Ex-employee of renovation contractor guilty of $350,000 works fraud
2021-8-6
A former employee of a renovation contractor, charged by the ICAC, was today (August 6) convicted of conspiracy to defraud an art finance service provider over reinstatement works worth $350,000.
Johnson Kwok Cheng-son, 45, former employee of Bigred Design Company (Bigred), was found guilty of one count of conspiracy to defraud, contrary to Common Law.
Co-defendant Lam Cheuk-ho, 33, former event project and operation manager of China Art Financial Holdings Limited (China Art Financial), earlier pleaded guilty to the charge.
After delivering her verdict, Miss Lily Wong Sze-lai, sitting as Deputy District Judge, adjourned the case to August 20 for sentence. The defendants were remanded in the custody of the Correctional Services Department.
The court heard that 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. A few months later, China Art Financial decided to abort the renovation project and disputed the termination fee with Bigred.
Lam was instructed by China Art Financial to look for another contractor to reinstate the half renovated showroom before terminating the leasing contract. Bigred wanted to bid for the reinstatement project but was not allowed to do so.
The court heard that Lam and Kwok then conspired together to defraud Artfund by dishonestly using a small renovation project contractor owned by an associate of Kwok’s brother as a vehicle to bid for the reinstatement project.
On August 8, 2018, Lam submitted six quotations to China Art Financial for the reinstatement project. One of the quotations at $368,000, which was personally handled by Kwok, was from the small renovation project contractor.
A few days later, Lam asked Kwok to lower his bid by $20,000 to $350,000 as the quoting price of another bidder was very close to that of the small renovation project contractor’s.
Kwok agreed to lower the bidding price and the reinstatement project was eventually awarded to the small renovation project contractor at $350,000. But the project was in fact conducted by Bigred.
Had China Art Financial known that the reinstatement project was conducted by Bigred, it would not have awarded the project to the small renovation project contractor, the court heard.
China Art Financial had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Newman Wong, assisted by ICAC officer Rosita Lee.
Johnson Kwok Cheng-son, 45, former employee of Bigred Design Company (Bigred), was found guilty of one count of conspiracy to defraud, contrary to Common Law.
Co-defendant Lam Cheuk-ho, 33, former event project and operation manager of China Art Financial Holdings Limited (China Art Financial), earlier pleaded guilty to the charge.
After delivering her verdict, Miss Lily Wong Sze-lai, sitting as Deputy District Judge, adjourned the case to August 20 for sentence. The defendants were remanded in the custody of the Correctional Services Department.
The court heard that 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. A few months later, China Art Financial decided to abort the renovation project and disputed the termination fee with Bigred.
Lam was instructed by China Art Financial to look for another contractor to reinstate the half renovated showroom before terminating the leasing contract. Bigred wanted to bid for the reinstatement project but was not allowed to do so.
The court heard that Lam and Kwok then conspired together to defraud Artfund by dishonestly using a small renovation project contractor owned by an associate of Kwok’s brother as a vehicle to bid for the reinstatement project.
On August 8, 2018, Lam submitted six quotations to China Art Financial for the reinstatement project. One of the quotations at $368,000, which was personally handled by Kwok, was from the small renovation project contractor.
A few days later, Lam asked Kwok to lower his bid by $20,000 to $350,000 as the quoting price of another bidder was very close to that of the small renovation project contractor’s.
Kwok agreed to lower the bidding price and the reinstatement project was eventually awarded to the small renovation project contractor at $350,000. But the project was in fact conducted by Bigred.
Had China Art Financial known that the reinstatement project was conducted by Bigred, it would not have awarded the project to the small renovation project contractor, the court heard.
China Art Financial had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Newman Wong, assisted by ICAC officer Rosita Lee.