Six months’ jail for $120,000 service payment fraud
2014-1-27
A former senior executive of a railway services company, who was arrested by the ICAC after leaving Hong Kong for about 13 years, was today (Monday) sentenced to six months’ imprisonment at the Kwun Tong Magistracy for his role in conspiracy to defraud the company of service payments totalling over $120,000.
Wang Zheng, 42, former deputy general manager of China Railway Services (Hong Kong) Limited (CRS), today pleaded guilty before Principal Magistrate Ernest Lin Kam-hung to two counts of conspiracy to defraud, contrary to Common Law.
Upon receipt of a corruption complaint in February 2000, the ICAC conducted enquiries and revealed the above offences. However, prior to the ICAC investigation, Wang left Hong Kong for the United States of America (USA) for post-graduate study and subseq uently settled in the USA.
After about 13 years, Wang returned to Hong Kong to visit his family. On December 19 last year, Wang was arrested by ICAC officers at the Hong Kong International Airport, and laid with the above charges.
The court heard that at the material time, CRS was a designated clearance agent of the then Kowloon-Canton Railway Corporation (KCRC). The customs documents in relation to goods imported into or exported from Shenzhen on KCRC cargo trains were prepared b y CRS.
In the course of business dealings between the two companies, Wang came to know Leung John Timothy alias Leung Chiu-ming, a then freight operations manager of KCRC.
In late 1998, Wang suggested placing bogus orders with KCRC as he had difficulties in claiming reimbursement of entertainment expenses from CRS. Leung agreed to the scam.
The court heard that Leung’s associate Chow Tak-kin arranged for his business associate Ho Tai-kwan, operator of Koichi Trading Company (Koichi), to receive cheques issued by KCRC.
On October 10, 1998, Wang issued to Leung a bogus haulage and devanning order of CRS, in which Koichi was appointed as the agent for KCRC to carry out the job.
Upon receipt of a job list for the bogus order, KCRC sent two invoices totalling $63,150 to CRS requesting service charges. After CRS settled the payment, Chow sent a debit note of Koichi to KCRC demanding payments totaling $56,850.
KCRC subsequently made the payments to Koichi. After receiving the payments, Ho issued a cheque of Koichi for $56,850 and gave it to Chow. Chow cashed the cheque and passed the same sum to Leung, who then passed it to Wang.
The court heard that in January 1999, Wang applied to same fraudulent means to conspire with Leung to use another bogus haulage and devanning order to defraud CRS of $60,000. Wang received the whole sum of crime proceeds.
The prosecution was today represented by Acting Senior Public Prosecutor Florrie Chan, assisted by ICAC officer Phoebe Sae-sam.
Wang Zheng, 42, former deputy general manager of China Railway Services (Hong Kong) Limited (CRS), today pleaded guilty before Principal Magistrate Ernest Lin Kam-hung to two counts of conspiracy to defraud, contrary to Common Law.
Upon receipt of a corruption complaint in February 2000, the ICAC conducted enquiries and revealed the above offences. However, prior to the ICAC investigation, Wang left Hong Kong for the United States of America (USA) for post-graduate study and subseq uently settled in the USA.
After about 13 years, Wang returned to Hong Kong to visit his family. On December 19 last year, Wang was arrested by ICAC officers at the Hong Kong International Airport, and laid with the above charges.
The court heard that at the material time, CRS was a designated clearance agent of the then Kowloon-Canton Railway Corporation (KCRC). The customs documents in relation to goods imported into or exported from Shenzhen on KCRC cargo trains were prepared b y CRS.
In the course of business dealings between the two companies, Wang came to know Leung John Timothy alias Leung Chiu-ming, a then freight operations manager of KCRC.
In late 1998, Wang suggested placing bogus orders with KCRC as he had difficulties in claiming reimbursement of entertainment expenses from CRS. Leung agreed to the scam.
The court heard that Leung’s associate Chow Tak-kin arranged for his business associate Ho Tai-kwan, operator of Koichi Trading Company (Koichi), to receive cheques issued by KCRC.
On October 10, 1998, Wang issued to Leung a bogus haulage and devanning order of CRS, in which Koichi was appointed as the agent for KCRC to carry out the job.
Upon receipt of a job list for the bogus order, KCRC sent two invoices totalling $63,150 to CRS requesting service charges. After CRS settled the payment, Chow sent a debit note of Koichi to KCRC demanding payments totaling $56,850.
KCRC subsequently made the payments to Koichi. After receiving the payments, Ho issued a cheque of Koichi for $56,850 and gave it to Chow. Chow cashed the cheque and passed the same sum to Leung, who then passed it to Wang.
The court heard that in January 1999, Wang applied to same fraudulent means to conspire with Leung to use another bogus haulage and devanning order to defraud CRS of $60,000. Wang received the whole sum of crime proceeds.
The prosecution was today represented by Acting Senior Public Prosecutor Florrie Chan, assisted by ICAC officer Phoebe Sae-sam.