Company proprietor gets three years for $31m L/C fraud
2016-3-29
The sole proprietor of an electronic company, charged by the ICAC, was today (Tuesday) sentenced to three years’ imprisonment at the District Court for using false commercial invoices to induce five banks to grant 19 Letters of Credit (L/C) facilities totalling over $31 million to another company.
Huang Cheng-chiang, 67, sole proprietor of Simple Electronic Company (Simple Electronic), was earlier found guilty of 19 charges – five of using a false instrument, contrary to Section 73 of the Crimes Ordinance; and 14 of using a copy of a false instrument, contrary to Section 74 of the Crimes Ordinance.
Deputy Judge Ms Kathie Cheung Kit-yee said the defendant had committed the offences which were serious in nature, and undermined the international image of Hong Kong’s banks.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, the defendant was the sole proprietor of Simple Electronic. He came to know a Mainland supplier of electronic parts to Sunwave Development Limited (Sunwave), a subsidiary of then listed Sunlink International Holdings Limited.
Upon the supplier’s request, the defendant used Simple Electronic as the beneficiary of the L/Cs in respect of the transactions between the supplier and Sunwave.
Based on the information provided by the supplier, the defendant submitted to five banks via the bank of Simple Electronic five false commercial invoices and 14 copies of false commercial invoices purporting that Simple Electronic had supplied electronic components to Sunwave between November 2005 and September 2008.
The court heard that relying on the contents of those false commercial invoices, the five banks granted the L/C facilities applied by Sunwave to settle the goods payments to Simple Electronic.
The L/C proceeds totalling over $31 million were deposited into the account of Simple Electronic with its bank, of which the defendant was an authorised signatory.
The defendant deducted about one per cent of the L/C proceeds as commissions, and transferred the remaining funds into other Hong Kong bank accounts designated by the supplier, the court was told.
The six banks concerned had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Thomas Iu, assisted by ICAC officer Matilda Wong.
Huang Cheng-chiang, 67, sole proprietor of Simple Electronic Company (Simple Electronic), was earlier found guilty of 19 charges – five of using a false instrument, contrary to Section 73 of the Crimes Ordinance; and 14 of using a copy of a false instrument, contrary to Section 74 of the Crimes Ordinance.
Deputy Judge Ms Kathie Cheung Kit-yee said the defendant had committed the offences which were serious in nature, and undermined the international image of Hong Kong’s banks.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, the defendant was the sole proprietor of Simple Electronic. He came to know a Mainland supplier of electronic parts to Sunwave Development Limited (Sunwave), a subsidiary of then listed Sunlink International Holdings Limited.
Upon the supplier’s request, the defendant used Simple Electronic as the beneficiary of the L/Cs in respect of the transactions between the supplier and Sunwave.
Based on the information provided by the supplier, the defendant submitted to five banks via the bank of Simple Electronic five false commercial invoices and 14 copies of false commercial invoices purporting that Simple Electronic had supplied electronic components to Sunwave between November 2005 and September 2008.
The court heard that relying on the contents of those false commercial invoices, the five banks granted the L/C facilities applied by Sunwave to settle the goods payments to Simple Electronic.
The L/C proceeds totalling over $31 million were deposited into the account of Simple Electronic with its bank, of which the defendant was an authorised signatory.
The defendant deducted about one per cent of the L/C proceeds as commissions, and transferred the remaining funds into other Hong Kong bank accounts designated by the supplier, the court was told.
The six banks concerned had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Thomas Iu, assisted by ICAC officer Matilda Wong.