Trio charged with deceiving HK$880,000 from German importer
2019-2-18
Three former senior staff members of a subsidiary of a German electronic products importer have been charged by the ICAC with deceiving over HK$880,000 from the importer in the procurement and testing of television (TV) sets as well as reimbursement of entertainment and salary expenses.
The defendants, who were charged last Friday (February 15), are Tommy Chu king-sau, 49, former managing director of Wellon Far East Limited (Wellon); Cylem Siu King-lam, 55, former general manager of Wellon; and Kwong Kwok-on, 41, former merchandising manager of Wellon. Siu was also the sole director of Shiny Tech Development Limited (Shiny Tech).
Chu, Siu and Kwong face three joint charges – two of conspiracy to defraud, contrary to Common Law, and one of conspiracy to falsify accounts, contrary to Section 19(1)(a) of the Theft Ordinance and Section 159A of the Crimes Ordinance; and an alternative charge of conspiracy to use copies of false instruments, contrary to Sections 74 and 159A of the Crime Ordinance. Chu alone faces one count of conspiracy to falsify accounts, while Chu and Kwong jointly face a similar charge.
The defendants will appear at the Kwun Tong Magistracy tomorrow (February 19) 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, Chu was the managing director of Wellon, a subsidiary of Schmid Electronics GmbH (SEG), a German importer of electronic products, and its buying office in Asia. Siu and Kwong were recruited as general manager and merchandising manager of Wellon respectively.
One of the charges alleges that between June 8, 2009 and July 26, 2012, Chu, Siu and Kwong conspired together and with the financial manager of Wellon to defraud SEG by falsely representing that a Mainland company was the manufacturer of TV sets and spare parts ordered by SEG, and the total price of the relevant TV sets and spare parts, thereby inducing SEG to pay Wellon at an inflated price for the TV sets and spare parts.
The alternative charge alleges that between May 1 and July 26, 2012, Chu, Siu and Kwong conspired together and with the financial manager of Wellon to use copies of false commercial invoices purported to have been issued by the Mainland company, with the intention of inducing SEG to accept them as copies of genuine instruments.
Another charge alleges that between April 3 and July 23, 2012, Chu, Siu and Kwong conspired together and with the financial manager of Wellon to falsify purchase orders issued by Wellon to Shiny Tech and commercial invoices issued by Shiny Tech, which purported to show that Wellon had placed the purchase orders with Shiny Tech and Shiny Tech had supplied the TV sets and spare parts at the prices as stated in the commercial invoices to Wellon.
The fourth charge alleges that between February 18, 2010 and October 21, 2013, Chu, Siu and Kwong conspired together and with the financial manager of Wellon to defraud SEG by failing to disclose the fact that a laboratory was the actual laboratory conducting 43 electromagnetic compatibility tests, thereby inducing SEG to pay for the test reports, purported to have been issued by another company owned by Siu, at an inflated price.
The fifth charge alleges that between April 25, 2012 and July 11, 2013, Chu conspired with the financial manager of Wellon to falsify receipts and payment vouchers, which purported to be entertainment expenses incurred by Chu and/or the financial manager for the business purpose of Wellon.
The remaining charge alleges that between February 26 and October 31, 2013, Chu and Kwong conspired together and with the financial manager of Wellon and Chu’s wife to falsify payment vouchers and salary receipts, which purported to be records of wages for the work purportedly done by Chu’s wife as a part-time receptionist for Wellon. In fact, Chu’s wife did not work for Wellon.
As a result of the above alleged false representations and false accounting, Chu, Siu and Kwong had deceived over HK$880,000 from SEG in the procurement and testing of TV sets as well as reimbursement of entertainment and salary expenses.
SEG has rendered full assistance to the ICAC during its investigation into the case.
The defendants have been released on ICAC bail, pending their court appearance tomorrow.
The defendants, who were charged last Friday (February 15), are Tommy Chu king-sau, 49, former managing director of Wellon Far East Limited (Wellon); Cylem Siu King-lam, 55, former general manager of Wellon; and Kwong Kwok-on, 41, former merchandising manager of Wellon. Siu was also the sole director of Shiny Tech Development Limited (Shiny Tech).
Chu, Siu and Kwong face three joint charges – two of conspiracy to defraud, contrary to Common Law, and one of conspiracy to falsify accounts, contrary to Section 19(1)(a) of the Theft Ordinance and Section 159A of the Crimes Ordinance; and an alternative charge of conspiracy to use copies of false instruments, contrary to Sections 74 and 159A of the Crime Ordinance. Chu alone faces one count of conspiracy to falsify accounts, while Chu and Kwong jointly face a similar charge.
The defendants will appear at the Kwun Tong Magistracy tomorrow (February 19) 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, Chu was the managing director of Wellon, a subsidiary of Schmid Electronics GmbH (SEG), a German importer of electronic products, and its buying office in Asia. Siu and Kwong were recruited as general manager and merchandising manager of Wellon respectively.
One of the charges alleges that between June 8, 2009 and July 26, 2012, Chu, Siu and Kwong conspired together and with the financial manager of Wellon to defraud SEG by falsely representing that a Mainland company was the manufacturer of TV sets and spare parts ordered by SEG, and the total price of the relevant TV sets and spare parts, thereby inducing SEG to pay Wellon at an inflated price for the TV sets and spare parts.
The alternative charge alleges that between May 1 and July 26, 2012, Chu, Siu and Kwong conspired together and with the financial manager of Wellon to use copies of false commercial invoices purported to have been issued by the Mainland company, with the intention of inducing SEG to accept them as copies of genuine instruments.
Another charge alleges that between April 3 and July 23, 2012, Chu, Siu and Kwong conspired together and with the financial manager of Wellon to falsify purchase orders issued by Wellon to Shiny Tech and commercial invoices issued by Shiny Tech, which purported to show that Wellon had placed the purchase orders with Shiny Tech and Shiny Tech had supplied the TV sets and spare parts at the prices as stated in the commercial invoices to Wellon.
The fourth charge alleges that between February 18, 2010 and October 21, 2013, Chu, Siu and Kwong conspired together and with the financial manager of Wellon to defraud SEG by failing to disclose the fact that a laboratory was the actual laboratory conducting 43 electromagnetic compatibility tests, thereby inducing SEG to pay for the test reports, purported to have been issued by another company owned by Siu, at an inflated price.
The fifth charge alleges that between April 25, 2012 and July 11, 2013, Chu conspired with the financial manager of Wellon to falsify receipts and payment vouchers, which purported to be entertainment expenses incurred by Chu and/or the financial manager for the business purpose of Wellon.
The remaining charge alleges that between February 26 and October 31, 2013, Chu and Kwong conspired together and with the financial manager of Wellon and Chu’s wife to falsify payment vouchers and salary receipts, which purported to be records of wages for the work purportedly done by Chu’s wife as a part-time receptionist for Wellon. In fact, Chu’s wife did not work for Wellon.
As a result of the above alleged false representations and false accounting, Chu, Siu and Kwong had deceived over HK$880,000 from SEG in the procurement and testing of TV sets as well as reimbursement of entertainment and salary expenses.
SEG has rendered full assistance to the ICAC during its investigation into the case.
The defendants have been released on ICAC bail, pending their court appearance tomorrow.