Duo charged with $2.6m hotel operation fraud
2014-4-15
A former chief executive officer of a hotel and a businessman have been charged today (Tuesday) by the ICAC with conspiracy to defraud the hotel owner of about $2.6 million and laundering $250,000 in relation to the setting up of a restaurant at the hotel .
William Yu Lik-wai, 49, former chief executive officer of Gloucester Hotel (GH), and Albert Cheung, 49, businessman, jointly face two charges –'96 one of conspiracy to defraud, contrary to Common Law, and one of dealing with property known or believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organised and Serious Crimes Ordinance.
The defendants, currently on ICAC bail, will appear in the Eastern Magistracy at 9:30 am on Thursday (April 17) for transfer to the District Court for plea.
The case arose from a corruption investigation. Subsequent ICAC enquiries revealed the above alleged offences.
At the material time, a building in Wan Chai was refurbished with a view to leasing for operating hotel business and providing around 50 serviced apartments for rental.
Upon Yu’s invitation, a friend of Yu invested in renting the building and signed a lease agreement with the building owner in April 2012 for 20 years.
According to the lease agreement, the building should only be operated as a hotel or a guest house, including a restaurant inside the building, and should not be partly or wholly sub-let to a third party.
After renaming the building as GH, Yu’s friend –'96 the de facto sole owner of GH –'96 employed Yu as its chief executive officer. Later on, Yu entrusted businessman Cheung to look for an external caterer for operating the restaurant at GH.
One of the charges alleges that between January 8 and April 16, 2013, Yu and Cheung conspired together and with intent to defraud the de facto sole owner of GH by dishonestly falsely representing to the latter that the restaurant on the ground floor and f irst floor of GH would be exclusively operated and managed by Yu.
The defendants are alleged to have concealed from the de facto sole owner of GH that a sum of approximately $980,000 would be collected by them in their personal capacity from a businessman to allow him to operate and manage the restaurant, together with two other businessmen.
The defendants are also alleged to have concealed from the de facto sole owner of GH that a sum of approximately $1.6 million would be collected by them in their personal capacity from the first businessman as a start-up cost for the restaurant, and that they would collect the start-up cost of the restaurant from the de facto sole owner of GH.
The other charge alleges that on April 16, 2013, the defendants dealt with a sum of $250,000, knowing or having reasonable grounds to believe that the sum of money, in whole or in part, directly or indirectly represented proceeds of an indictable offence.
GH has rendered full assistance to the ICAC during its investigation.
William Yu Lik-wai, 49, former chief executive officer of Gloucester Hotel (GH), and Albert Cheung, 49, businessman, jointly face two charges –'96 one of conspiracy to defraud, contrary to Common Law, and one of dealing with property known or believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organised and Serious Crimes Ordinance.
The defendants, currently on ICAC bail, will appear in the Eastern Magistracy at 9:30 am on Thursday (April 17) for transfer to the District Court for plea.
The case arose from a corruption investigation. Subsequent ICAC enquiries revealed the above alleged offences.
At the material time, a building in Wan Chai was refurbished with a view to leasing for operating hotel business and providing around 50 serviced apartments for rental.
Upon Yu’s invitation, a friend of Yu invested in renting the building and signed a lease agreement with the building owner in April 2012 for 20 years.
According to the lease agreement, the building should only be operated as a hotel or a guest house, including a restaurant inside the building, and should not be partly or wholly sub-let to a third party.
After renaming the building as GH, Yu’s friend –'96 the de facto sole owner of GH –'96 employed Yu as its chief executive officer. Later on, Yu entrusted businessman Cheung to look for an external caterer for operating the restaurant at GH.
One of the charges alleges that between January 8 and April 16, 2013, Yu and Cheung conspired together and with intent to defraud the de facto sole owner of GH by dishonestly falsely representing to the latter that the restaurant on the ground floor and f irst floor of GH would be exclusively operated and managed by Yu.
The defendants are alleged to have concealed from the de facto sole owner of GH that a sum of approximately $980,000 would be collected by them in their personal capacity from a businessman to allow him to operate and manage the restaurant, together with two other businessmen.
The defendants are also alleged to have concealed from the de facto sole owner of GH that a sum of approximately $1.6 million would be collected by them in their personal capacity from the first businessman as a start-up cost for the restaurant, and that they would collect the start-up cost of the restaurant from the de facto sole owner of GH.
The other charge alleges that on April 16, 2013, the defendants dealt with a sum of $250,000, knowing or having reasonable grounds to believe that the sum of money, in whole or in part, directly or indirectly represented proceeds of an indictable offence.
GH has rendered full assistance to the ICAC during its investigation.