Solicitor and housewife guilty of laundering HK$230m crime proceeds
2014-8-25
A partner of a solicitors firm and the wife of a former executive director of a listed company, charged by the ICAC, were today (Monday) convicted at the District Court of laundering about HK$230 million in crime proceeds.
Wu Wing-kit, 57, solicitor and partner of Fred Kan & Co. (FKC), was found guilty of one count of dealing with property known or reasonably believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organised and Serious Crim es Ordinance.
Co-defendant Ye Fang, 43, housewife and wife of Chen Keen, a former executive director of listed Natural Dairy (NZ) Holdings Limited (NDNZ), was convicted of a similar offence.
Judge Eddie Yip Chor-man adjourned the case to this Friday (August 29) for mitigation, and remanded the defendants in the custody of the Correctional Services Department.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, NDNZ, formerly known as China Jin Hui Mining Corporation Limited, was listed on the Main Board of the Stock Exchange of Hong Kong (SEHK).
Between December 2009 and February 2010, NDNZ raised HK$790 million through the issue of convertible notes for acquiring 22 dairy farms in New Zealand from May Hao, owner of UBNZ Trustee Limited (UBTL). Subsequently, the acquisition was queried by the SE HK after receiving a complaint concerning allegations of fraud.
Out of the HK$790 million, HK$693 million (NZ$125 million) was remitted to a lawyer acting for NDNZ in New Zealand and NZ$51.6 million of that money was paid to UBTL in February 2010. Hao then remitted HK$73.7 million (NZ$13.7 million) back to a company owned by Chen in Hong Kong.
On March 11, 2010, Chen issued a cheque for HK$68.95 million out of the HK$73.7 million in favour of FKC.
Knowing Chen’s background and the allegations of fraud relating to the acquisition, Wu transferred the HK$68.95 million to the bank account of Ye on the following day without complying with the Law Society of Hong Kong’s Practice Direction to conduct enhanced due diligence when handling the “U-Turn” transaction as in the instant case on anti-money laundering.
The court also heard that between March 12, 2010 and October 26, 2011, Ye dealt with the above HK$68.95 million and a further HK$161 million, totalling about HK$230 million, deposited into her bank account, knowing or having reasonable grounds to believe that the sums of money were crime proceeds.
The prosecution was today represented by prosecuting counsel Neil Mitchell and Public Prosecutor William Cheng, assisted by ICAC officer Phoebe Tsang.
Wu Wing-kit, 57, solicitor and partner of Fred Kan & Co. (FKC), was found guilty of one count of dealing with property known or reasonably believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organised and Serious Crim es Ordinance.
Co-defendant Ye Fang, 43, housewife and wife of Chen Keen, a former executive director of listed Natural Dairy (NZ) Holdings Limited (NDNZ), was convicted of a similar offence.
Judge Eddie Yip Chor-man adjourned the case to this Friday (August 29) for mitigation, and remanded the defendants in the custody of the Correctional Services Department.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, NDNZ, formerly known as China Jin Hui Mining Corporation Limited, was listed on the Main Board of the Stock Exchange of Hong Kong (SEHK).
Between December 2009 and February 2010, NDNZ raised HK$790 million through the issue of convertible notes for acquiring 22 dairy farms in New Zealand from May Hao, owner of UBNZ Trustee Limited (UBTL). Subsequently, the acquisition was queried by the SE HK after receiving a complaint concerning allegations of fraud.
Out of the HK$790 million, HK$693 million (NZ$125 million) was remitted to a lawyer acting for NDNZ in New Zealand and NZ$51.6 million of that money was paid to UBTL in February 2010. Hao then remitted HK$73.7 million (NZ$13.7 million) back to a company owned by Chen in Hong Kong.
On March 11, 2010, Chen issued a cheque for HK$68.95 million out of the HK$73.7 million in favour of FKC.
Knowing Chen’s background and the allegations of fraud relating to the acquisition, Wu transferred the HK$68.95 million to the bank account of Ye on the following day without complying with the Law Society of Hong Kong’s Practice Direction to conduct enhanced due diligence when handling the “U-Turn” transaction as in the instant case on anti-money laundering.
The court also heard that between March 12, 2010 and October 26, 2011, Ye dealt with the above HK$68.95 million and a further HK$161 million, totalling about HK$230 million, deposited into her bank account, knowing or having reasonable grounds to believe that the sums of money were crime proceeds.
The prosecution was today represented by prosecuting counsel Neil Mitchell and Public Prosecutor William Cheng, assisted by ICAC officer Phoebe Tsang.