A former consultant of a listed company, formerly known as Surge Recreation Holdings Limited (Surge), who was charged by the ICAC, was today (Wednesday) sentenced to one year's imprisonment at the District Court for embezzling $2 million from the company.

Tyrone Chan Ting-kwan, 42, was earlier found guilty by Deputy Judge Ernest Lin Kam-hung of one count of theft.

The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the theft offence.

The court heard that at the time of the offence, Chan was the consultant of Surge.

Surge had maintained an account with Wing Hang Bank, while both Chan and Li Tat-ting, former chairman of Surge, were authorised signatories of the company’s account.

On August 14, 2002, Chan and Li jointly signed a cash cheque (with no payee's name) for $2 million.

In September 2002, Li falsely told the chief accountant of Surge that the $2 million was used by the company's subsidiary in the Mainland.

ICAC investigation revealed that the sum in issue was transferred to the accounts of Chan's close relatives or companies under his control.

Li, 52, was earlier arrested by the ICAC. He was due to report bail to the Commission on June 20 last year, but failed to turn up.

Upon an application from the ICAC, the Eastern Magistracy subsequently issued a warrant for the arrest of Li.

The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Eric Fan.