Ex-financial controller of listed company charged with $2.5m bribery and fraud
2019-3-15
A former financial controller of a listed company has been charged by the ICAC today (March 15) with conspiracy to accept an illegal rebate of over $580,000 for engaging an accounting firm to provide services, and defrauding the listed company of more than $2 million by outsourcing other services to a consultant firm without disclosing his interests in it.
Lau Ka-chung, 43, former financial controller cum company secretary of Southeast Asia Properties & Finance Limited (SEA), faces two charges – one of conspiracy for an agent to accept advantages, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance, and one of fraud, contrary to Section 16A of the Theft Ordinance.
The defendant will appear at the Kowloon City Magistracy next Tuesday (March 19) for transfer to the District Court for plea.
At the material time, the defendant was the financial controller cum company secretary of SEA. He was the head of its Accounts Department, which handled all accounting and financial matters of SEA and its subsidiaries.
On June 19, 2015, the defendant established Wishful Bright Enterprise Consultancy Limited (WBE) and became its sole director cum shareholder.
One of the charges alleges that between May 5, 2015 and June 8, 2016, the defendant conspired with a freelance accountant for the defendant to, without lawful authority or reasonable excuse, accept from the accounting firm a rebate totalling over $580,000 as a reward for causing SEA and its subsidiary to engage the firm to provide internal control review, taxation, financial advisory and consultancy services.
ICAC enquiries revealed that the accounting firm was owned by the freelance accountant, an acquaintance of the defendant, and SEA and its subsidiaries paid a total sum of $754,000 to the firm for the services.
The other charge alleges that between June 27, 2015 and October 26, 2016, the defendant failed to disclose to SEA his interests in WBE while he was an employee of SEA and was under a duty to make full disclosure of any existing or potential conflict of interest to SEA, and with intent to defraud, induced SEA and its subsidiaries to engage WBE to provide accounting, taxation, research, financial advisory and consultancy services, which resulted in benefit to WBE or prejudice to SEA and its subsidiaries.
As a result, SEA and its subsidiaries paid a total sum of over $2 million to WBE for the services. Had the chairman of SEA known that the defendant was the director of WBE or held any interest in it, he would not have allowed the engagement of WBE and settled payments to it.
SEA has rendered full assistance to the ICAC during its investigation into the case.
The defendant has been released on ICAC bail, pending his court appearance next Tuesday.
Lau Ka-chung, 43, former financial controller cum company secretary of Southeast Asia Properties & Finance Limited (SEA), faces two charges – one of conspiracy for an agent to accept advantages, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance, and one of fraud, contrary to Section 16A of the Theft Ordinance.
The defendant will appear at the Kowloon City Magistracy next Tuesday (March 19) for transfer to the District Court for plea.
At the material time, the defendant was the financial controller cum company secretary of SEA. He was the head of its Accounts Department, which handled all accounting and financial matters of SEA and its subsidiaries.
On June 19, 2015, the defendant established Wishful Bright Enterprise Consultancy Limited (WBE) and became its sole director cum shareholder.
One of the charges alleges that between May 5, 2015 and June 8, 2016, the defendant conspired with a freelance accountant for the defendant to, without lawful authority or reasonable excuse, accept from the accounting firm a rebate totalling over $580,000 as a reward for causing SEA and its subsidiary to engage the firm to provide internal control review, taxation, financial advisory and consultancy services.
ICAC enquiries revealed that the accounting firm was owned by the freelance accountant, an acquaintance of the defendant, and SEA and its subsidiaries paid a total sum of $754,000 to the firm for the services.
The other charge alleges that between June 27, 2015 and October 26, 2016, the defendant failed to disclose to SEA his interests in WBE while he was an employee of SEA and was under a duty to make full disclosure of any existing or potential conflict of interest to SEA, and with intent to defraud, induced SEA and its subsidiaries to engage WBE to provide accounting, taxation, research, financial advisory and consultancy services, which resulted in benefit to WBE or prejudice to SEA and its subsidiaries.
As a result, SEA and its subsidiaries paid a total sum of over $2 million to WBE for the services. Had the chairman of SEA known that the defendant was the director of WBE or held any interest in it, he would not have allowed the engagement of WBE and settled payments to it.
SEA has rendered full assistance to the ICAC during its investigation into the case.
The defendant has been released on ICAC bail, pending his court appearance next Tuesday.