Forty months’ jail for $120m plastic material purchase orders fraud
2016-11-16
A former sales representative of two plastic raw material trading companies and a proprietor of another trading firm, charged by the ICAC, were today (November 16) each sentenced to 40 months’ imprisonment at the District Court for conspiracy to defraud the two trading companies of over $120 million worth of purchase orders.
Chung Wai-leung, 42, former sales representative of Geoquad Company Limited (GCL) and Geoquad (Hong Kong) Company Limited (GHKCL), and Chu Wing-wah, 48, sole proprietor of Fu Wah Trading Company (FWTC), earlier pleaded guilty to two joint charges of conspiracy to defraud, contrary to Common Law.
In sentencing, Judge Frankie Yiu Fun-che said he considered the culpability of defendants was equal in view of their respective roles in the scam.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, Chung was a sales representative of GCL and GHKCL, both plastic raw material trading companies.
After its inception in 2013, GHKCL took over part of GCL’s business, including the supply of plastic raw materials to 12 companies. Since then, Chung had been assigned to work in GHKCL.
Chu incorporated FWTC in 2008 and was its sole proprietor. Since 2011, he had run another plastic raw material trading company, Fu Wah Trading (International) Company Limited (FWTI), with a business partner.
GCL records showed that between February 25, 2011 and April 30, 2013, six of the 12 companies placed 108 orders for plastic raw materials with GCL. The total amount of goods sold was over $60 million, the court heard.
In addition, GHKCL records showed that between May 9, 2013 and July 30, 2014, 11 of those companies placed 107 orders for plastic raw materials with GHKCL. The total amount of goods sold was over $66 million.
Investigations, however, proved that the transactions of GCL and GHKCL had never been placed by the companies concerned.
The court heard that full payments for the transactions of GCL were settled by FWTC, FWTI, Chu or his business partner. Part of the payments for the transactions of GHKCL were settled by FWTC, FWTI or Chu’s business partner. Over $8 million is still outstanding.
As a result of the above transactions, Chung earned commissions of over $151,000 from GCL and over $127,000 from GHKCL respectively, the court was told.
GCL and GHKCL had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by Public Prosecutor Joycelyn Ng, assisted by ICAC officer Phoebe Tsang.
Chung Wai-leung, 42, former sales representative of Geoquad Company Limited (GCL) and Geoquad (Hong Kong) Company Limited (GHKCL), and Chu Wing-wah, 48, sole proprietor of Fu Wah Trading Company (FWTC), earlier pleaded guilty to two joint charges of conspiracy to defraud, contrary to Common Law.
In sentencing, Judge Frankie Yiu Fun-che said he considered the culpability of defendants was equal in view of their respective roles in the scam.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, Chung was a sales representative of GCL and GHKCL, both plastic raw material trading companies.
After its inception in 2013, GHKCL took over part of GCL’s business, including the supply of plastic raw materials to 12 companies. Since then, Chung had been assigned to work in GHKCL.
Chu incorporated FWTC in 2008 and was its sole proprietor. Since 2011, he had run another plastic raw material trading company, Fu Wah Trading (International) Company Limited (FWTI), with a business partner.
GCL records showed that between February 25, 2011 and April 30, 2013, six of the 12 companies placed 108 orders for plastic raw materials with GCL. The total amount of goods sold was over $60 million, the court heard.
In addition, GHKCL records showed that between May 9, 2013 and July 30, 2014, 11 of those companies placed 107 orders for plastic raw materials with GHKCL. The total amount of goods sold was over $66 million.
Investigations, however, proved that the transactions of GCL and GHKCL had never been placed by the companies concerned.
The court heard that full payments for the transactions of GCL were settled by FWTC, FWTI, Chu or his business partner. Part of the payments for the transactions of GHKCL were settled by FWTC, FWTI or Chu’s business partner. Over $8 million is still outstanding.
As a result of the above transactions, Chung earned commissions of over $151,000 from GCL and over $127,000 from GHKCL respectively, the court was told.
GCL and GHKCL had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by Public Prosecutor Joycelyn Ng, assisted by ICAC officer Phoebe Tsang.