Ex-investment company shareholder jailed for $5m fraud
2006-11-24
A former shareholder of an investment company, charged by the ICAC, was today (Friday) sentenced to two and a half years' imprisonment at District Court for defrauding the company of $5 million over a small house development project in the New Territories , after having been extradited from Canada to Hong Kong to face prosecution.
Dai Shu-sing, 53, former shareholder of Mart Treasure Investment Limited (Mart Treasure), today pleaded guilty to one count of conspiracy to defraud. The court ordered five other theft charges against him be left on court file.
In sentencing, Deputy Judge Timothy Casewell said a custodial sentence was appropriate, as the offence committed by the defendant constituted a breach of trust.
The case arose from a corruption complaint. Subsequent ICAC inquiries revealed the fraud offence.
The court heard that Mart Treasure was an investment company involved in the development of small houses in Tsam Chuk Wan, Sai Kung. Peter Chan, then a practising solicitor, was appointed as the legal adviser of Mart Treasure.
In May 1997, Chan, through a middleman, approached Paron Investment Limited (Paron), which agreed to purchase the project at $13.2 million.
At a meeting held between shareholders and directors of Mart Treasure, Dai and Chan falsely represented that Paron had offered to purchase the project at $8.2 million, and persuaded other shareholders to sell the project at that price.
In September 1997, Chan prepared a provisional sale and purchase agreement at $13.2 million, which was signed by Dai on behalf of Mart Treasure.
On behalf of Mart Treasure, Chan received from Paron two instalments of $3.5 million and $4.9 million respectively for the project.
Chan subsequently transferred $4.3 million to Mart Treasure as partial payment of the sale.
Dai and Chan pocketed about $930,000 and $1.14 million respectively out of the remaining sum of $4.1 million, the court was told.
Amid the ICAC investigation, Dai left Hong Kong for Canada in November 2001.
A warrant for the arrest of Dai was issued by a Hong Kong magistrate in September 2003.
Dai was arrested by the Royal Canadian Mounted Police (RCMP) in Vancouver in May 2004 at the request of the Hong Kong SAR Government, through the Mutual Legal Assistance Unit of the Department of Justice. Since then, Dai had been on bail.
In August 2005, the Minister of Justice of Canada ordered the surrender of Dai to the ICAC. He was subsequently escorted back by ICAC officers to Hong Kong from Vancouver.
Chan, who was also charged for his role in the case, was found guilty of one count of conspiracy to defraud, and sentenced to five years' imprisonment in March 2004.
The prosecution was today represented by prosecuting counsel Audrey Campbell-Moffat, assisted by ICAC officer Dickens Wong.
Dai Shu-sing, 53, former shareholder of Mart Treasure Investment Limited (Mart Treasure), today pleaded guilty to one count of conspiracy to defraud. The court ordered five other theft charges against him be left on court file.
In sentencing, Deputy Judge Timothy Casewell said a custodial sentence was appropriate, as the offence committed by the defendant constituted a breach of trust.
The case arose from a corruption complaint. Subsequent ICAC inquiries revealed the fraud offence.
The court heard that Mart Treasure was an investment company involved in the development of small houses in Tsam Chuk Wan, Sai Kung. Peter Chan, then a practising solicitor, was appointed as the legal adviser of Mart Treasure.
In May 1997, Chan, through a middleman, approached Paron Investment Limited (Paron), which agreed to purchase the project at $13.2 million.
At a meeting held between shareholders and directors of Mart Treasure, Dai and Chan falsely represented that Paron had offered to purchase the project at $8.2 million, and persuaded other shareholders to sell the project at that price.
In September 1997, Chan prepared a provisional sale and purchase agreement at $13.2 million, which was signed by Dai on behalf of Mart Treasure.
On behalf of Mart Treasure, Chan received from Paron two instalments of $3.5 million and $4.9 million respectively for the project.
Chan subsequently transferred $4.3 million to Mart Treasure as partial payment of the sale.
Dai and Chan pocketed about $930,000 and $1.14 million respectively out of the remaining sum of $4.1 million, the court was told.
Amid the ICAC investigation, Dai left Hong Kong for Canada in November 2001.
A warrant for the arrest of Dai was issued by a Hong Kong magistrate in September 2003.
Dai was arrested by the Royal Canadian Mounted Police (RCMP) in Vancouver in May 2004 at the request of the Hong Kong SAR Government, through the Mutual Legal Assistance Unit of the Department of Justice. Since then, Dai had been on bail.
In August 2005, the Minister of Justice of Canada ordered the surrender of Dai to the ICAC. He was subsequently escorted back by ICAC officers to Hong Kong from Vancouver.
Chan, who was also charged for his role in the case, was found guilty of one count of conspiracy to defraud, and sentenced to five years' imprisonment in March 2004.
The prosecution was today represented by prosecuting counsel Audrey Campbell-Moffat, assisted by ICAC officer Dickens Wong.