Ex-manager of an art finance service provider and contractor charged with $350,000 renovation fraud
2020-5-27
A former manager of an art finance service provider and an employee of a renovation contractor have been charged by the ICAC today (May 27) with conspiracy to defraud over reinstatement works worth $350,000.
Lam Cheuk-ho, 32, former event project and operation manager of China Art Financial Holdings Limited (China Art Financial); and Johnson Kwok Cheng-son, 43, employee of Bigred Design Company (Bigred), face a joint charge of conspiracy to defraud, contrary to Common Law.
The defendants will appear at the Eastern Magistrates’ Courts on Friday (May 29) for the case to be transferred to the District Court for plea.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offence.
At the material time, Lam was the event project and operation manager of China Art Financial, which was an art finance service provider engaged in art auction business. Artfund International (Hong Kong) Auction Company Limited (Artfund) was a subsidiary of China Art Financial. Kwok was an employee of Bigred, a renovation contractor of Artfund.
In early 2018, Artfund rented an office at a commercial building in Wan Chai and engaged Bigred to renovate it as a showroom. After the renovation project was aborted in mid-2018, Lam was instructed by China Art Financial to look for another contractor to reinstate the half renovated showroom before termination of the leasing contract.
The charge alleges that between August 1 and October 4, 2018, Lam and Kwok conspired together to defraud Artfund by dishonestly using another contractor as a vehicle to bid for the reinstatement works of the aforesaid showroom for Bigred, and falsely representing that the quotation submitted by that contractor was genuinely competitive and obtained through a competitive process.
The defendants are alleged to have caused Artfund to award the reinstatement works to the contractor at $350,000.
The China Art Financial has rendered full assistance to the ICAC during its investigation into the case.
The defendants have been released on ICAC bail, pending their court appearance on Friday.
Lam Cheuk-ho, 32, former event project and operation manager of China Art Financial Holdings Limited (China Art Financial); and Johnson Kwok Cheng-son, 43, employee of Bigred Design Company (Bigred), face a joint charge of conspiracy to defraud, contrary to Common Law.
The defendants will appear at the Eastern Magistrates’ Courts on Friday (May 29) for the case to be transferred to the District Court for plea.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offence.
At the material time, Lam was the event project and operation manager of China Art Financial, which was an art finance service provider engaged in art auction business. Artfund International (Hong Kong) Auction Company Limited (Artfund) was a subsidiary of China Art Financial. Kwok was an employee of Bigred, a renovation contractor of Artfund.
In early 2018, Artfund rented an office at a commercial building in Wan Chai and engaged Bigred to renovate it as a showroom. After the renovation project was aborted in mid-2018, Lam was instructed by China Art Financial to look for another contractor to reinstate the half renovated showroom before termination of the leasing contract.
The charge alleges that between August 1 and October 4, 2018, Lam and Kwok conspired together to defraud Artfund by dishonestly using another contractor as a vehicle to bid for the reinstatement works of the aforesaid showroom for Bigred, and falsely representing that the quotation submitted by that contractor was genuinely competitive and obtained through a competitive process.
The defendants are alleged to have caused Artfund to award the reinstatement works to the contractor at $350,000.
The China Art Financial has rendered full assistance to the ICAC during its investigation into the case.
The defendants have been released on ICAC bail, pending their court appearance on Friday.