Ex-CUHK technician and company owner jailed for fraud and bribery
2011-11-3
A former senior technician of the Chinese University of Hong Kong (CUHK) and an owner of a computer equipment company, charged by the ICAC, were today (Thursday) jailed at the District Court for their roles in fraud and bribery in relation to over $1.7 mi llion worth of purchase orders.
Lam Kong, 55, former senior technician of CUHK, received a jail sentence of 23 months, while Chan Chin-pang, 52, owner of Sino Smart Technology Limited (Sino Smart), was jailed for 14 months.
In sentencing, Judge Anthea Pang Po-kam said the defendants committed offences of a serious nature, thus deserving immediate custodial sentences.
The judge added that their acts constituted a breach of trust, and undermined the integrity of the tendering system.
Lam and Chan earlier pleaded guilty to a joint charge of conspiracy to defraud, contrary to the Common Law.
Lam also admitted to one count of public servant accepting an advantage, contrary to Section 4(2)(c) of the Prevention of Bribery Ordinance (POBO); and one of dealing with property known or reasonably believed to represent proceeds of an indictable offenc e, contrary to Section 25(1) of the Organised and Serious Crimes Ordinance.
Chan alone admitted to one count of offering an advantage to a public servant, contrary to Section 4(1)(c) of the POBO.
The court heard that Chan and Lam had known each other for over 20 years.
At the material times, Chan was a director of DMN Technology Limited (DMN) as well as the owner of Sino Smart. Lam was a senior technician posted to the School of Journalism and Communication (SJC) of CUHK.
Between October 6, 2008 and October 27, 2009, Lam dishonestly caused CUHK to award 13 orders worth over $1.7 million to DMN and Sino Smart for the purchase of audio and visual equipment for use by the SJC.
After receiving payments from CUHK for 12 of the purchase orders, Chan deducted five to eight per cent as “commission” for the preparation of documents. The remaining proceeds would be paid to Lam for carrying out the obligations of DMN and Sino Smart under the purchase orders.
As far as the remaining purchase order was concerned, Chan obtained the goods at a cost of about $300,000. On the instruction of Lam, DMN submitted a quotation of $482,000 to CUHK and was awarded the purchase order, thereby making a profit of over $180,0 00.
Out of the profit, Chan paid $50,000 to Lam as rebate on February 10, 2009, the court heard.
Between December 12, 2008 and February 10, 2009, Lam dealt with crime proceeds totalling over $550,000, which were deposited into his bank account by Chan’s wife, the court was told.
CUHK had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Bernard Chung, assisted by ICAC officer Glory Leung.
Lam Kong, 55, former senior technician of CUHK, received a jail sentence of 23 months, while Chan Chin-pang, 52, owner of Sino Smart Technology Limited (Sino Smart), was jailed for 14 months.
In sentencing, Judge Anthea Pang Po-kam said the defendants committed offences of a serious nature, thus deserving immediate custodial sentences.
The judge added that their acts constituted a breach of trust, and undermined the integrity of the tendering system.
Lam and Chan earlier pleaded guilty to a joint charge of conspiracy to defraud, contrary to the Common Law.
Lam also admitted to one count of public servant accepting an advantage, contrary to Section 4(2)(c) of the Prevention of Bribery Ordinance (POBO); and one of dealing with property known or reasonably believed to represent proceeds of an indictable offenc e, contrary to Section 25(1) of the Organised and Serious Crimes Ordinance.
Chan alone admitted to one count of offering an advantage to a public servant, contrary to Section 4(1)(c) of the POBO.
The court heard that Chan and Lam had known each other for over 20 years.
At the material times, Chan was a director of DMN Technology Limited (DMN) as well as the owner of Sino Smart. Lam was a senior technician posted to the School of Journalism and Communication (SJC) of CUHK.
Between October 6, 2008 and October 27, 2009, Lam dishonestly caused CUHK to award 13 orders worth over $1.7 million to DMN and Sino Smart for the purchase of audio and visual equipment for use by the SJC.
After receiving payments from CUHK for 12 of the purchase orders, Chan deducted five to eight per cent as “commission” for the preparation of documents. The remaining proceeds would be paid to Lam for carrying out the obligations of DMN and Sino Smart under the purchase orders.
As far as the remaining purchase order was concerned, Chan obtained the goods at a cost of about $300,000. On the instruction of Lam, DMN submitted a quotation of $482,000 to CUHK and was awarded the purchase order, thereby making a profit of over $180,0 00.
Out of the profit, Chan paid $50,000 to Lam as rebate on February 10, 2009, the court heard.
Between December 12, 2008 and February 10, 2009, Lam dealt with crime proceeds totalling over $550,000, which were deposited into his bank account by Chan’s wife, the court was told.
CUHK had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Bernard Chung, assisted by ICAC officer Glory Leung.