Ex-director of watch component manufacturer guilty of fraud over $69m business diversion
2020-7-29
A former director of a watch component manufacturer, charged by the ICAC, was today (July 29) convicted at the District Court of fraud for diverting business of over $69 million to a trading company co-owned by him through fraudulent means.
Tse Tin, 61, former director of Tak Ming Metal Ware Factory Company Limited (Tak Ming), was found guilty of one count of fraud, contrary to Section 16A of the Theft Ordinance.
Judge Mr Ernest Lin Kam-hung adjourned the case to August 18 for sentence, pending a background report. The defendant was remanded in the custody of the Correctional Services Department.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offence.
The court heard that at the material time, the defendant was a director-cum-shareholder of Tak Ming, a manufacturer and supplier of metal watch bracelets. Sunciti Manufactures Limited (SML), a subsidiary of Citizen Watch Company Limited (Citizen), had been a customer of Tak Ming since 2003.
In April 2008, an associate of the defendant who had worked at a factory of Citizen set up Real-tech Partners Company Limited (Real-tech) and became its sole director. Shares of Real-tech were equally held by the sole-director and Pacific Link Investment Limited (Pacific Link), a company co-owned by the defendant and his wife.
In mid-2008, the defendant, accompanied by the Real-tech sole director, suggested senior executives of SML to place purchase orders for metal watch bracelets with Real-tech, saying that Real-tech could supply SML with products manufactured by Tak Ming at the same price with better logistics arrangements.
Believing that Real-tech was an associated company of Tak Ming, the SML senior executives agreed to the defendant’s suggestion. SML subsequently placed 967 orders with Real-tech for metal watch bracelets with a total invoiced amount of over $69 million between August 2008 and September 2016.
In fact, products supplied by Real-tech to SML were sourced from Tak Ming at over $66 million, and the selling prices were marked up by about five per cent. Between 2011 and 2017, Real-tech made nine annul payments, totalling .1 million to Pacific Link as the defendant’s share of profit.
Tak Ming, SML and Citizen had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Marco Li, assisted by ICAC officer Steven Gaw.
Tse Tin, 61, former director of Tak Ming Metal Ware Factory Company Limited (Tak Ming), was found guilty of one count of fraud, contrary to Section 16A of the Theft Ordinance.
Judge Mr Ernest Lin Kam-hung adjourned the case to August 18 for sentence, pending a background report. The defendant was remanded in the custody of the Correctional Services Department.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offence.
The court heard that at the material time, the defendant was a director-cum-shareholder of Tak Ming, a manufacturer and supplier of metal watch bracelets. Sunciti Manufactures Limited (SML), a subsidiary of Citizen Watch Company Limited (Citizen), had been a customer of Tak Ming since 2003.
In April 2008, an associate of the defendant who had worked at a factory of Citizen set up Real-tech Partners Company Limited (Real-tech) and became its sole director. Shares of Real-tech were equally held by the sole-director and Pacific Link Investment Limited (Pacific Link), a company co-owned by the defendant and his wife.
In mid-2008, the defendant, accompanied by the Real-tech sole director, suggested senior executives of SML to place purchase orders for metal watch bracelets with Real-tech, saying that Real-tech could supply SML with products manufactured by Tak Ming at the same price with better logistics arrangements.
Believing that Real-tech was an associated company of Tak Ming, the SML senior executives agreed to the defendant’s suggestion. SML subsequently placed 967 orders with Real-tech for metal watch bracelets with a total invoiced amount of over $69 million between August 2008 and September 2016.
In fact, products supplied by Real-tech to SML were sourced from Tak Ming at over $66 million, and the selling prices were marked up by about five per cent. Between 2011 and 2017, Real-tech made nine annul payments, totalling .1 million to Pacific Link as the defendant’s share of profit.
Tak Ming, SML and Citizen had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Marco Li, assisted by ICAC officer Steven Gaw.