Duo charged for alleged HK$400m L/C fraud
2015-1-20
An operator and a shipping clerk of an oil retailing company have been charged by the ICAC for allegedly defrauding a bank of over US$50.5 million (about HK$400 million) worth of Letters of Credit (L/C) facilities based on bogus business transactions, with the operator accused of possessing poison.
Lau Wai-ho, 52, operator of Ever Crown (China) Investment Limited (ECIL), and Lam Wing-yu, 38, shipping clerk of ECIL, who were charged yesterday (January 19), face a joint charge of fraud, contrary to Section 16A of the Theft Ordinance. Lau alone faces six similar fraud charges.
Lau further faces one charge of possession of poison included in Part I of the Poisons List, contrary to Sections 23(1) and 33(1) of the Pharmacy and Poisons Ordinance.
The defendants, currently on ICAC bail, will appear at the Eastern Magistracy tomorrow (January 21) for transfer to the District Court for plea.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offences.
At the material time, ECIL was an oil retailing company engaged in selling various oil products to its customers.
One of the charges alleges that Lau and Lam falsely represented to the Hong Kong Branch of China Everbright Bank Company Limited (CEBHK) that there was a genuine transaction between ECIL and Shenzhen Chuancheng Industrial Development Company Limited (SCID) as evidenced by various documents.
Lau and Lam are alleged to have submitted those documents, including a tanker bill of landing, an invoice issued by ECIL and a cargo receipt issued by SCID, to CEBHK in support of an application for processing export transaction, and with intent to defraud, induced CEBHK to approve the application and release a sum of over US$7.8 million to ECIL in respect of a L/C.
Six other similar charges allege that Lau falsely represented to CEBHK that there were genuine business transactions between ECIL and SCID / Shenzhen Qianhai Chuancheng Petrochemical Trading Company Limited as evidenced by various documents.
Lau is alleged to have submitted those documents, including tanker bills of lading and cargo receipts, to CEBHK in support of six applications for processing export transaction, and with intent to defraud, induced CEBHK to approve the applications and release sums of over US$42.7 million to ECIL in respect of six L/Cs.
The remaining charge alleges Lau of having in his possession poison included in Part I of the Poisons List, namely a total of 52 tablets containing sildenafil, a key ingredient of “Viagra”.
The above alleged offences took place between November 2013 and January 2014.
CEBHK had rendered full assistance to the ICAC during its investigation.
Lau Wai-ho, 52, operator of Ever Crown (China) Investment Limited (ECIL), and Lam Wing-yu, 38, shipping clerk of ECIL, who were charged yesterday (January 19), face a joint charge of fraud, contrary to Section 16A of the Theft Ordinance. Lau alone faces six similar fraud charges.
Lau further faces one charge of possession of poison included in Part I of the Poisons List, contrary to Sections 23(1) and 33(1) of the Pharmacy and Poisons Ordinance.
The defendants, currently on ICAC bail, will appear at the Eastern Magistracy tomorrow (January 21) for transfer to the District Court for plea.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offences.
At the material time, ECIL was an oil retailing company engaged in selling various oil products to its customers.
One of the charges alleges that Lau and Lam falsely represented to the Hong Kong Branch of China Everbright Bank Company Limited (CEBHK) that there was a genuine transaction between ECIL and Shenzhen Chuancheng Industrial Development Company Limited (SCID) as evidenced by various documents.
Lau and Lam are alleged to have submitted those documents, including a tanker bill of landing, an invoice issued by ECIL and a cargo receipt issued by SCID, to CEBHK in support of an application for processing export transaction, and with intent to defraud, induced CEBHK to approve the application and release a sum of over US$7.8 million to ECIL in respect of a L/C.
Six other similar charges allege that Lau falsely represented to CEBHK that there were genuine business transactions between ECIL and SCID / Shenzhen Qianhai Chuancheng Petrochemical Trading Company Limited as evidenced by various documents.
Lau is alleged to have submitted those documents, including tanker bills of lading and cargo receipts, to CEBHK in support of six applications for processing export transaction, and with intent to defraud, induced CEBHK to approve the applications and release sums of over US$42.7 million to ECIL in respect of six L/Cs.
The remaining charge alleges Lau of having in his possession poison included in Part I of the Poisons List, namely a total of 52 tablets containing sildenafil, a key ingredient of “Viagra”.
The above alleged offences took place between November 2013 and January 2014.
CEBHK had rendered full assistance to the ICAC during its investigation.