Duo jailed for roles in bribery and $1.8m fraud
2012-6-8
Two former employees of a trading company, charged by the ICAC, were today (Friday) each sentenced to a jail term of three and a half years at the District Court for accepting over $94,000 in illegal rebates from suppliers and deceiving more than $1.8 mil lion from the company.
Chae Man-tock, 45, a former merchandising manager of Promo International Limited (PIL), and his wife Chow Shuk-mei, 40, a former senior merchandiser of PIL, were also ordered to pay over $94,000 as restitution to their former employer.
In sentencing, Judge Kevin Browne remarked that the defendants’ acts constituted a serious breach of trust, and that their bribery and fraud offences spanned over three years and involved a substantial sum of money.
The judge also said their acts had undermined the reputation of Hong Kong as an international financial centre.
Chae and Chow were earlier respectively convicted of two counts and three counts of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO). Chow alone was found guilty of two counts of aiding and abetting Chae in accepting advantages. Chae and Chow were also convicted of 25 counts of fraud.
The court heard that PIL, a company incorporated in the United Kingdom trading as Olympicpromo, was engaged in the trading of premium products for its clients in Europe.
Mega Handbag Manufactory Limited (MHML) was a bag supplier of PIL, while Macro Development Limited (MDL) was a stationery and sundry products supplier of PIL.
Man Kim-ming was the director cum major shareholder of MDL and employed Chan Wai-chung as an engineering manager. In April 2009, Chan left MDL and set up Marco Union Co. (MUC).
Between May 2007 and June 2010, Chae and Chow accepted a total of over $94,000 in illegal rebates from Man, Chan and a general manager of MHML.
In return, Chae and Chow awarded 20 PIL purchase orders worth $7.5 million to MHML, MDL and MUC.
The court heard that between March 2007 and August 2010, Chae and Chow also marked up prices of goods in 74 quotations of suppliers by about eight to 10 per cent.
Subsequently, Chae and Chow sent those quotations to PIL, causing PIL to place purchase orders with those suppliers at the inflated prices.
After the payments were released to the suppliers, Chae and Chow asked those suppliers to return the inflated sums to them.
As a result, Chae and Chow deceived a total of over $1.8 million from PIL, the court was told.
Man, 46, and Chan, 43, who were also charged by the ICAC, earlier pleaded guilty at Shatin Magistracy respectively to two and four counts of offering advantages to Chow, contrary to Section 9(2)(a) of the POBO. They will be sentenced on June 19.
The prosecution was today represented by prosecuting counsel Leslie Parry, assisted by ICAC officer Edward Cheng.
Chae Man-tock, 45, a former merchandising manager of Promo International Limited (PIL), and his wife Chow Shuk-mei, 40, a former senior merchandiser of PIL, were also ordered to pay over $94,000 as restitution to their former employer.
In sentencing, Judge Kevin Browne remarked that the defendants’ acts constituted a serious breach of trust, and that their bribery and fraud offences spanned over three years and involved a substantial sum of money.
The judge also said their acts had undermined the reputation of Hong Kong as an international financial centre.
Chae and Chow were earlier respectively convicted of two counts and three counts of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO). Chow alone was found guilty of two counts of aiding and abetting Chae in accepting advantages. Chae and Chow were also convicted of 25 counts of fraud.
The court heard that PIL, a company incorporated in the United Kingdom trading as Olympicpromo, was engaged in the trading of premium products for its clients in Europe.
Mega Handbag Manufactory Limited (MHML) was a bag supplier of PIL, while Macro Development Limited (MDL) was a stationery and sundry products supplier of PIL.
Man Kim-ming was the director cum major shareholder of MDL and employed Chan Wai-chung as an engineering manager. In April 2009, Chan left MDL and set up Marco Union Co. (MUC).
Between May 2007 and June 2010, Chae and Chow accepted a total of over $94,000 in illegal rebates from Man, Chan and a general manager of MHML.
In return, Chae and Chow awarded 20 PIL purchase orders worth $7.5 million to MHML, MDL and MUC.
The court heard that between March 2007 and August 2010, Chae and Chow also marked up prices of goods in 74 quotations of suppliers by about eight to 10 per cent.
Subsequently, Chae and Chow sent those quotations to PIL, causing PIL to place purchase orders with those suppliers at the inflated prices.
After the payments were released to the suppliers, Chae and Chow asked those suppliers to return the inflated sums to them.
As a result, Chae and Chow deceived a total of over $1.8 million from PIL, the court was told.
Man, 46, and Chan, 43, who were also charged by the ICAC, earlier pleaded guilty at Shatin Magistracy respectively to two and four counts of offering advantages to Chow, contrary to Section 9(2)(a) of the POBO. They will be sentenced on June 19.
The prosecution was today represented by prosecuting counsel Leslie Parry, assisted by ICAC officer Edward Cheng.