Trio jailed for defrauding Judiciary of $61m contract
2007-7-16
Two shareholders and an assistant contract manager of a company, charged by the ICAC, were today (Monday) each sentenced to three years' imprisonment at District Court for conspiracy to defraud the Judiciary of a $61 million digital audio recording and tr anscription services contract known as the DARTS contract.
Lui Mei-chi, 42, shareholder-cum-director and contract manager of Megaluck International Limited (Megaluck); Lui Mei-chong, 41, shareholder-cum-director of Megaluck; and Lui Yuen-fai, 37, assistant contract manager of Megaluck, were earlier found guilty o f one count of conspiracy to defraud.
In sentencing, Judge Andrew Chan Hing-wai said custodial sentences were meted out to the defendants as the fraud involved substantial contract sums, and had brought an adverse impact on the government tendering system.
The judge also said the defendants had played equal roles in defrauding the Judiciary through a sophisticated scheme.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the offence of conspiracy to defraud.
The court heard that the Judiciary invited tenders for the DARTS contract on June 4, 2004.
On July 15, 2004, Megaluck and other companies submitted tenders to the Judiciary for the contract. Under the contract, the contractor had to provide digital audio recording and transcription services to the Lands Tribunal, the Coroner's Court, the Labou r Tribunal, the Obscene Articles Tribunal, and the Magistrates' Courts.
Megaluck was awarded the DARTS contract on October 28, 2004 by the Judiciary upon the recommendation of its tender assessment panel.
Subsequent examination of Megaluck's tender, however, revealed that the defendants had conspired together to defraud the Judiciary.
The court heard that they falsely represented to the tender assessment panel of the Judiciary that two persons were in the employ of Megaluck as a transcription production supervisor and an audio recording supervisor respectively.
They also falsely claimed that Megaluck had installed conference and recording system and provided interpretation and transcription services for an engineering and trading company under a contract of $380,000, and installed another system for a swimming p ool services company for a contract sum of $86,000.
As a result of the false representation, the Judiciary was induced to award a contract worth $61 million to Megaluck for the provision of digital audio recording and transcription services, the court was told.
The Judiciary had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by Senior Assistant Director of Public Prosecutions Peter Chapman, assisted by ICAC officer Randy Wong.
Lui Mei-chi, 42, shareholder-cum-director and contract manager of Megaluck International Limited (Megaluck); Lui Mei-chong, 41, shareholder-cum-director of Megaluck; and Lui Yuen-fai, 37, assistant contract manager of Megaluck, were earlier found guilty o f one count of conspiracy to defraud.
In sentencing, Judge Andrew Chan Hing-wai said custodial sentences were meted out to the defendants as the fraud involved substantial contract sums, and had brought an adverse impact on the government tendering system.
The judge also said the defendants had played equal roles in defrauding the Judiciary through a sophisticated scheme.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the offence of conspiracy to defraud.
The court heard that the Judiciary invited tenders for the DARTS contract on June 4, 2004.
On July 15, 2004, Megaluck and other companies submitted tenders to the Judiciary for the contract. Under the contract, the contractor had to provide digital audio recording and transcription services to the Lands Tribunal, the Coroner's Court, the Labou r Tribunal, the Obscene Articles Tribunal, and the Magistrates' Courts.
Megaluck was awarded the DARTS contract on October 28, 2004 by the Judiciary upon the recommendation of its tender assessment panel.
Subsequent examination of Megaluck's tender, however, revealed that the defendants had conspired together to defraud the Judiciary.
The court heard that they falsely represented to the tender assessment panel of the Judiciary that two persons were in the employ of Megaluck as a transcription production supervisor and an audio recording supervisor respectively.
They also falsely claimed that Megaluck had installed conference and recording system and provided interpretation and transcription services for an engineering and trading company under a contract of $380,000, and installed another system for a swimming p ool services company for a contract sum of $86,000.
As a result of the false representation, the Judiciary was induced to award a contract worth $61 million to Megaluck for the provision of digital audio recording and transcription services, the court was told.
The Judiciary had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by Senior Assistant Director of Public Prosecutions Peter Chapman, assisted by ICAC officer Randy Wong.