Then HKPC General Manager and three others charged by ICAC over $7m ITF funding fraud and false accounting
2025-5-13
Three former employees and a client of the Hong Kong Productivity Council (HKPC) were charged by the ICAC today (May 13) for allegedly defrauding the Innovation and Technology Commission (ITC) of funding totalling over $7 million on two research and development (R&D) projects of the HKPC and falsifying accounts.
Derek Louie Chi-hang, Bryan So Man-kit and Sammy Lee Shu-shing, aged between 46 to 64, were the General Manager, Principal Consultant and Project Officer of the HKPC at the material time; and the remaining defendant, Yip Wai-man, 52, is director-cum-shareholder of Inlight Technology (HK) Limited (Inlight). They face three counts of fraud and two of false accounting, contrary to sections 16A(1) and 19(1)(a) of the Theft Ordinance.
The four defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Thursday (May 15) for mention. The prosecution will apply for transferring the case to the District Court for plea.
The HKPC might apply for the Innovation and Technology Fund (ITF) administered by the ITC for financing its innovation and technology projects. The HKPC was required to secure sponsorships from the industry to cover at least 10% of the total project cost and submit to the ITC proof of sponsorships and relevant receipts. Upon approval, the HKPC would receive funding of up to 90% of the total project cost. Sponsoring organisations of ITF projects which had made full payment of sponsorship would be entitled to cash rebate equivalent to 40% of the sponsorship.
The HKPC maintained a workshop for providing machining services for a fee. Inlight was a client of the workshop, and Yip, a director of Inlight, was a former consultant of the HKPC.
The alleged offences took place between September 2015 and August 2023 when the two innovation and technology R&D projects concerned were respectively coordinated by Louie and So. The duo were responsible for securing sponsorships from the industry for their respective projects to meet the requirement of applying for the ITF.
It is alleged that Louie, So and Lee dishonestly concealed quotations and delivery documents issued by the HKPC to a client for three service orders of the workshop worth totalling $100,000 from accounting. The trio also allegedly inflated the sponsorship to an innovation and technology project by making false representations to the ITC that the aforesaid project, coordinated by Louie, had secured $100,000 sponsorship from the aforesaid client, and defrauded the ITC of approving ITF funding totalling over $3.1 million to the HKPC for financing the project and releasing a cash rebate of $40,000 to the client concerned.
So, by similar fraudulent means, had also dishonestly concealed relevant quotations and delivery documents in regard of four other workshop service orders of the abovementioned client and Inlight. It is also alleged that So had inflated the sponsorship of another innovation and technology project by falsely representing that the aforesaid project coordinated by him had secured $170,000 sponsorship from the two clients and defrauded the ITC of approving ITF funding totalling about $4 million to the HKPC.
Meanwhile, it is also suspected that So and Yip had falsely represented to the ITC that a related company of Inlight had provided sponsorship totalling $100,000 to the HKPC in regard of one of the projects concerned and defrauded the ITC of releasing a cash rebate totalling $40,000.
The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendants had allegedly falsely represented the service fees of the HKPC workshop paid by relevant clients as the sponsorship of the projects concerned, and they had instructed other HKPC staff to conceal relevant accounting records.
The ITC and HKPC rendered full assistance to the ICAC during its investigation into the case.
Derek Louie Chi-hang, Bryan So Man-kit and Sammy Lee Shu-shing, aged between 46 to 64, were the General Manager, Principal Consultant and Project Officer of the HKPC at the material time; and the remaining defendant, Yip Wai-man, 52, is director-cum-shareholder of Inlight Technology (HK) Limited (Inlight). They face three counts of fraud and two of false accounting, contrary to sections 16A(1) and 19(1)(a) of the Theft Ordinance.
The four defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Thursday (May 15) for mention. The prosecution will apply for transferring the case to the District Court for plea.
The HKPC might apply for the Innovation and Technology Fund (ITF) administered by the ITC for financing its innovation and technology projects. The HKPC was required to secure sponsorships from the industry to cover at least 10% of the total project cost and submit to the ITC proof of sponsorships and relevant receipts. Upon approval, the HKPC would receive funding of up to 90% of the total project cost. Sponsoring organisations of ITF projects which had made full payment of sponsorship would be entitled to cash rebate equivalent to 40% of the sponsorship.
The HKPC maintained a workshop for providing machining services for a fee. Inlight was a client of the workshop, and Yip, a director of Inlight, was a former consultant of the HKPC.
The alleged offences took place between September 2015 and August 2023 when the two innovation and technology R&D projects concerned were respectively coordinated by Louie and So. The duo were responsible for securing sponsorships from the industry for their respective projects to meet the requirement of applying for the ITF.
It is alleged that Louie, So and Lee dishonestly concealed quotations and delivery documents issued by the HKPC to a client for three service orders of the workshop worth totalling $100,000 from accounting. The trio also allegedly inflated the sponsorship to an innovation and technology project by making false representations to the ITC that the aforesaid project, coordinated by Louie, had secured $100,000 sponsorship from the aforesaid client, and defrauded the ITC of approving ITF funding totalling over $3.1 million to the HKPC for financing the project and releasing a cash rebate of $40,000 to the client concerned.
So, by similar fraudulent means, had also dishonestly concealed relevant quotations and delivery documents in regard of four other workshop service orders of the abovementioned client and Inlight. It is also alleged that So had inflated the sponsorship of another innovation and technology project by falsely representing that the aforesaid project coordinated by him had secured $170,000 sponsorship from the two clients and defrauded the ITC of approving ITF funding totalling about $4 million to the HKPC.
Meanwhile, it is also suspected that So and Yip had falsely represented to the ITC that a related company of Inlight had provided sponsorship totalling $100,000 to the HKPC in regard of one of the projects concerned and defrauded the ITC of releasing a cash rebate totalling $40,000.
The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendants had allegedly falsely represented the service fees of the HKPC workshop paid by relevant clients as the sponsorship of the projects concerned, and they had instructed other HKPC staff to conceal relevant accounting records.
The ITC and HKPC rendered full assistance to the ICAC during its investigation into the case.