Duo jailed for $6.4m bribery over trading of derivative warrants at re-trial
2018-2-26
A former senior executive of a bank and an investor, charged by the ICAC, were today (February 26) each sentenced to 45 months’ imprisonment at a re-trial in the Court of First Instance (CFI) for accepting and offering about $6.4 million in bribes respectively in relation to the trading of derivative warrants issued by the bank.
The defendants were Ma Sin-chi, 44, former director of Deutsche Bank Aktiengesellschaft (Deutsche Bank), and Ha But-yee, 66, an investor.
In sentencing, Judge Mrs Audrey Patricia Campbell-Moffat said it was a complicated case. For Ma, there was a serious breach of trust, but that breach of trust was exercised at the behest of and to the benefit of Ha.
The judge also ordered Ma to pay about $6.4 million to Deutsche Bank by way of restitution.
At the re-trial in January 2018, Ma pleaded guilty to one count of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO), while Ha admitted one count of offering an advantage to an agent, contrary to Section 9(2)(a) of the POBO.
The court heard that at the material time, Ma was a director of Deutsche Bank and also served as a warrant trader.
Between January 16, 2007 and May 7, 2008, Ma accepted bribes of about $6.4 million in total from Ha as rewards for giving information to Ha and his associates on derivative warrants issued by Deutsche Bank, which might assist them in their trading of those derivative warrants; or rendering assistance to them in their trading of those derivative warrants.
Ha offered the bribes of about $6.4 million in total to Ma for the same purpose during the same period.
The court heard that Ha and several members of his family had made a net profit of over $203 million through the trading of those derivative warrants issued by Deutsche Bank.
The management of Deutsche Bank strictly prohibited its staff members from accepting bribes for providing other persons with confidential information belonging to the bank. Ma was made aware of such a guideline concerning the acceptance of advantages while he was employed by the bank.
In December 2013, Ma and Ha were found guilty at the CFI by a jury of four counts of agent accepting an advantage and four counts of offering an advantage to an agent respectively. They were each sentenced to seven years’ imprisonment.
Ma and Ha subsequently lodged appeals with the Court of Appeal (CA). In June 2016, the CA quashed their convictions and ordered a re-trial. After the CFI allowed the amendment of the indictment, Ma and Ha each faced one charge under the POBO at the re-trial.
Deutsche Bank and the Securities and Futures Commission had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel John Reading SC, Gilbert Chong and Public Prosecutor Zena Yuen, assisted by ICAC officer Natasha Li.
The defendants were Ma Sin-chi, 44, former director of Deutsche Bank Aktiengesellschaft (Deutsche Bank), and Ha But-yee, 66, an investor.
In sentencing, Judge Mrs Audrey Patricia Campbell-Moffat said it was a complicated case. For Ma, there was a serious breach of trust, but that breach of trust was exercised at the behest of and to the benefit of Ha.
The judge also ordered Ma to pay about $6.4 million to Deutsche Bank by way of restitution.
At the re-trial in January 2018, Ma pleaded guilty to one count of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO), while Ha admitted one count of offering an advantage to an agent, contrary to Section 9(2)(a) of the POBO.
The court heard that at the material time, Ma was a director of Deutsche Bank and also served as a warrant trader.
Between January 16, 2007 and May 7, 2008, Ma accepted bribes of about $6.4 million in total from Ha as rewards for giving information to Ha and his associates on derivative warrants issued by Deutsche Bank, which might assist them in their trading of those derivative warrants; or rendering assistance to them in their trading of those derivative warrants.
Ha offered the bribes of about $6.4 million in total to Ma for the same purpose during the same period.
The court heard that Ha and several members of his family had made a net profit of over $203 million through the trading of those derivative warrants issued by Deutsche Bank.
The management of Deutsche Bank strictly prohibited its staff members from accepting bribes for providing other persons with confidential information belonging to the bank. Ma was made aware of such a guideline concerning the acceptance of advantages while he was employed by the bank.
In December 2013, Ma and Ha were found guilty at the CFI by a jury of four counts of agent accepting an advantage and four counts of offering an advantage to an agent respectively. They were each sentenced to seven years’ imprisonment.
Ma and Ha subsequently lodged appeals with the Court of Appeal (CA). In June 2016, the CA quashed their convictions and ordered a re-trial. After the CFI allowed the amendment of the indictment, Ma and Ha each faced one charge under the POBO at the re-trial.
Deutsche Bank and the Securities and Futures Commission had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel John Reading SC, Gilbert Chong and Public Prosecutor Zena Yuen, assisted by ICAC officer Natasha Li.