Two former senior staff members of a toy trading company and four directors cum shareholders of three toy manufacturers have been charged by the ICAC today (November 23) with conspiracy to accept and soliciting illegal commissions totalling over $5.6 million in relation to placing of toy orders.

The defendants are Cheung Kwok-yee, 52, and Lam Chi-ming, 51, respectively former executive director and former product design manager of Fotorama (Hong Kong) Limited (Fotorama Hong Kong); Danny Lo Kai-sing, 44, director cum shareholder of East Star Printing Company Limited (East Star); Wong Chung-wing, 46, and Law Chi-ngong, 49, both directors cum shareholders of Chung Luen Electronics Company Limited (Chung Luen); and Qiu Xiaoming, 48, director cum shareholder of Fortune International (HK) Limited (Fortune).

The defendants face a total of six charges – four of conspiracy for agents to accept advantages, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO) and Section 159A of the Crimes Ordinance; and two of agent soliciting advantages, contrary to Section 9(1)(a) of the POBO.

They will appear in the Kowloon City Magistracy tomorrow (November 24), pending transfer of the case to the District Court for plea.

At the material time, Fotorama Hong Kong was a toy trading company, which placed orders with different toy manufacturers on behalf of its parent company in Mexico and subsidiaries. Among those toy manufacturers were East Star, Chung Luen and Fortune.

One of the charges alleges that between an unknown day in July 2010 and March 31, 2015, Lam and Lo conspired together and with a freelance agent for Lam to, without lawful authority or reasonable excuse, accept from Lo and the freelance agent commissions of over $1,598,000 as rewards for Lam causing Fotorama Hong Kong, its manufacturers and/or suppliers to place orders with East Star.

Another charge alleges that between an unknown day in March 2011 and April 30, 2013, Lam, Wong and Law conspired together and with the freelance agent for Lam to, without lawful authority or reasonable excuse, accept from Wong, Law and the freelance agent commissions of over $461,000 as rewards for Lam causing Fotorama Hong Kong, its manufacturers and/or suppliers to place orders with Chung Luen.

The third charge alleges that between an unknown day in mid-2011 and July 10, 2015, Lam and Qiu conspired together and with the freelance agent for Lam to, without lawful authority or reasonable excuse, accept from Qiu and the freelance agent commissions of over $3,301,000 as rewards for Lam causing Fotorama Hong Kong, its manufacturers and/or suppliers to place orders with Fortune.

The fourth charge alleges that between September 1 and 16, 2015, Cheung, Lam and Qiu conspired together and with the freelance agent for Cheung and Lam to, without lawful authority or reasonable excuse, accept from Qiu and the freelance agent commissions of $245,000 as rewards for Cheung and/or Lam causing Fotorama Hong Kong, its manufacturers and/or suppliers to place orders with Fortune.

The fifth charge alleges that on an unknown day in 2012, Lam, without lawful authority or reasonable excuse, solicited commissions from an engineering director of another toy manufacturer as rewards for Lam causing Fotorama Hong Kong, its manufacturers and/or suppliers to place orders with the toy manufacturer.

The remaining charge alleges that on an unknown day in late 2012, Cheung, without lawful authority or reasonable excuse, solicited commissions from another director of the toy manufacturer as rewards for Cheung causing Fotorama Hong Kong, its manufacturers and/or suppliers to place orders with the toy manufacturer.

Fotorama Hong Kong has rendered full assistance to the ICAC during its investigation.

The defendants have been released on ICAC bail, pending their court appearance tomorrow.