Ex-manager of media company gets six years and eight months for $19m works orders fraud
2018-3-28
A former facilities manager of a media company, charged by the ICAC, was today (March 28) sentenced to six years and eight months’ imprisonment at the District Court for fraud in relation to the award of over $19 million worth of works orders to a company owned by his father without declaration.
Stephen Lam Wing-on, 40, former facilities manager of Thomson Reuters Hong Kong Limited (TRHK), formerly known as Reuters Hong Kong Limited (RHK), was earlier found guilty of two counts of fraud, contrary to Section 16A of the Theft Ordinance.
In sentencing, Judge Josiah Lam Wai-kuen reprimanded the defendant for abusing his position in RHK and TRHK and taking advantage of the loopholes in their systems.
The judge also said the offences committed by the defendant constituted a breach of trust. He concealed conflicts of interest from RHK and TRHK, which resulted in benefit to him and his family members and prejudice to RHK and TRHK.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that the defendant was employed by RHK in February 2006 as facilities executive. In January 2009, RHK was renamed as TRHK after a merger of related companies. Since then, he had been employed by TRHK as facilities executive. In November 2011, he was promoted to the post of facilities manager.
At the material time, the defendant was responsible for maintaining equipment and facilities of the offices of RHK/TRHK in Hong Kong in good order. He had the authority to award works orders to contractors and service providers for equipment and facilities.
Skytech Engineering & Co. (Skytech) was established in January 2007, with the defendant’s father as its registered proprietor.
The court heard that the defendant induced RHK/TRHK to include and maintain Skytech in the list of approved suppliers for the provision of goods and services, and place purchase orders with Skytech, but he failed to declare to RHK/TRHK his and/or his father’s interests in Skytech.
As a result, payments totalling over $5 million were made by RHK to Skytech on 38 occasions between August 2007 and March 2009 for the provision of goods and services to RHK. The payments received by Skytech resulted in benefit to the defendant and his family members.
Payments totalling over $14.7 million were also made by TRHK to Skytech on 106 other occasions between March 2009 and February 2014 for the provision of goods and services to TRHK. The payments received by Skytech resulted in benefit to the defendant and his family members, the court was told.
TRHK had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Susanna Ku, assisted by ICAC officer Grace Yee.
Stephen Lam Wing-on, 40, former facilities manager of Thomson Reuters Hong Kong Limited (TRHK), formerly known as Reuters Hong Kong Limited (RHK), was earlier found guilty of two counts of fraud, contrary to Section 16A of the Theft Ordinance.
In sentencing, Judge Josiah Lam Wai-kuen reprimanded the defendant for abusing his position in RHK and TRHK and taking advantage of the loopholes in their systems.
The judge also said the offences committed by the defendant constituted a breach of trust. He concealed conflicts of interest from RHK and TRHK, which resulted in benefit to him and his family members and prejudice to RHK and TRHK.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that the defendant was employed by RHK in February 2006 as facilities executive. In January 2009, RHK was renamed as TRHK after a merger of related companies. Since then, he had been employed by TRHK as facilities executive. In November 2011, he was promoted to the post of facilities manager.
At the material time, the defendant was responsible for maintaining equipment and facilities of the offices of RHK/TRHK in Hong Kong in good order. He had the authority to award works orders to contractors and service providers for equipment and facilities.
Skytech Engineering & Co. (Skytech) was established in January 2007, with the defendant’s father as its registered proprietor.
The court heard that the defendant induced RHK/TRHK to include and maintain Skytech in the list of approved suppliers for the provision of goods and services, and place purchase orders with Skytech, but he failed to declare to RHK/TRHK his and/or his father’s interests in Skytech.
As a result, payments totalling over $5 million were made by RHK to Skytech on 38 occasions between August 2007 and March 2009 for the provision of goods and services to RHK. The payments received by Skytech resulted in benefit to the defendant and his family members.
Payments totalling over $14.7 million were also made by TRHK to Skytech on 106 other occasions between March 2009 and February 2014 for the provision of goods and services to TRHK. The payments received by Skytech resulted in benefit to the defendant and his family members, the court was told.
TRHK had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Susanna Ku, assisted by ICAC officer Grace Yee.