Trio has jail terms increased up to three years after review of sentences
2015-12-17
Two former senior executives of a listed company and an accountant, charged by the ICAC, were today (Thursday) ordered by the Court of Appeal (CA) to serve one year to three years more in jail for bribery and fraud in the acquisition of a Mainland plantation project at $500 million in the wake of a review of their sentences.
Choy Ping-fai, 52, former president of China Environmental Resources Group Limited (CERG) (formerly known as Benefun International Holdings Limited (Benefun)) and sole owner of Blackpool Stadium Limited (Blackpool), had his jail term increased from five years to seven years and nine months.
Lo King-fat, 62, former executive director and company secretary of Benefun; and Ip Wing-lun, 47, certified public accountant, had their jail terms of three years increased to six years and four years respectively.
Choy, Lo and Ip were jailed in October 2014 after they were convicted by a jury at the Court of First Instance of the charges. Choy and Ip were found guilty of one count of conspiracy to offer advantages to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance, while Choy and Lo were convicted of one count of conspiracy to defraud, contrary to Common Law.
The Department of Justice (DoJ) subsequently made an application for a review of sentences imposed on the defendants.
The application was heard by Mr Justice Michael Lunn, Vice President of the CA, Mr Justice Andrew Macrae and Mr Justice Derek Pang Wai-cheong, both Justices of Appeal of the CA, last month.
In a written judgment handed down today, the CA allowed the DoJ’s application, and ruled that the jail sentences imposed on the defendants were manifestly inadequate. The CA increased their jail terms on the basis of their roles in the commission of the offences.
Meanwhile, the CA today also handed down its reasons for dismissing Ip’s appeal against conviction after it did not consider that there was a failure properly to put the defence case before the jury so as to deprive him of a fair trial.
The CA heard that at the material time, Benefun, a company listed on the Stock Exchange of Hong Kong Limited (SEHK), engaged in apparel business. Benefun, who was operated with Tan Sim-chew as chairman, was later renamed CERG.
Blackpool was a British Virgin Islands-registered company owned by Choy, while Ample Rich Enterprises Limited (Ample Rich), a wholly owned subsidiary of Blackpool, held a plantation project on the Mainland.
Between January 1, 2008 and May 14, 2010, Choy and Ip conspired together and with a then accounting staff of Benefun to offer Tan advantages being Benefun’s promissory note to the value of $100 million and the payment of $80 million for the acquisition of Tan’s shareholding in Benefun.
In return, Tan caused Benefun to acquire Ample Rich for the plantation project in Xinjiang, caused Benefun to commit to pay a purchase price of $500 million, and caused change to the constitution of Benefun’s board of directors.
The CA also heard that Lo and Choy conspired together and with Tan, Fu Zi-cong, a then executive director of Benefun, and the then accounting staff of Benefun to defraud the SEHK, Benefun, its existing shareholders and potential investors in the course of the acquisition of Ample Rich for the plantation project from Blackpool by concealing their corrupt scheme which was set out in a written agreement with Tan.
Tan and Fu are being wanted by the ICAC for their alleged roles in the case, and warrants have been issued for their arrest.
Choy Ping-fai, 52, former president of China Environmental Resources Group Limited (CERG) (formerly known as Benefun International Holdings Limited (Benefun)) and sole owner of Blackpool Stadium Limited (Blackpool), had his jail term increased from five years to seven years and nine months.
Lo King-fat, 62, former executive director and company secretary of Benefun; and Ip Wing-lun, 47, certified public accountant, had their jail terms of three years increased to six years and four years respectively.
Choy, Lo and Ip were jailed in October 2014 after they were convicted by a jury at the Court of First Instance of the charges. Choy and Ip were found guilty of one count of conspiracy to offer advantages to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance, while Choy and Lo were convicted of one count of conspiracy to defraud, contrary to Common Law.
The Department of Justice (DoJ) subsequently made an application for a review of sentences imposed on the defendants.
The application was heard by Mr Justice Michael Lunn, Vice President of the CA, Mr Justice Andrew Macrae and Mr Justice Derek Pang Wai-cheong, both Justices of Appeal of the CA, last month.
In a written judgment handed down today, the CA allowed the DoJ’s application, and ruled that the jail sentences imposed on the defendants were manifestly inadequate. The CA increased their jail terms on the basis of their roles in the commission of the offences.
Meanwhile, the CA today also handed down its reasons for dismissing Ip’s appeal against conviction after it did not consider that there was a failure properly to put the defence case before the jury so as to deprive him of a fair trial.
The CA heard that at the material time, Benefun, a company listed on the Stock Exchange of Hong Kong Limited (SEHK), engaged in apparel business. Benefun, who was operated with Tan Sim-chew as chairman, was later renamed CERG.
Blackpool was a British Virgin Islands-registered company owned by Choy, while Ample Rich Enterprises Limited (Ample Rich), a wholly owned subsidiary of Blackpool, held a plantation project on the Mainland.
Between January 1, 2008 and May 14, 2010, Choy and Ip conspired together and with a then accounting staff of Benefun to offer Tan advantages being Benefun’s promissory note to the value of $100 million and the payment of $80 million for the acquisition of Tan’s shareholding in Benefun.
In return, Tan caused Benefun to acquire Ample Rich for the plantation project in Xinjiang, caused Benefun to commit to pay a purchase price of $500 million, and caused change to the constitution of Benefun’s board of directors.
The CA also heard that Lo and Choy conspired together and with Tan, Fu Zi-cong, a then executive director of Benefun, and the then accounting staff of Benefun to defraud the SEHK, Benefun, its existing shareholders and potential investors in the course of the acquisition of Ample Rich for the plantation project from Blackpool by concealing their corrupt scheme which was set out in a written agreement with Tan.
Tan and Fu are being wanted by the ICAC for their alleged roles in the case, and warrants have been issued for their arrest.