Ex-research head jailed for accepting $100,000 bribe
2015-2-25
The former head of research department of a securities company, charged by the ICAC, was today (Wednesday) sentenced to one year’s imprisonment at the Eastern Magistracy after being convicted of accepting a bribe of $100,000 for writing a favourable valuation report on a listed company.
Gong Yueyue, 36, formerly employed by Orient Finance Holdings (Hong Kong) Limited (Orient Finance), was today found guilty of one count of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance.
Magistrate So Wai-tak said by accepting a bribe for writing a favourable valuable report on a listed company, the defendant did not comply with the policy of the securities company nor did he meet the standard required of him as a professional.
The magistrate also ordered that the bribe of $100,000 accepted by the defendant be confiscated.
The defendant made an application for bail, pending an appeal. But his application was rejected by the magistrate.
The court heard that at the material time, the defendant was the head of research department of Orient Finance. He was responsible for compiling and publishing valuation reports on listed companies.
In late 2013, an associate of the defendant requested him to compile a valuation report on listed China Household Holdings Limited (CHH).
After acceding to the request, the defendant arranged for his subordinate, a researcher of Orient Finance, to help him compile the valuation report.
Under the defendant’s supervision, the researcher started to compile the valuation report. They initially forecast that the target share price of CHH was between $1.8 and $2.0.
The court heard that between January and March 2014, the researcher of Orient Finance sent three draft valuation reports on CHH to the defendant.
The defendant instructed the researcher of Orient Finance to send the draft valuation reports to the associate, knowing that the associate would show them to the management of CHH.
The associate then suggested that the defendant should revise the target share price of CHH to $2.06, saying that it was the decision of the management of CHH after sighting the draft reports. The defendant acceded to the suggestion.
As a result, the target share price of CHH in the final version of the valuation report was $2.06 when it was published in the name of the defendant on March 19, 2014.
On the same day when the valuation report was published, the defendant met the associate at a café in Central. At the meeting, the associate passed an envelope containing $100,000 in cash to the defendant.
After receiving the bribe, the defendant was arrested by ICAC officers, the court was told.
Orient Finance had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Phillip Ross, assisted by ICAC officer Eric Siu.
Gong Yueyue, 36, formerly employed by Orient Finance Holdings (Hong Kong) Limited (Orient Finance), was today found guilty of one count of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance.
Magistrate So Wai-tak said by accepting a bribe for writing a favourable valuable report on a listed company, the defendant did not comply with the policy of the securities company nor did he meet the standard required of him as a professional.
The magistrate also ordered that the bribe of $100,000 accepted by the defendant be confiscated.
The defendant made an application for bail, pending an appeal. But his application was rejected by the magistrate.
The court heard that at the material time, the defendant was the head of research department of Orient Finance. He was responsible for compiling and publishing valuation reports on listed companies.
In late 2013, an associate of the defendant requested him to compile a valuation report on listed China Household Holdings Limited (CHH).
After acceding to the request, the defendant arranged for his subordinate, a researcher of Orient Finance, to help him compile the valuation report.
Under the defendant’s supervision, the researcher started to compile the valuation report. They initially forecast that the target share price of CHH was between $1.8 and $2.0.
The court heard that between January and March 2014, the researcher of Orient Finance sent three draft valuation reports on CHH to the defendant.
The defendant instructed the researcher of Orient Finance to send the draft valuation reports to the associate, knowing that the associate would show them to the management of CHH.
The associate then suggested that the defendant should revise the target share price of CHH to $2.06, saying that it was the decision of the management of CHH after sighting the draft reports. The defendant acceded to the suggestion.
As a result, the target share price of CHH in the final version of the valuation report was $2.06 when it was published in the name of the defendant on March 19, 2014.
On the same day when the valuation report was published, the defendant met the associate at a café in Central. At the meeting, the associate passed an envelope containing $100,000 in cash to the defendant.
After receiving the bribe, the defendant was arrested by ICAC officers, the court was told.
Orient Finance had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Phillip Ross, assisted by ICAC officer Eric Siu.