Duo in court over $120m plastic material purchase orders fraud
2016-9-9
A former sales representative of two plastic raw material trading companies and a proprietor of another trading firm appeared in the Eastern Magistracy today (Friday) after being charged by the ICAC with conspiracy to defraud the two trading companies of over $120 million worth of purchase orders.
Chung Wai-leung, 41, former sales representative of Geoquad Company Limited (GCL), and Chu Wing-wah, 48, sole proprietor of Fu Wah Trading Company, who were charged on Wednesday (September 7), faced two joint charges of conspiracy to defraud, contrary to Common Law.
No plea was taken today. Acting Principal Magistrate Joseph To Ho-shing transferred the case to the District Court for plea on September 30 this year.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offences.
At the material time, Chung was a sales representative of GCL, a plastic raw material trading company. After its inception in 2013, Geoquad (Hong Kong) Company Limited (GHKCL) took over part of GCL’s business. Since then, Chung had been assigned to work in GHKCL.
One of the charges alleged that between February 25, 2011 and June 18, 2013, Chung and Chu conspired together to defraud GCL by falsely representing that there were 108 purchase orders placed by six companies respectively, submitting documents evidencing the purported purchase orders, and causing GCL to approve the purported purchase orders.
The other charge alleged that between May 9, 2013 and August 6, 2014, Chung and Chu conspired together to defraud GHKCL by falsely representing that there were 107 purchase orders placed by 11 companies respectively, submitting documents evidencing the purported purchase orders, and causing GHKCL to approve the purported purchase orders.
The total amount of goods sold in relation to the above purported purchase orders was said to be over $120 million.
GCL and GHKCL had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by ICAC officer Phoebe Tsang.
Chung Wai-leung, 41, former sales representative of Geoquad Company Limited (GCL), and Chu Wing-wah, 48, sole proprietor of Fu Wah Trading Company, who were charged on Wednesday (September 7), faced two joint charges of conspiracy to defraud, contrary to Common Law.
No plea was taken today. Acting Principal Magistrate Joseph To Ho-shing transferred the case to the District Court for plea on September 30 this year.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offences.
At the material time, Chung was a sales representative of GCL, a plastic raw material trading company. After its inception in 2013, Geoquad (Hong Kong) Company Limited (GHKCL) took over part of GCL’s business. Since then, Chung had been assigned to work in GHKCL.
One of the charges alleged that between February 25, 2011 and June 18, 2013, Chung and Chu conspired together to defraud GCL by falsely representing that there were 108 purchase orders placed by six companies respectively, submitting documents evidencing the purported purchase orders, and causing GCL to approve the purported purchase orders.
The other charge alleged that between May 9, 2013 and August 6, 2014, Chung and Chu conspired together to defraud GHKCL by falsely representing that there were 107 purchase orders placed by 11 companies respectively, submitting documents evidencing the purported purchase orders, and causing GHKCL to approve the purported purchase orders.
The total amount of goods sold in relation to the above purported purchase orders was said to be over $120 million.
GCL and GHKCL had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by ICAC officer Phoebe Tsang.