Duo jailed for deceiving $2.3m bank loans and laundering crime proceeds
2015-3-10
A director of a printing company and a director of a trading company, charged by the ICAC, were today (Tuesday) sentenced to jail terms up to 20 months at the District Court for deceiving loans totalling over $2.3 million from a bank and laundering those crime proceeds respectively.
Danny Ho Tak-yu, 56, director of Yue On Offset Printing Factory Company Limited (Yue On), received a jail term of 20 months, while Yiu Chi-wai, 43, sole shareholder cum director of Royal Richly Trading Limited (Royal Richly), was jailed for 12 months.
Ho and Yiu earlier pleaded guilty before Judge Eddie Yip Chor-man to 10 counts of fraud and one of dealing with property known or believed to represent proceeds of an indictable offence respectively.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, Ho was one of the directors of Yue On, a family business run by Ho and his family members. Yiu Chi-wai, brother-in-law of Ho, was the sole signatory for the bank account of Royal Richly.
Between October 12 and December 29, 2011, Yue On applied to Wing Hang Bank Limited (Wing Hang Bank) for invoice financing loans on 10 occasions.
Ho falsely represented to Wing Hang Bank that there were genuine business transactions as evidenced in invoices issued by Royal Richly, the court heard.
In fact, no goods had been received by Yue On from Royal Richly. False delivery dates were put on the application forms for those loans, with no other documents to support the transactions, no purchase orders as well as no delivery notes.
With intent to defraud, Ho induced the bank to grant 10 invoice financing loans totalling over $2.3 million to Yue On.
Wing Hang Bank confirmed that they would only advance money under an invoice financing loan if there was a genuine transaction with goods involved.
The court heard that Yiu knew the monies paid into the account of Royal Richly from Wing Hang Bank were the proceeds of the indictable offences of fraud.
Yiu signed the cheques which he knew would be used to withdraw the loans from the account of Royal Richly and pay the debts of Yue On, the court was told.
Wing Hang Bank had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel John Dunn, assisted by ICAC officer Alfred Chan.
Danny Ho Tak-yu, 56, director of Yue On Offset Printing Factory Company Limited (Yue On), received a jail term of 20 months, while Yiu Chi-wai, 43, sole shareholder cum director of Royal Richly Trading Limited (Royal Richly), was jailed for 12 months.
Ho and Yiu earlier pleaded guilty before Judge Eddie Yip Chor-man to 10 counts of fraud and one of dealing with property known or believed to represent proceeds of an indictable offence respectively.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, Ho was one of the directors of Yue On, a family business run by Ho and his family members. Yiu Chi-wai, brother-in-law of Ho, was the sole signatory for the bank account of Royal Richly.
Between October 12 and December 29, 2011, Yue On applied to Wing Hang Bank Limited (Wing Hang Bank) for invoice financing loans on 10 occasions.
Ho falsely represented to Wing Hang Bank that there were genuine business transactions as evidenced in invoices issued by Royal Richly, the court heard.
In fact, no goods had been received by Yue On from Royal Richly. False delivery dates were put on the application forms for those loans, with no other documents to support the transactions, no purchase orders as well as no delivery notes.
With intent to defraud, Ho induced the bank to grant 10 invoice financing loans totalling over $2.3 million to Yue On.
Wing Hang Bank confirmed that they would only advance money under an invoice financing loan if there was a genuine transaction with goods involved.
The court heard that Yiu knew the monies paid into the account of Royal Richly from Wing Hang Bank were the proceeds of the indictable offences of fraud.
Yiu signed the cheques which he knew would be used to withdraw the loans from the account of Royal Richly and pay the debts of Yue On, the court was told.
Wing Hang Bank had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel John Dunn, assisted by ICAC officer Alfred Chan.