Two intermediaries charged by ICAC jailed for bribing bank manager over account opening
2022-12-14
Two intermediaries, charged by the ICAC, were today (December 14) respectively sentenced to 12 and four months’ imprisonment after admitting at the District Court that they had offered bribes to a bank manager for assisting non-domestic clients to open personal and corporate accounts with three local banks, and used copies of false instruments to falsely represent that the clients were in Hong Kong when they made account opening applications.
Chen Baicai, 26, business consultant of Hongkong Hechuang Business Secretary Limited (HKHBS), received a jail term of 12 months. He pleaded guilty to five charges – three of offering an advantage to an agent and two of conspiracy for an agent to accept advantages, contrary to Sections 9(1)(a) and 9(2)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance. Three similar charges against Chen were left on file at the District Court.
Ke Yingying, 36, operator of Hong Kong Chiying Consulting Co., Limited (HKCC), was jailed for four months. She pleaded guilty to one count of conspiracy to use copies of false instruments, contrary to Sections 74 and 159A of the Crimes Ordinance.
In sentencing, Deputy District Judge Tony Li said the case involved serious offences. He reprimanded the two defendants as their misdeeds had jeopardised the banking regulatory and supervisory regime and the immigration control mechanism.
The offences took place between February 2020 and March 2021. At the material time, HKHBS and HKCC were intermediary companies proving secretarial services to clients. Chen was a business consultant of HKHBS and Ke was an operator of HKCC. The duo came to know a senior relationship manager of BEA who was responsible for opening accounts for clients.
The court heard that in late 2019, Chen told the manager that he could refer clients to BEA for opening accounts and the latter would be rewarded $3,000 to $4,000 for his assistance in each successful application. Afterwards, Chen sought the manager’s assistance in opening a corporate account for a client and paid $12,000 to the manager. He subsequently further asked the manager to open a personal account for another client in return for a reward between $10,000 and $15,000.
BEA required corporate account applicants to attend its branches in person for due diligence purpose. However, Ke conspired with the manager to submit to BEA eight copies of false landing slips purportedly issued by the Immigration Department to falsely represent that eight applicants were in Hong Kong when the applications were made. ICAC inquiries revealed that those applicants had not visited Hong Kong at the material time.
Between February and April 2020, Chen further offered three bribes of $5,000 to $10,000 or of an unspecified amount to two employees of The Hongkong and Shanghai Banking Corporation Limited (HSBC) and an employee of Hang Seng Bank Limited (Hang Seng Bank) for opening accounts for clients to be referred by Chen. The three bank employees declined Chen’s offers immediately and reported the matter to their employers.
BEA, HSBC and Hang Seng Bank had rendered full assistance to the ICAC during its investigation into the case.
Lai Chee-wai, 39, former senior relationship manager of BEA was also charged by the ICAC with bribery for his role in the scam. The defendant did not enter plea today and had case adjourned to August 18, 2023 for mention.
In order to assist the banking industry in strengthening its corruption prevention capabilities, the ICAC had collaborated with the industry to produce a practical guide. The Commission will continue to join hands with the industry to promote anti-corruption messages and provide integrity training to banking practitioners. Members of the public should report to the ICAC immediately if corruption is suspected.
Corruption Prevention Guide for banking industry: cpas.icac.hk/EN/Info/Lib_List?cate_id=3&id=230
Dedicated webpage promoting integrity in the banking industry: https://hkbedc.icac.hk/en/sector_industry/banking_and_finance
The prosecution was today represented by Prosecuting Counsel Jason Lau, assisted by ICAC officers Gary Li and Rachel Wong.
Chen Baicai, 26, business consultant of Hongkong Hechuang Business Secretary Limited (HKHBS), received a jail term of 12 months. He pleaded guilty to five charges – three of offering an advantage to an agent and two of conspiracy for an agent to accept advantages, contrary to Sections 9(1)(a) and 9(2)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance. Three similar charges against Chen were left on file at the District Court.
Ke Yingying, 36, operator of Hong Kong Chiying Consulting Co., Limited (HKCC), was jailed for four months. She pleaded guilty to one count of conspiracy to use copies of false instruments, contrary to Sections 74 and 159A of the Crimes Ordinance.
In sentencing, Deputy District Judge Tony Li said the case involved serious offences. He reprimanded the two defendants as their misdeeds had jeopardised the banking regulatory and supervisory regime and the immigration control mechanism.
The offences took place between February 2020 and March 2021. At the material time, HKHBS and HKCC were intermediary companies proving secretarial services to clients. Chen was a business consultant of HKHBS and Ke was an operator of HKCC. The duo came to know a senior relationship manager of BEA who was responsible for opening accounts for clients.
The court heard that in late 2019, Chen told the manager that he could refer clients to BEA for opening accounts and the latter would be rewarded $3,000 to $4,000 for his assistance in each successful application. Afterwards, Chen sought the manager’s assistance in opening a corporate account for a client and paid $12,000 to the manager. He subsequently further asked the manager to open a personal account for another client in return for a reward between $10,000 and $15,000.
BEA required corporate account applicants to attend its branches in person for due diligence purpose. However, Ke conspired with the manager to submit to BEA eight copies of false landing slips purportedly issued by the Immigration Department to falsely represent that eight applicants were in Hong Kong when the applications were made. ICAC inquiries revealed that those applicants had not visited Hong Kong at the material time.
Between February and April 2020, Chen further offered three bribes of $5,000 to $10,000 or of an unspecified amount to two employees of The Hongkong and Shanghai Banking Corporation Limited (HSBC) and an employee of Hang Seng Bank Limited (Hang Seng Bank) for opening accounts for clients to be referred by Chen. The three bank employees declined Chen’s offers immediately and reported the matter to their employers.
BEA, HSBC and Hang Seng Bank had rendered full assistance to the ICAC during its investigation into the case.
Lai Chee-wai, 39, former senior relationship manager of BEA was also charged by the ICAC with bribery for his role in the scam. The defendant did not enter plea today and had case adjourned to August 18, 2023 for mention.
In order to assist the banking industry in strengthening its corruption prevention capabilities, the ICAC had collaborated with the industry to produce a practical guide. The Commission will continue to join hands with the industry to promote anti-corruption messages and provide integrity training to banking practitioners. Members of the public should report to the ICAC immediately if corruption is suspected.
Corruption Prevention Guide for banking industry: cpas.icac.hk/EN/Info/Lib_List?cate_id=3&id=230
Dedicated webpage promoting integrity in the banking industry: https://hkbedc.icac.hk/en/sector_industry/banking_and_finance
The prosecution was today represented by Prosecuting Counsel Jason Lau, assisted by ICAC officers Gary Li and Rachel Wong.