Duo jailed for $3.3m loans fraud and money laundering
2015-2-16
The proprietor and a former merchandiser of a trading company, charged by the ICAC, were today (Monday) sentenced to jail terms up to 28 months at the District Court for deceiving loans totalling over $3.3 million from a bank and laundering those crime proceeds respectively.
Chow Chin-fan, 51, proprietor of Honest (HK) Manufacturing Limited (HML), received a jail term of 28 months, while Fok Yuk-kei, 25, former merchandiser of HML, was jailed for 20 months.
Chow earlier pleaded guilty to six counts of fraud, contrary to Section 16A(1) of the Theft Ordinance, while Fok pleaded guilty to one count of dealing with property known or believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, Chow and Fok were the proprietor and a merchandiser of HML respectively. Chow was also the sole director cum shareholder of Smooth Chance Limited (SCL), while Fok was the sole director cum shareholder of Joy Diamond Development Limited (JDDL). HML and SCL operated shops selling premiums and gifts in tourist areas.
Between October 3, 2011 and February 3, 3012, Chow applied to Standard Chartered Bank (Hong Kong) Limited (SCB) for six import invoice financing loans totalling over $3.3 million on behalf of HML.
To support the loan applications, Chow submitted to the bank six sets of invoices and delivery notes issued by JDDL to purportedly show that JDDL had sold and delivered various merchandises to HML.
As a result, SCB approved the loan applications and transferred a total of over $3.3 million to the bank account of JDDL on six occasions to settle the invoices.
The court heard that the transactions related to the six loans were fraudulent, and Chow had never disclosed to SCB that Fok, a merchandiser of HML, was the sole director cum shareholder of JDDL, the supplier in question.
After SCB released the six loans totalling over $3.3 million into the bank account of JDDL, Fok withdrew the monies, and gave it to Chow in cash or credited them into the bank accounts of HML, SCL or Chow.
Fok dealt with the above sums of over $3.3 million, knowing or having reasonable grounds to believe that the sums of monies represented the proceeds of an indictable offence.
SCB had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by Senior Public Prosecutor Matthew Leung, assisted by ICAC officer Berek Fung.
Chow Chin-fan, 51, proprietor of Honest (HK) Manufacturing Limited (HML), received a jail term of 28 months, while Fok Yuk-kei, 25, former merchandiser of HML, was jailed for 20 months.
Chow earlier pleaded guilty to six counts of fraud, contrary to Section 16A(1) of the Theft Ordinance, while Fok pleaded guilty to one count of dealing with property known or believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, Chow and Fok were the proprietor and a merchandiser of HML respectively. Chow was also the sole director cum shareholder of Smooth Chance Limited (SCL), while Fok was the sole director cum shareholder of Joy Diamond Development Limited (JDDL). HML and SCL operated shops selling premiums and gifts in tourist areas.
Between October 3, 2011 and February 3, 3012, Chow applied to Standard Chartered Bank (Hong Kong) Limited (SCB) for six import invoice financing loans totalling over $3.3 million on behalf of HML.
To support the loan applications, Chow submitted to the bank six sets of invoices and delivery notes issued by JDDL to purportedly show that JDDL had sold and delivered various merchandises to HML.
As a result, SCB approved the loan applications and transferred a total of over $3.3 million to the bank account of JDDL on six occasions to settle the invoices.
The court heard that the transactions related to the six loans were fraudulent, and Chow had never disclosed to SCB that Fok, a merchandiser of HML, was the sole director cum shareholder of JDDL, the supplier in question.
After SCB released the six loans totalling over $3.3 million into the bank account of JDDL, Fok withdrew the monies, and gave it to Chow in cash or credited them into the bank accounts of HML, SCL or Chow.
Fok dealt with the above sums of over $3.3 million, knowing or having reasonable grounds to believe that the sums of monies represented the proceeds of an indictable offence.
SCB had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by Senior Public Prosecutor Matthew Leung, assisted by ICAC officer Berek Fung.