel on fiat, assisted by ICAC officer Stella Leung.
Chan Nai-keung, 55, proprietor of Paul Chan & Co. Solicitors (Paul Chan & Co.) and Chiang Pak-yeung, 51, law clerk of Paul Chan & Co., each received a jail term of six years.
They were also ordered to pay the victim companies compensations totalling over $4.7 million.
Lee Kwok-on, 39, proprietor of Leading Group Investment Enterprise (Leading Group), was sentenced to four years and three months' imprisonment.
Albert Lee Tai-sang, 47, unemployed, was sentenced to two years and 11 months' imprisonment; while Collins Lee Chi-wing, 49, proprietor of International Finance Trading Company (International Finance), was jailed for two years and five weeks.
In sentencing, Deputy Judge Symon Wong remarked that the serious offences committed by Chan and Chiang was a breach of trust of the highest degree, which might undermine the reputation of Hong Kong as an international financial centre.
The judge also reprimanded Chan, Chiang and Lee Kwok-on for showing no remorse.
The five defendants were earlier convicted of a total of six counts of conspiracy to defraud and four counts of dealing with properties representing proceeds of indictable offences, which took place between January 2004 and January 2005.
The case arose from a corruption complaint. Subsequent ICAC inquiries revealed the above offences.
The court heard that Chan, Chiang, Lee Tai-sang and Lee Chi-wing falsely represented to two Mainland companies that International Finance Trading Company had agreed to arrange standby L/Cs for their use.
As a result of the false representation, the Mainland companies were misled into depositing with Paul Chan & Co. two sums of stake monies, respectively $468,000 and $2,652,000, which were subsequently pocketed by the defendants.
Chan, Chiang, Lee Tai-sang and Lee Kwok-on also conspired with other persons to defraud another Mainland company of stake money totalling $1.17 million with a copy of a false standby L/C and a copy of a false cashier order involving Leading Group.
The court also heard that with a copy of a false standby L/C involving Wah Shun Investment Enterprise Co. (Wah Shun), Chan, Chiang and Lee Tai-sang conspired to defraud a fourth Mainland company of stake money totalling $1.17 million.
Chan, Chiang and Lee Chi-wing also conspired to defraud a fifth Mainland company of stake money totalling $471,698, with a loan agreement involving International Finance.
The court also heard that Lee Chi-wing had dealt with sums of $468,000, $2,652,000 and $471,698, knowing that the sums represented proceeds of an indictable offence; while Lee Kwok-on had dealt with $1.17 million of crime proceeds.
Four other co-defendants, who were also charged in connection with the case, were Zhong Pei-hong, 44, proprietor of Wah Shun; Lam Chun, 36, a merchant; Andy Chan Man-chun, 31, a worker; and Lui Chung-yee, 47, unemployed.
Zhong, Lam and Andy Chan had pleaded guilty to their roles in the case. Zhong and Lam each received a jail term of 12 months, while Andy Chan was jailed for eight months.
Lui had absconded whilst on court bail, and a warrant for his arrest was issued by the court.
The prosecution was today represented by Thomas Iu, counsel on fiat, assisted by ICAC officer Stella Leung.