Ex-CEO cum director charged with $1.7m fraud and false claim of meal expenses
2014-9-16
A former chief executive officer (CEO) cum director of a catering company has been charged by the ICAC for his alleged role in fraudulently awarding design works contracts worth over $1.7 million to his own firm and using a false invoice to claim meal expenses.
Liu Kit-man, 52, former CEO cum director of Kabushikigaisha Limited (KL), who was charged yesterday (Monday), faced one count of fraud, contrary to Section 16A of the Theft Ordinance; and one of agent using a document with intent to deceive his principal, contrary to Section 9(3) of the Prevention of Bribery Ordinance.
The defendant will appear in the Eastern Magistracy at 9:30 am tomorrow (Wednesday) for transfer to the District Court for plea.
At the material time, the defendant was the CEO cum director of KL, which operated 18 restaurants in Hong Kong.
The fraud charge alleges that between August 4, 2008 and January 11, 2012, the defendant concealed from and failed to disclose to KL of his interests in Hong Kong Infix Design Co. Limited (HKIDC) while he was the CEO cum Director of KL, and was under a du ty to make full disclosure of any existing or potential conflict with KL’s interest.
It is alleged that with intent to defraud, the defendant induced KL to engage HKIDC to provide design works to the 18 restaurants of KL, which resulted in benefit to HKIDC or in prejudice or a substantial risk of prejudice to KL. The contracts for those design works were said to amount to over $1.7 million.
The other charge alleges that on October 26, 2011, the defendant, with intent to deceive KL, used an invoice issued by a restaurant charging for $5,685, which contained a false statement that the meal expenses were incurred in the course of KL’s business affairs.
KL had rendered full assistance to the ICAC during its investigation.
The defendant has been released on ICAC bail, pending his court appearance tomorrow.
Liu Kit-man, 52, former CEO cum director of Kabushikigaisha Limited (KL), who was charged yesterday (Monday), faced one count of fraud, contrary to Section 16A of the Theft Ordinance; and one of agent using a document with intent to deceive his principal, contrary to Section 9(3) of the Prevention of Bribery Ordinance.
The defendant will appear in the Eastern Magistracy at 9:30 am tomorrow (Wednesday) for transfer to the District Court for plea.
At the material time, the defendant was the CEO cum director of KL, which operated 18 restaurants in Hong Kong.
The fraud charge alleges that between August 4, 2008 and January 11, 2012, the defendant concealed from and failed to disclose to KL of his interests in Hong Kong Infix Design Co. Limited (HKIDC) while he was the CEO cum Director of KL, and was under a du ty to make full disclosure of any existing or potential conflict with KL’s interest.
It is alleged that with intent to defraud, the defendant induced KL to engage HKIDC to provide design works to the 18 restaurants of KL, which resulted in benefit to HKIDC or in prejudice or a substantial risk of prejudice to KL. The contracts for those design works were said to amount to over $1.7 million.
The other charge alleges that on October 26, 2011, the defendant, with intent to deceive KL, used an invoice issued by a restaurant charging for $5,685, which contained a false statement that the meal expenses were incurred in the course of KL’s business affairs.
KL had rendered full assistance to the ICAC during its investigation.
The defendant has been released on ICAC bail, pending his court appearance tomorrow.