Trio charged by ICAC with $3.5m fraud over floor maintenance works of shopping malls and money laundering
2021-11-18
A former manager of a cleaning company and two operators of a cleaning subcontractor were charged by the ICAC yesterday (November 17) with deceiving the cleaning company of service fees totalling about $3.5 million in relation to floor maintenance works of four shopping malls and dealing with crime proceeds in a total sum of $3 million derived from the scam.
The ICAC investigation arose from a corruption complaint. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charges be laid against the trio.
The defendants are Chan Pui-yin, 52, former operation manager of Tsang Lik Services Limited (Tsang Lik); and Lam Chi-wah, 46, and Chu Tak-wing, 47, both operators of Chun Wah Services Limited (Chun Wah).
Chan and Lam jointly face two counts of fraud, contrary to Section 16A of the Theft Ordinance. Lam and Chu jointly face one count of conspiracy to deal with property known or reasonably believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance and Section 159A of the Crimes Ordinance.
The defendants were released on ICAC bail, pending their appearance in the Eastern Magistrates’ Courts on Friday (November 19) for the case to be transferred to the District Court for plea.
Tsang Lik is a cleaning company providing services to residential estates, offices and shopping malls managed by Kai Shing Management Services Limited (Kai Shing), a sister company of Tsang Lik.
At the material time, Chan was an operation manager of Tsang Lik. He was responsible for overseeing the cleaning contracts of four shopping malls managed by Kai Shing. He would also recommend subcontractors to Tsang Lik for performing floor maintenance works.
Through the introduction of Chan, Chun Wah became a cleaning subcontractor of Tsang Lik in 2011. Lam and Chu were co-operators of Chun Wah and the authorised signatories of a bank account of the company.
Two of the charges allege that between January 19, 2015 and July 24, 2017, Chan and Lam falsely represented that maintenance works of “refurbishment of floor slab marble” for the aforesaid four shopping malls had been performed by Chun Wah, and with intent to defraud, induced Tsang Lik and Kai Shing to pay fees relating to those maintenance works, which resulted in benefit to Chan and Lam, and/or in prejudice to Tsang Lik and Kai Shing.
It is alleged that the service fees involved amounted to over $3.5million.
The remaining charge alleges that between January 19, 2015 and June 29, 2017, Lam and Chu conspired together to deal with a total sum of over $3 million in the bank account of Chun Wah, knowing or having reasonable grounds to believe that the sum in whole or in part, directly or indirectly represented proceeds of indictable offence.
Kai Shing and Tsang Lik have rendered full assistance to the ICAC during its investigation into the case.
The ICAC investigation arose from a corruption complaint. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charges be laid against the trio.
The defendants are Chan Pui-yin, 52, former operation manager of Tsang Lik Services Limited (Tsang Lik); and Lam Chi-wah, 46, and Chu Tak-wing, 47, both operators of Chun Wah Services Limited (Chun Wah).
Chan and Lam jointly face two counts of fraud, contrary to Section 16A of the Theft Ordinance. Lam and Chu jointly face one count of conspiracy to deal with property known or reasonably believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance and Section 159A of the Crimes Ordinance.
The defendants were released on ICAC bail, pending their appearance in the Eastern Magistrates’ Courts on Friday (November 19) for the case to be transferred to the District Court for plea.
Tsang Lik is a cleaning company providing services to residential estates, offices and shopping malls managed by Kai Shing Management Services Limited (Kai Shing), a sister company of Tsang Lik.
At the material time, Chan was an operation manager of Tsang Lik. He was responsible for overseeing the cleaning contracts of four shopping malls managed by Kai Shing. He would also recommend subcontractors to Tsang Lik for performing floor maintenance works.
Through the introduction of Chan, Chun Wah became a cleaning subcontractor of Tsang Lik in 2011. Lam and Chu were co-operators of Chun Wah and the authorised signatories of a bank account of the company.
Two of the charges allege that between January 19, 2015 and July 24, 2017, Chan and Lam falsely represented that maintenance works of “refurbishment of floor slab marble” for the aforesaid four shopping malls had been performed by Chun Wah, and with intent to defraud, induced Tsang Lik and Kai Shing to pay fees relating to those maintenance works, which resulted in benefit to Chan and Lam, and/or in prejudice to Tsang Lik and Kai Shing.
It is alleged that the service fees involved amounted to over $3.5million.
The remaining charge alleges that between January 19, 2015 and June 29, 2017, Lam and Chu conspired together to deal with a total sum of over $3 million in the bank account of Chun Wah, knowing or having reasonable grounds to believe that the sum in whole or in part, directly or indirectly represented proceeds of indictable offence.
Kai Shing and Tsang Lik have rendered full assistance to the ICAC during its investigation into the case.