Ex-bank managers charged with bribery and fraud
2015-2-17
Two former wealth management managers of a bank have been charged by the ICAC with offering up to $215,000 in bribes to a former associate relationship manager of the bank for referring clients, while the trio is also accused of deceiving commissions from the bank by fraudulent means.
Chau Hang-yu (formerly known as Aixingero Chat-yung), 29, former associate relationship manager of the Hongkong and Shanghai Banking Corporation Limited (HSBC); Steve Chow Chun-ying, 31, and Li Lee, 27, both former wealth management managers of HSBC, who were charged yesterday (Monday), face a total of 13 charges.
Chau and Chow face a joint charge of fraud, contrary to Section 16A of the Theft Ordinance. Chau and Chow further face three counts and one count of fraud respectively, while Li alone faces five similar offences.
Chow has been charged with one count of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance, while Li faces two similar offences.
The defendants will appear at the Eastern Magistracy tomorrow (Wednesday) for transfer to the District Court for plea.
At the material time, Chau, Chow and Li were employed by HSBC. Among other duties, they were responsible for promoting and selling various investment and insurance products of HSBC to its clients.
One of the charges alleges that Chau and Chow falsely represented to HSBC that Chow was the sales staff in respect to a unit trust subscription order made by a client of Chau, and with intent to defraud, induced HSBC to release commissions by way of sales incentives to Chow.
Another charge alleges that Chau, with intent to defraud, induced another client to subscribe a unit trust investment fund with $499,999 by falsely claiming that HSBC only allowed its client to subscribe a unit trust product with the investment amount of less than $500,000, causing him to pay a higher rate of subscription fee at 2.75 per cent.
Two other charges allege Chau of falsely representing to HSBC that the client had subscribed for the unit trust investment fund with a total sum of over $6.4 million by 14 subscription orders, and with intent to defraud, induced HSBC to release commissions by way of sales incentives to her.
Chow faces one count of falsely representing to HSBC that he was the sales staff in respect of the unit trust subscription order made by the client of Chau, and with intent to defraud, induced HSBC to release commissions by way of sales incentives to Chow.
Li faces a similar offence of falsely representing to HSBC that she was the sales staff in respect of five unit trust subscription orders made by the client of Chau, and with intent to defraud, induced HSBC to release commissions by way of sales incentives to Li.
Four other charges allege Li of falsely representing to HSBC that she was the sales staff in respect of an insurance policy application and six unit trust subscription orders made by four other clients of Chau, and with intent to defraud, induced HSBC to release commissions by way of sales incentives to Li.
As a result of the above false representation, HSBC was allegedly induced to release commissions totalling over $55,000, $72,000 and $118,000 to Chau, Chow and Li respectively.
Chow also faces one count of offering $100,000 in bribes to Chau as rewards for referring clients to Chow, while Li alone faces two counts of offering $55,000 and around $30,000 to $60,000 as bribes to Chau for the same purpose.
The above alleged offences of fraud and bribery took place between March and November 2012.
The case arose from a corruption complaint. HSBC has rendered full assistance to the ICAC during its investigation.
The defendants have been released on ICAC bail, pending their court appearance tomorrow.
Chau Hang-yu (formerly known as Aixingero Chat-yung), 29, former associate relationship manager of the Hongkong and Shanghai Banking Corporation Limited (HSBC); Steve Chow Chun-ying, 31, and Li Lee, 27, both former wealth management managers of HSBC, who were charged yesterday (Monday), face a total of 13 charges.
Chau and Chow face a joint charge of fraud, contrary to Section 16A of the Theft Ordinance. Chau and Chow further face three counts and one count of fraud respectively, while Li alone faces five similar offences.
Chow has been charged with one count of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance, while Li faces two similar offences.
The defendants will appear at the Eastern Magistracy tomorrow (Wednesday) for transfer to the District Court for plea.
At the material time, Chau, Chow and Li were employed by HSBC. Among other duties, they were responsible for promoting and selling various investment and insurance products of HSBC to its clients.
One of the charges alleges that Chau and Chow falsely represented to HSBC that Chow was the sales staff in respect to a unit trust subscription order made by a client of Chau, and with intent to defraud, induced HSBC to release commissions by way of sales incentives to Chow.
Another charge alleges that Chau, with intent to defraud, induced another client to subscribe a unit trust investment fund with $499,999 by falsely claiming that HSBC only allowed its client to subscribe a unit trust product with the investment amount of less than $500,000, causing him to pay a higher rate of subscription fee at 2.75 per cent.
Two other charges allege Chau of falsely representing to HSBC that the client had subscribed for the unit trust investment fund with a total sum of over $6.4 million by 14 subscription orders, and with intent to defraud, induced HSBC to release commissions by way of sales incentives to her.
Chow faces one count of falsely representing to HSBC that he was the sales staff in respect of the unit trust subscription order made by the client of Chau, and with intent to defraud, induced HSBC to release commissions by way of sales incentives to Chow.
Li faces a similar offence of falsely representing to HSBC that she was the sales staff in respect of five unit trust subscription orders made by the client of Chau, and with intent to defraud, induced HSBC to release commissions by way of sales incentives to Li.
Four other charges allege Li of falsely representing to HSBC that she was the sales staff in respect of an insurance policy application and six unit trust subscription orders made by four other clients of Chau, and with intent to defraud, induced HSBC to release commissions by way of sales incentives to Li.
As a result of the above false representation, HSBC was allegedly induced to release commissions totalling over $55,000, $72,000 and $118,000 to Chau, Chow and Li respectively.
Chow also faces one count of offering $100,000 in bribes to Chau as rewards for referring clients to Chow, while Li alone faces two counts of offering $55,000 and around $30,000 to $60,000 as bribes to Chau for the same purpose.
The above alleged offences of fraud and bribery took place between March and November 2012.
The case arose from a corruption complaint. HSBC has rendered full assistance to the ICAC during its investigation.
The defendants have been released on ICAC bail, pending their court appearance tomorrow.