Three years’ jail for accepting $270,000 bribes over diamond orders
2010-9-29
A former manager of a jewellery company, charged by the ICAC, was today (Wednesday) sentenced to three years’ imprisonment at the District Court for accepting about HK$270,000 in illegal rebates for placing purchase orders for diamonds with a supplier.
Isabel Jalbaud, alias Ellie Ho, 52, former export manager of Jewelry Kingdom Limited (JKL), was also ordered to pay HK$130,000 each to JKL and Schachter & Namdar Asia Limited (SNA), a diamond supplier of JKL.
In sentencing, Judge Joseph Yau Chi-lap said a custodial sentence was appropriate for the defendant in view of her breach of trust and serious offences lasting a long period of time.
The judge said the starting point of three years and three months was reduced to three years, taking into account the defendant’s clear record and her mitigation.
The defendant was earlier found guilty of one count of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO); and one of conspiracy to defraud.
Patricia Kam Che-yee, 29, former sales representative of SNA, who was also charged by the ICAC for her role in the case, earlier pleaded guilty to one count of offering an advantage to an agent, contrary to Section 9(2)(a) of the POBO. Another fraud char ge against her was ordered to be left on court file.
The judge adjourned Kam’s case until October 15 for sentence, pending a community service order report. Kam was remanded in the custody of the Correctional Services Department.
The court heard that at the time of the offences, JKL, a jewellery retailer in Hong Kong, operated two shops in Tsim Sha Tsui. SNA was an Israel-based diamond supplier.
In November 2006, Jalbaud, on behalf of JKL, started placing orders for diamonds with SNA through Kam.
In the first few transactions with JKL, Kam collected full payments from JKL. But when Kam asked for payments and the return of diamonds on consignment in mid January 2007, Jalbaud solicited rebates from her.
Jalbaud told Kam that if Kam refused to pay rebates, she would not settle the outstanding payments and would delay the return of diamonds on consignment. Kam then acceded to Jalbaud’s solicitation.
The court heard that Kam, on Jalbaud’s suggestion, prepared two sets of handwritten invoices for every transaction to deceive JKL and SNA. The invoice with a lesser discount rate was given to JKL, while the one with a higher discount rate of around 4% to 7% was returned to SNA.
As a result, JKL would pay a higher sum, while SNA accepted a lesser amount. The difference so incurred was rebates to Jalbaud.
Jalbaud also threatened that if Kam ceased to pay the rebates, she would disclose their illicit acts. Their corrupt dealings continued until 2008 when Jalbaud left JKL.
Between January 2007 and September 2008, there were 37 diamond transactions between JKL and SNA. During the period, about US$34,748 (about HK$270,000) in bribes were paid by Kam and accepted by Jalbaud, the court was told.
The prosecution was today represented by prosecuting counsel Flora Cheng, assisted by ICAC officers Ming Lee and Fiona Wan.
Isabel Jalbaud, alias Ellie Ho, 52, former export manager of Jewelry Kingdom Limited (JKL), was also ordered to pay HK$130,000 each to JKL and Schachter & Namdar Asia Limited (SNA), a diamond supplier of JKL.
In sentencing, Judge Joseph Yau Chi-lap said a custodial sentence was appropriate for the defendant in view of her breach of trust and serious offences lasting a long period of time.
The judge said the starting point of three years and three months was reduced to three years, taking into account the defendant’s clear record and her mitigation.
The defendant was earlier found guilty of one count of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO); and one of conspiracy to defraud.
Patricia Kam Che-yee, 29, former sales representative of SNA, who was also charged by the ICAC for her role in the case, earlier pleaded guilty to one count of offering an advantage to an agent, contrary to Section 9(2)(a) of the POBO. Another fraud char ge against her was ordered to be left on court file.
The judge adjourned Kam’s case until October 15 for sentence, pending a community service order report. Kam was remanded in the custody of the Correctional Services Department.
The court heard that at the time of the offences, JKL, a jewellery retailer in Hong Kong, operated two shops in Tsim Sha Tsui. SNA was an Israel-based diamond supplier.
In November 2006, Jalbaud, on behalf of JKL, started placing orders for diamonds with SNA through Kam.
In the first few transactions with JKL, Kam collected full payments from JKL. But when Kam asked for payments and the return of diamonds on consignment in mid January 2007, Jalbaud solicited rebates from her.
Jalbaud told Kam that if Kam refused to pay rebates, she would not settle the outstanding payments and would delay the return of diamonds on consignment. Kam then acceded to Jalbaud’s solicitation.
The court heard that Kam, on Jalbaud’s suggestion, prepared two sets of handwritten invoices for every transaction to deceive JKL and SNA. The invoice with a lesser discount rate was given to JKL, while the one with a higher discount rate of around 4% to 7% was returned to SNA.
As a result, JKL would pay a higher sum, while SNA accepted a lesser amount. The difference so incurred was rebates to Jalbaud.
Jalbaud also threatened that if Kam ceased to pay the rebates, she would disclose their illicit acts. Their corrupt dealings continued until 2008 when Jalbaud left JKL.
Between January 2007 and September 2008, there were 37 diamond transactions between JKL and SNA. During the period, about US$34,748 (about HK$270,000) in bribes were paid by Kam and accepted by Jalbaud, the court was told.
The prosecution was today represented by prosecuting counsel Flora Cheng, assisted by ICAC officers Ming Lee and Fiona Wan.