Ex-associate director of investment bank gets three and a half years for $1.46m bribery
2017-11-16
A former associate director of a foreign investment bank, charged by the ICAC, was today (November 16) sentenced to three and a half years’ imprisonment at the District Court for accepting bribes of about $1.46 million in total for managing the investment portfolio of a client with the bank.
Tu Bing, 40, former associate director of UBS AG Hong Kong Branch (UBS Hong Kong Branch), was earlier found guilty of one count of conspiracy for an agent to accept advantages, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance.
In sentencing, Judge Gary Lam Kar-yan said the starting point for the bribery offence was three and a half years’ imprisonment and there were no exceptional circumstances that warranted any reduction.
The court heard that at the material time, the defendant was an associate director of Global Wealth Management and Business Banking of UBS Hong Kong Branch. He was responsible for managing investment portfolios of clients.
In May 2007, the defendant convinced a client of UBS Hong Kong Branch to invest in Hong Kong stocks. The client, a Mainlander living in Shenzhen, relied entirely on the defendant to manage his investments.
At a meeting at a hotel in Shenzhen, the defendant told the client that it was a trade practice for the latter to pay him 20 per cent of the realised profits from investments. The client understood that the 20 per cent was “handling and intelligence fees”, and acceded to the defendant’s request.
Between June and July 2007, the defendant sent the client two emails together with trading summaries detailing a profit of over $3,090,000 earned from trading in stocks. At the end of the trading summaries, there was a remark indicating “20 per cent” or over $618,000.
After the defendant reminded the client of the “handling and intelligence fees”, the client signed a blank cheque for over $610,000 and gave it to him. The cheque was deposited into the bank account of the defendant’s younger brother, the court heard.
In September 2007, the defendant further sent the client two other emails together with trading summaries detailing another profit of about $4.25 million earned from trading in stocks.
Although the defendant did not make a remark of “20 per cent” on the trade summaries, the client understood that he had to pay about $850,000 to the defendant.
One month later, the client gave a signed blank cheque for that amount to the defendant when they met at the hotel in Shenzhen. The cheque was deposited into the bank account of the defendant’s younger brother.
In December 2007, two sums of money, namely $1 million and $400,000, were transferred from the bank account of the defendant’s younger brother to that of the defendant, the court was told.
UBS Hong Kong Branch had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Flora Cheng, assisted by ICAC officer Angel Ng.
Tu Bing, 40, former associate director of UBS AG Hong Kong Branch (UBS Hong Kong Branch), was earlier found guilty of one count of conspiracy for an agent to accept advantages, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance.
In sentencing, Judge Gary Lam Kar-yan said the starting point for the bribery offence was three and a half years’ imprisonment and there were no exceptional circumstances that warranted any reduction.
The court heard that at the material time, the defendant was an associate director of Global Wealth Management and Business Banking of UBS Hong Kong Branch. He was responsible for managing investment portfolios of clients.
In May 2007, the defendant convinced a client of UBS Hong Kong Branch to invest in Hong Kong stocks. The client, a Mainlander living in Shenzhen, relied entirely on the defendant to manage his investments.
At a meeting at a hotel in Shenzhen, the defendant told the client that it was a trade practice for the latter to pay him 20 per cent of the realised profits from investments. The client understood that the 20 per cent was “handling and intelligence fees”, and acceded to the defendant’s request.
Between June and July 2007, the defendant sent the client two emails together with trading summaries detailing a profit of over $3,090,000 earned from trading in stocks. At the end of the trading summaries, there was a remark indicating “20 per cent” or over $618,000.
After the defendant reminded the client of the “handling and intelligence fees”, the client signed a blank cheque for over $610,000 and gave it to him. The cheque was deposited into the bank account of the defendant’s younger brother, the court heard.
In September 2007, the defendant further sent the client two other emails together with trading summaries detailing another profit of about $4.25 million earned from trading in stocks.
Although the defendant did not make a remark of “20 per cent” on the trade summaries, the client understood that he had to pay about $850,000 to the defendant.
One month later, the client gave a signed blank cheque for that amount to the defendant when they met at the hotel in Shenzhen. The cheque was deposited into the bank account of the defendant’s younger brother.
In December 2007, two sums of money, namely $1 million and $400,000, were transferred from the bank account of the defendant’s younger brother to that of the defendant, the court was told.
UBS Hong Kong Branch had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Flora Cheng, assisted by ICAC officer Angel Ng.