Duo in court for defrauding $20m mortgage loans and laundering crime proceeds
2018-5-10
A former legal clerk of a solicitors firm appeared in the Eastern Magistracy today (May 10) after being charged by the ICAC with defrauding two licensed money lenders of two mortgage loans totalling $20 million, while the former legal clerk and his associate jointly faced a charge of laundering $10 million in crime proceeds being one of the loans.
The defendants, who were charged on Tuesday (May 8), were Kevin So Kam-wai, 41, former legal clerk of the now defunct K.L. Leung & Co. (KLL-solicitors), and his associate Jacky So Yun-yue, 49, former legal executive of KLL-solicitors.
Kevin So alone faced three charges – two of fraud, contrary to Section 16A(1) of the Theft Ordinance, and one of using copies of false instruments, contrary to Section 74 of the Crimes Ordinance.
Kevin So and Jacky So faced a joint charge of dealing with property known or believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organised and Serious Crimes Ordinance.
No plea was taken today. Principal Magistrate Mr Peter Law Tak-chuen transferred the case to the District Court for plea on May 31.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offences.
At the material time, Kevin So and Jacky So were legal clerk and legal executive of KLL-solicitors respectively. Jacky So was also a director of Chilly Associates Limited (CAL), an offshore company.
In February 2012, two buyers, who were a couple, entered into an agreement with a developer to acquire a flat of a private residential building in Rock Hill Street, Kennedy Town, and used a company to hold the flat (the property holding company). Kevin So was tasked to handle the transaction.
One of the charges alleged that between November 1 and 25, 2014, Kevin So falsely represented to a licensed money lender that the property holding company intended to apply for a loan of $10 million to be secured against the flat; had authorised him to act on its behalf to apply for the loan; and had authorised CAL to receive the loan on its behalf, and with intent to defraud, induced the licensed money lender to grant the loan to CAL, which resulted in benefit to him, Jacky So and CAL or prejudice to the licensed money lender and the company.
The joint charge alleged that between November 17 and 25, 2014, Kevin So and Jacky So dealt with the loan of $10 million in an account maintained with a bank held in the name of CAL, knowing or having reasonable grounds to believe that the loan represented the proceeds of an indictable offence.
Another charge alleged that on March 19, 2015, Kevin So used copies of false instruments, namely two letters purportedly issued by the property holding company and one of the buyers respectively for instructing another solicitors firm to act on their behalf in a High Court civil proceeding, with the intention of inducing the solicitors firm to accept them as copies of genuine instruments.
The remaining charge alleged that between February 1 and June 19, 2015, Kevin So falsely represented to another licensed money lender that the property holding company intended to apply for a loan of $10 million to be secured against the flat; it had authorised him to act on its behalf to apply for the loan; and a third solicitors firm had been authorised to receive the loan on behalf of that company, and with intent to defraud, induced the licensed money lender to grant the loan to the third solicitors firm, which resulted in benefit to that solicitors firm or prejudice to the licensed money lender or the company.
Kevin So was granted cash bail of $80,000, while Jacky So was on cash bail of $50,000. They were ordered not to contact prosecution witnesses directly or indirectly.
The then owner of KLL-solicitors had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by ICAC officer Zacky Chan.
The defendants, who were charged on Tuesday (May 8), were Kevin So Kam-wai, 41, former legal clerk of the now defunct K.L. Leung & Co. (KLL-solicitors), and his associate Jacky So Yun-yue, 49, former legal executive of KLL-solicitors.
Kevin So alone faced three charges – two of fraud, contrary to Section 16A(1) of the Theft Ordinance, and one of using copies of false instruments, contrary to Section 74 of the Crimes Ordinance.
Kevin So and Jacky So faced a joint charge of dealing with property known or believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organised and Serious Crimes Ordinance.
No plea was taken today. Principal Magistrate Mr Peter Law Tak-chuen transferred the case to the District Court for plea on May 31.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offences.
At the material time, Kevin So and Jacky So were legal clerk and legal executive of KLL-solicitors respectively. Jacky So was also a director of Chilly Associates Limited (CAL), an offshore company.
In February 2012, two buyers, who were a couple, entered into an agreement with a developer to acquire a flat of a private residential building in Rock Hill Street, Kennedy Town, and used a company to hold the flat (the property holding company). Kevin So was tasked to handle the transaction.
One of the charges alleged that between November 1 and 25, 2014, Kevin So falsely represented to a licensed money lender that the property holding company intended to apply for a loan of $10 million to be secured against the flat; had authorised him to act on its behalf to apply for the loan; and had authorised CAL to receive the loan on its behalf, and with intent to defraud, induced the licensed money lender to grant the loan to CAL, which resulted in benefit to him, Jacky So and CAL or prejudice to the licensed money lender and the company.
The joint charge alleged that between November 17 and 25, 2014, Kevin So and Jacky So dealt with the loan of $10 million in an account maintained with a bank held in the name of CAL, knowing or having reasonable grounds to believe that the loan represented the proceeds of an indictable offence.
Another charge alleged that on March 19, 2015, Kevin So used copies of false instruments, namely two letters purportedly issued by the property holding company and one of the buyers respectively for instructing another solicitors firm to act on their behalf in a High Court civil proceeding, with the intention of inducing the solicitors firm to accept them as copies of genuine instruments.
The remaining charge alleged that between February 1 and June 19, 2015, Kevin So falsely represented to another licensed money lender that the property holding company intended to apply for a loan of $10 million to be secured against the flat; it had authorised him to act on its behalf to apply for the loan; and a third solicitors firm had been authorised to receive the loan on behalf of that company, and with intent to defraud, induced the licensed money lender to grant the loan to the third solicitors firm, which resulted in benefit to that solicitors firm or prejudice to the licensed money lender or the company.
Kevin So was granted cash bail of $80,000, while Jacky So was on cash bail of $50,000. They were ordered not to contact prosecution witnesses directly or indirectly.
The then owner of KLL-solicitors had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by ICAC officer Zacky Chan.