Five charged by ICAC for defrauding investors of JPY400m and money laundering
2022-1-25
The ICAC today (January 25) charges three former bank managers and a self-employed financial consultant with multiple offences, including conspiring with four foreign nationals to deceive Japanese investors into investing over JPY400 million (about HK$28.4 million) in a number of companies which claimed to take part in investment projects in Africa by falsely representing that the bank held asset of at least 3.3 billion euros (about HK$25.5 billion) on behalf of those companies; and by using false bank documents. A co-defendant is charged with conspiracy to deal with crime proceeds totalling about HK$55 million.
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 pressing a total of eight charges against the defendants.
Four of the defendants, Woo Man-ho, 34; Chan Tak-ching, 34; and Leung Ho-yin, 35, all former relationship managers of Standard Chartered Bank (Hong Kong) Limited (Standard Chartered Bank); and Law Man-fai, 48, self-employed financial consultant; face seven counts of conspiracy to defraud, contrary to Common Law.
Co-defendant Catherine Kum Kit-ching, 53, manager of ADF Capital Limited (ADF), faces one count of conspiracy to deal with property known or believed to represent proceeds of indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance and Section 159A of the Crimes Ordinance.
All defendants were released on ICAC bail, pending their court appearance in the Eastern Magistrates’ Courts on Thursday (January 27) for mention.
At the material time, Woo, Chan and Leung were relationship managers of Standard Chartered Bank. The bank would issue documents to confirm the balance of a client’s account held with the bank upon request, but the trio were not authorised to sign and issue those documents. Kum was a manager of ADF which held accounts with Standard Chartered Bank, while Law was a self-employed financial consultant.
The alleged offences took place between January 2015 and January 2019. During the period, the defendants had allegedly conspired with four foreign nationals to defraud various Japanese investors to invest in ADF and a number of companies by using false documents, namely proof of fund letters and corporate refund promissory notes (CRPNs), purportedly issued by Standard Chartered Bank and signed by Woo and Chan.
The four foreign nationals involved were a Zambian man and a Korean man, both shareholders-cum-directors of ADF; a Thai man, an account holder of Standard Chartered Bank and Chan’s client; and a Japanese woman, who was a company director.
Four of the charges allege that Woo conspired with Chan, Law, the Thai man, the Zambian man and the Japanese woman to defraud investors by falsely representing that (i) Standard Chartered Bank was holding on behalf of the Thai man asset of 3.3 billion euros (about HK$25.5 billion), which was assigned to ADF to finance and execute economic and humanitarian projects in Africa, (ii) the bank confirmed that a company of the Zambian man had funds of US$1.5 billion (about HK$11.6 billion) available for investments in Africa, and (iii) that company had asset of US$2 billion (about HK$15.5 billion) in the account held with the bank.
ICAC inquiries revealed that Standard Chartered Bank had never held the aforesaid asset on behalf of the Thai man, while the Zambian man’s company had never hold any bank account with the bank. The above false representations involved issuance of false proof of fund letters.
Three other charges allege that Woo and Chan conspired with Leung, Law, the Zambian man, the Korean man and the Japanese woman to defraud investors by falsely representing that Standard Chartered Bank was the guarantor of ADF which undertook to pay the relevant investors by way of eight CRPNs.
It is alleged that the eight CRPNs involved promised returns totalling over US$207 million (about HK$1.6 billion). As a result of the false representations, various Japanese investors were deceived into making investments totalling at least JPY400 million (about HK$28.4 million) to ADF and a number of companies involved in this case.
The remaining charge alleges that Kum conspired together with the Zambian man and the Korean man to deal with a total sum of over HK$7.3 million and over US$6.1 million (about HK$47.5 million) in an account in another bank, knowing or having reasonable grounds to believe that the sum, in whole or in part, directly or indirectly represented the proceeds of an indictable offence.
Standard Chartered Bank has rendered full assistance to the ICAC during its investigation into the case. As the investigation is continuing, the ICAC does not rule out further law enforcement actions.
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 pressing a total of eight charges against the defendants.
Four of the defendants, Woo Man-ho, 34; Chan Tak-ching, 34; and Leung Ho-yin, 35, all former relationship managers of Standard Chartered Bank (Hong Kong) Limited (Standard Chartered Bank); and Law Man-fai, 48, self-employed financial consultant; face seven counts of conspiracy to defraud, contrary to Common Law.
Co-defendant Catherine Kum Kit-ching, 53, manager of ADF Capital Limited (ADF), faces one count of conspiracy to deal with property known or believed to represent proceeds of indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance and Section 159A of the Crimes Ordinance.
All defendants were released on ICAC bail, pending their court appearance in the Eastern Magistrates’ Courts on Thursday (January 27) for mention.
At the material time, Woo, Chan and Leung were relationship managers of Standard Chartered Bank. The bank would issue documents to confirm the balance of a client’s account held with the bank upon request, but the trio were not authorised to sign and issue those documents. Kum was a manager of ADF which held accounts with Standard Chartered Bank, while Law was a self-employed financial consultant.
The alleged offences took place between January 2015 and January 2019. During the period, the defendants had allegedly conspired with four foreign nationals to defraud various Japanese investors to invest in ADF and a number of companies by using false documents, namely proof of fund letters and corporate refund promissory notes (CRPNs), purportedly issued by Standard Chartered Bank and signed by Woo and Chan.
The four foreign nationals involved were a Zambian man and a Korean man, both shareholders-cum-directors of ADF; a Thai man, an account holder of Standard Chartered Bank and Chan’s client; and a Japanese woman, who was a company director.
Four of the charges allege that Woo conspired with Chan, Law, the Thai man, the Zambian man and the Japanese woman to defraud investors by falsely representing that (i) Standard Chartered Bank was holding on behalf of the Thai man asset of 3.3 billion euros (about HK$25.5 billion), which was assigned to ADF to finance and execute economic and humanitarian projects in Africa, (ii) the bank confirmed that a company of the Zambian man had funds of US$1.5 billion (about HK$11.6 billion) available for investments in Africa, and (iii) that company had asset of US$2 billion (about HK$15.5 billion) in the account held with the bank.
ICAC inquiries revealed that Standard Chartered Bank had never held the aforesaid asset on behalf of the Thai man, while the Zambian man’s company had never hold any bank account with the bank. The above false representations involved issuance of false proof of fund letters.
Three other charges allege that Woo and Chan conspired with Leung, Law, the Zambian man, the Korean man and the Japanese woman to defraud investors by falsely representing that Standard Chartered Bank was the guarantor of ADF which undertook to pay the relevant investors by way of eight CRPNs.
It is alleged that the eight CRPNs involved promised returns totalling over US$207 million (about HK$1.6 billion). As a result of the false representations, various Japanese investors were deceived into making investments totalling at least JPY400 million (about HK$28.4 million) to ADF and a number of companies involved in this case.
The remaining charge alleges that Kum conspired together with the Zambian man and the Korean man to deal with a total sum of over HK$7.3 million and over US$6.1 million (about HK$47.5 million) in an account in another bank, knowing or having reasonable grounds to believe that the sum, in whole or in part, directly or indirectly represented the proceeds of an indictable offence.
Standard Chartered Bank has rendered full assistance to the ICAC during its investigation into the case. As the investigation is continuing, the ICAC does not rule out further law enforcement actions.