Four charged with fraud over auction of $4m small house
2019-3-27
Three serving and former senior executives of a finance company and a director of an auction company have been charged by the ICAC today (March 27) with conspiracy to defraud interested purchasers at an auction of a small house in the New Territories at a reserve price of $4 million.
Wong Lai-man, 33, senior loan officer of Ego Finance Limited (EFL), Sun Lap-kei, 49, manager of EFL, Yung Man-pik, 44, former assistant general manager of EFL; and Tsang Kit-chun, 54, sole director cum shareholder of AA Property Auctioneers Limited (AAPA), face a joint charge of conspiracy to defraud, contrary to Common Law.
The defendants will appear at the Kowloon City Magistracy on Friday (March 29) for transfer of the case to the District Court for plea.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offence.
At the material time, Wong and Sun were respectively senior loan officer and manager of EFL, a financial institution engaged in money lending business, while Yung was its former assistant general manager. Tsang was the sole director cum shareholder of AAPA, an auction firm engaged in selling real estate or properties entrusted by its customers.
The owner of the small house in Tai Po Tsai Tsuen, Sai Kung, the New Territories, had obtained various loans from EFL and pledged the property as collateral. Since he passed away in March 2015, no loan repayment had been made to EFL. As a result, EFL repossessed the property.
On January 24, 2017, EFL and AAPA entered into an agreement whereby AAPA was entrusted to sell the property by public auction at a reserve price of $4 million.
The charge alleges that between February 2 and 23, 2017, Wong, Sun, Yung and Tsang conspired together and with other unknown persons to defraud such persons who might attend the auction (interested purchasers) held for the sale and purchase of the property by dishonestly:
(i) falsely representing to the interested purchasers that the price they offered for the purchase of the property did not meet the reserve price;
(ii) inducing the interested purchasers to give up bidding for the property; and
(iii) causing the property to be sold to Wong at the price of $4 million.
ICAC enquiries revealed that one of the interested purchasers offered the last bid price higher than $4 million after four or five bids by interested purchasers at the auction held on February 15, 2017. However, Tsang withdrew the property from the auction.
The defendants have been released on ICAC bail, pending their court appearance on Friday.
Wong Lai-man, 33, senior loan officer of Ego Finance Limited (EFL), Sun Lap-kei, 49, manager of EFL, Yung Man-pik, 44, former assistant general manager of EFL; and Tsang Kit-chun, 54, sole director cum shareholder of AA Property Auctioneers Limited (AAPA), face a joint charge of conspiracy to defraud, contrary to Common Law.
The defendants will appear at the Kowloon City Magistracy on Friday (March 29) for transfer of the case to the District Court for plea.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offence.
At the material time, Wong and Sun were respectively senior loan officer and manager of EFL, a financial institution engaged in money lending business, while Yung was its former assistant general manager. Tsang was the sole director cum shareholder of AAPA, an auction firm engaged in selling real estate or properties entrusted by its customers.
The owner of the small house in Tai Po Tsai Tsuen, Sai Kung, the New Territories, had obtained various loans from EFL and pledged the property as collateral. Since he passed away in March 2015, no loan repayment had been made to EFL. As a result, EFL repossessed the property.
On January 24, 2017, EFL and AAPA entered into an agreement whereby AAPA was entrusted to sell the property by public auction at a reserve price of $4 million.
The charge alleges that between February 2 and 23, 2017, Wong, Sun, Yung and Tsang conspired together and with other unknown persons to defraud such persons who might attend the auction (interested purchasers) held for the sale and purchase of the property by dishonestly:
(i) falsely representing to the interested purchasers that the price they offered for the purchase of the property did not meet the reserve price;
(ii) inducing the interested purchasers to give up bidding for the property; and
(iii) causing the property to be sold to Wong at the price of $4 million.
ICAC enquiries revealed that one of the interested purchasers offered the last bid price higher than $4 million after four or five bids by interested purchasers at the auction held on February 15, 2017. However, Tsang withdrew the property from the auction.
The defendants have been released on ICAC bail, pending their court appearance on Friday.