Merchant guilty of using false power of attorney to defraud $18m mortgage loans
2020-4-9
A merchant, charged by the ICAC, was today (April 9) convicted at the District Court of using copies of a false power of attorney purportedly signed by his mother and younger brother to defraud five licensed money lenders of mortgage loans amounting to over $18 million.
Chan Kam-hung, 62, was found guilty of five charges of using a copy of a false instrument, contrary to Section 74 of the Crimes Ordinance.
Judge Katherine Lo Kit-yee remanded the defendant in the custody of the Correctional Services Department until April 22 for sentence.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, the defendant lived with his mother and younger brother (the duo) in a property in Kowloon Tong. Since 2001, the property was jointly owned by the duo.
In December 2014, the defendant engaged a mortgage intermediary to find money lenders for loan applications by pledging the property.
Copies of a power of attorney purportedly signed by the duo to nominate the defendant as their lawful attorney to deal with the property, including mortgaging, charging and pledging, were furnished to support the applications.
Believing that they were copies of a true and accurate power of attorney, four licensed money lenders, namely H&R Capital (International) Limited, Sky Credit Limited, J & E Finance Company Limited and KP Financial Services Limited, approved the defendant’s loan applications.
The court heard that between December 2014 and May 2015, the four licensed money lenders released five mortgage loans totalling over $10 million to the defendant.
By pledging the property, the defendant further obtained two loans totalling $8.5 million from another licensed money lender, Freeway Finance Company Limited (Freeway). Part of the sums was used to settle the defendant’s previous loans from two of the abovementioned money lenders.
The court heard that the duo had no knowledge of the power of attorney, had not signed on it, and had never authorised the defendant to obtain any mortgage loan by pledging their property.
As at September 2018, the defendant had defaulted repayment, including principal and interest, to Freeway totalling over $10 million, the court heard.
The five licensed money lenders had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Dr Alain Sham, assisted by ICAC officer Ken Yip.
Chan Kam-hung, 62, was found guilty of five charges of using a copy of a false instrument, contrary to Section 74 of the Crimes Ordinance.
Judge Katherine Lo Kit-yee remanded the defendant in the custody of the Correctional Services Department until April 22 for sentence.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, the defendant lived with his mother and younger brother (the duo) in a property in Kowloon Tong. Since 2001, the property was jointly owned by the duo.
In December 2014, the defendant engaged a mortgage intermediary to find money lenders for loan applications by pledging the property.
Copies of a power of attorney purportedly signed by the duo to nominate the defendant as their lawful attorney to deal with the property, including mortgaging, charging and pledging, were furnished to support the applications.
Believing that they were copies of a true and accurate power of attorney, four licensed money lenders, namely H&R Capital (International) Limited, Sky Credit Limited, J & E Finance Company Limited and KP Financial Services Limited, approved the defendant’s loan applications.
The court heard that between December 2014 and May 2015, the four licensed money lenders released five mortgage loans totalling over $10 million to the defendant.
By pledging the property, the defendant further obtained two loans totalling $8.5 million from another licensed money lender, Freeway Finance Company Limited (Freeway). Part of the sums was used to settle the defendant’s previous loans from two of the abovementioned money lenders.
The court heard that the duo had no knowledge of the power of attorney, had not signed on it, and had never authorised the defendant to obtain any mortgage loan by pledging their property.
As at September 2018, the defendant had defaulted repayment, including principal and interest, to Freeway totalling over $10 million, the court heard.
The five licensed money lenders had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Dr Alain Sham, assisted by ICAC officer Ken Yip.