Five ex-chefs and suppliers admit $1.5m bribery and fraud
2016-11-18
Two former chefs of a Chinese restaurant and three food suppliers, charged by the ICAC, today (November 18) admitted at the District Court that they had solicited, accepted and offered illegal rebates up to about $1.5 million in relation to placing of food orders, and conspiracy to defraud the restaurant of payments totalling over $3 million.
The defendants were Li Tat-man, 45, former sous chef of Hutong, a Chinese restaurant in Tsim Sha Tsui, under Aqua Restaurant Group (ARG), Ng Kam-wai, 57, former chef de cuisine of Hutong; Lo Chi-kin, 63, operator of Choi Hop Lee (CHL), Yuen Chi-chin, 68, proprietor of Chi Kee Poultry (CKP), and Kwan Chik-hung, 61, proprietor of Hin Kee Ho (HKH).
They pleaded guilty to a total of 27 charges – 13 of agent accepting an advantage, contrary to Section 9(1)(b) of the Prevention of Bribery Ordinance (POBO); nine of offering an advantage to an agent, contrary to Section 9(2)(b) of the POBO; two of agent soliciting an advantage, contrary to Section 9(1)(b) of the POBO; and three of conspiracy to defraud, contrary to Common Law.
Deputy Judge Ms June Cheung Tin-ngan adjourned the case to next Friday (November 25) for sentence. The defendants were remanded in the custody of the Correctional Services Department.
The court heard that at the material time, Li and Ng were employed by ARG trading as Hutong as sous chef and chef de cuisine respectively. Lo was operator of CHL, which supplied condiments to restaurants, including Hutong. Yuen was proprietor of CKP, a supplier of poultry, while Kwan was proprietor of HKH, a supplier of seafood.
On the supply of spices, Li and Lo agreed to submit inflated CHL invoices to Hutong, and not to deliver all the goods as stated on CHL invoices to it. A total of 253 CHL invoices showed that the inflated amount was over $283,000. In return, Li accepted monthly payments totalling up to $192,000 between June 2009 and October 2014.
As regards the supply of poultry, Li overstated the total catty of poultry delivered to Hutong, and accepted payments from Yuen through Ng.
Between January 2008 and June 2015, Li accepted monthly payments of $356,000 in total from Yuen, while Ng accepted from Yuen monthly payments up to $373,000 in total as well as $15,800. Yuen, however, offered monthly rebates up to $363,000 and $15,800 to Ng, the court heard.
In addition, Li and Ng submitted inflated HKH invoices on seafood supply to Hutong, causing Hutong to be overcharged for up to $23,000 each month.
The court heard that Li and Ng solicited from Kwan a commission of $22,320 as a reward for placing orders of seafood with HKH.
Eventually, Li accepted a certain amount of money ranging from $10,000 to $12,000 from Kwan in May 2015. He further solicited $4,800 from Kwan, but accepted $2,800 from him in June 2015 for the same purpose.
Meanwhile, Ng accepted from Kwan $11,000 in May 2015, and monthly tea money up to $82,000 between January 2012 and June 2015.
In order to retain Hutong as a client, Kwan offered monthly rebates up to $252,000 to Ng between January 2008 and December 2014.
On five occasions between January and June 2015, Kwan also offered rebates up to about $22,500 to Ng and $2,800 to Li respectively.
The court heard that between January 2010 and June 2015, Li and Ng accepted monthly payments up to $325,000 and $82,000 from the operator of Man Kee Fish Company (MKFC) respectively as rewards for placing orders of seafood with MKFC.
In addition, Li accepted rebates up to about $10,000 from the proprietor of Man Yan Hin Store Shanghai (MYH) between January 2014 and June 2015 as rewards for placing orders of groceries with MYH.
Between January 2014 and April 2015, Li accepted from the operator of Contact Food Supplies Company (CFSC) monthly payments up to $28,000 in total as rewards for placing orders of vegetable with CFSC, the court was told.
The prosecution was today represented by Senior Public Prosecutor Rosa Lo, and assisted by ICAC officer Ellen Tong.
The defendants were Li Tat-man, 45, former sous chef of Hutong, a Chinese restaurant in Tsim Sha Tsui, under Aqua Restaurant Group (ARG), Ng Kam-wai, 57, former chef de cuisine of Hutong; Lo Chi-kin, 63, operator of Choi Hop Lee (CHL), Yuen Chi-chin, 68, proprietor of Chi Kee Poultry (CKP), and Kwan Chik-hung, 61, proprietor of Hin Kee Ho (HKH).
They pleaded guilty to a total of 27 charges – 13 of agent accepting an advantage, contrary to Section 9(1)(b) of the Prevention of Bribery Ordinance (POBO); nine of offering an advantage to an agent, contrary to Section 9(2)(b) of the POBO; two of agent soliciting an advantage, contrary to Section 9(1)(b) of the POBO; and three of conspiracy to defraud, contrary to Common Law.
Deputy Judge Ms June Cheung Tin-ngan adjourned the case to next Friday (November 25) for sentence. The defendants were remanded in the custody of the Correctional Services Department.
The court heard that at the material time, Li and Ng were employed by ARG trading as Hutong as sous chef and chef de cuisine respectively. Lo was operator of CHL, which supplied condiments to restaurants, including Hutong. Yuen was proprietor of CKP, a supplier of poultry, while Kwan was proprietor of HKH, a supplier of seafood.
On the supply of spices, Li and Lo agreed to submit inflated CHL invoices to Hutong, and not to deliver all the goods as stated on CHL invoices to it. A total of 253 CHL invoices showed that the inflated amount was over $283,000. In return, Li accepted monthly payments totalling up to $192,000 between June 2009 and October 2014.
As regards the supply of poultry, Li overstated the total catty of poultry delivered to Hutong, and accepted payments from Yuen through Ng.
Between January 2008 and June 2015, Li accepted monthly payments of $356,000 in total from Yuen, while Ng accepted from Yuen monthly payments up to $373,000 in total as well as $15,800. Yuen, however, offered monthly rebates up to $363,000 and $15,800 to Ng, the court heard.
In addition, Li and Ng submitted inflated HKH invoices on seafood supply to Hutong, causing Hutong to be overcharged for up to $23,000 each month.
The court heard that Li and Ng solicited from Kwan a commission of $22,320 as a reward for placing orders of seafood with HKH.
Eventually, Li accepted a certain amount of money ranging from $10,000 to $12,000 from Kwan in May 2015. He further solicited $4,800 from Kwan, but accepted $2,800 from him in June 2015 for the same purpose.
Meanwhile, Ng accepted from Kwan $11,000 in May 2015, and monthly tea money up to $82,000 between January 2012 and June 2015.
In order to retain Hutong as a client, Kwan offered monthly rebates up to $252,000 to Ng between January 2008 and December 2014.
On five occasions between January and June 2015, Kwan also offered rebates up to about $22,500 to Ng and $2,800 to Li respectively.
The court heard that between January 2010 and June 2015, Li and Ng accepted monthly payments up to $325,000 and $82,000 from the operator of Man Kee Fish Company (MKFC) respectively as rewards for placing orders of seafood with MKFC.
In addition, Li accepted rebates up to about $10,000 from the proprietor of Man Yan Hin Store Shanghai (MYH) between January 2014 and June 2015 as rewards for placing orders of groceries with MYH.
Between January 2014 and April 2015, Li accepted from the operator of Contact Food Supplies Company (CFSC) monthly payments up to $28,000 in total as rewards for placing orders of vegetable with CFSC, the court was told.
The prosecution was today represented by Senior Public Prosecutor Rosa Lo, and assisted by ICAC officer Ellen Tong.