Ex-bank managers jailed for bribery and fraud
2016-2-23
Two former managers of a bank, charged by the ICAC, were today (Tuesday) sentenced to jail terms up to 18 months at the District Court for their respective roles in offering a bribe of $100,000 in relation to referral of clients and deceiving about $117,000 in commissions from the bank.
Chau Hang-yu (formerly known as Aixingero Chat-yung), 30, a former Associate Relationship Manager of the Hongkong and Shanghai Banking Corporation Limited (HSBC), received a jail term of 12 months.
Co-defendant Steve Chow Chun-yin, 32, a former Wealth Management Manager of HSBC, was jailed for 18 months, while another co-defendant Li Lee, 28, also a former Wealth Management Manager of HSBC, had her sentencing adjourned to April 19, 2016.
In sentencing, Judge Frankie Yiu Fun-che said the defendants had seriously breached the trust placed on them and put the financial interest of their clients as well as HSBC’s reputation at risk. The offences committed by them were serious and custodial sentences were inevitable.
Chau earlier pleaded guilty to two counts of fraud, contrary to Section 16A of the Theft Ordinance, while Li admitted seven charges – five of fraud, and two of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance (POBO). Chow was found guilty after trial of three charges – two of fraud and one of offering an advantage to an agent, contrary to Section 9(2)(a) of the POBO.
The court heard that at the material time, Chau, Chow and Li were employed by HSBC to promote and sell its investment and insurance products to clients.
In April and September 2012, Chau respectively submitted five and nine unit trust subscription orders of a client to HSBC without his authorisation. As a result, HSBC was induced to release commissions totalling over $47,000 to her.
The court heard that in April and July 2012, Chow falsely represented to HSBC that he handled two unit trust subscription orders made by two clients in Hong Kong respectively, hereby inducing HSBC to release about $70,000 in commissions to him.
Chow offered a bribe of $100,000 in cash to a colleague on one occasion in November 2012 as a reward for referring clients to him.
The court heard that between September and October 2012, Li falsely represented to HSBC that she was the sales staff of 11 unit trust subscription orders and one insurance policy made by five clients. As a result, HSBC was induced to release about $118,000 in commissions to her.
Li offered a bribe of $30,000 to $60,000 in cash to a colleague in November 2012 as a reward for referring clients to her. Li also agreed to offer another bribe of $55,000 to that colleague for the same purpose, the court was told.
HSBC had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Francis Lo, assisted by ICAC officer Berek Fung.
Chau Hang-yu (formerly known as Aixingero Chat-yung), 30, a former Associate Relationship Manager of the Hongkong and Shanghai Banking Corporation Limited (HSBC), received a jail term of 12 months.
Co-defendant Steve Chow Chun-yin, 32, a former Wealth Management Manager of HSBC, was jailed for 18 months, while another co-defendant Li Lee, 28, also a former Wealth Management Manager of HSBC, had her sentencing adjourned to April 19, 2016.
In sentencing, Judge Frankie Yiu Fun-che said the defendants had seriously breached the trust placed on them and put the financial interest of their clients as well as HSBC’s reputation at risk. The offences committed by them were serious and custodial sentences were inevitable.
Chau earlier pleaded guilty to two counts of fraud, contrary to Section 16A of the Theft Ordinance, while Li admitted seven charges – five of fraud, and two of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance (POBO). Chow was found guilty after trial of three charges – two of fraud and one of offering an advantage to an agent, contrary to Section 9(2)(a) of the POBO.
The court heard that at the material time, Chau, Chow and Li were employed by HSBC to promote and sell its investment and insurance products to clients.
In April and September 2012, Chau respectively submitted five and nine unit trust subscription orders of a client to HSBC without his authorisation. As a result, HSBC was induced to release commissions totalling over $47,000 to her.
The court heard that in April and July 2012, Chow falsely represented to HSBC that he handled two unit trust subscription orders made by two clients in Hong Kong respectively, hereby inducing HSBC to release about $70,000 in commissions to him.
Chow offered a bribe of $100,000 in cash to a colleague on one occasion in November 2012 as a reward for referring clients to him.
The court heard that between September and October 2012, Li falsely represented to HSBC that she was the sales staff of 11 unit trust subscription orders and one insurance policy made by five clients. As a result, HSBC was induced to release about $118,000 in commissions to her.
Li offered a bribe of $30,000 to $60,000 in cash to a colleague in November 2012 as a reward for referring clients to her. Li also agreed to offer another bribe of $55,000 to that colleague for the same purpose, the court was told.
HSBC had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Francis Lo, assisted by ICAC officer Berek Fung.