Ex-director charged with fraud over diverting $75m watch component business
2019-4-8
A former director of a watch component manufacturer has been charged by the ICAC with fraud by making a false representation to another watch company so as to divert business amounting to over $75 million from the manufacturer to a trading company controlled by him and his associate.
Tse Tin, 60, former director-cum-shareholder of Tak Ming Metal Ware Factory Company Limited (Tak Ming), who was charged last Thursday (April 4), faces a charge of fraud, contrary to Section 16A of the Theft Ordinance.
The defendant will appear at the West Kowloon Magistracy tomorrow (April 9) for mention pending transfer 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, the defendant was the director-cum-shareholder of Tak Ming, a manufacturer of metal watch bands and bracelets. Upon the defendant’s request, his associate set up a trading company of watch components in April 2008, and became its director-cum-shareholder. The trading company was under their control.
Sunciti Manufactures Limited (SML), a subsidiary of Citizen Watch Company Limited (Citizen), had placed orders for metal watch bracelets for Citizen with Tak Ming since 2003.
The charge alleges that between April 10, 2008 and August 31, 2016, the defendant and his associate:
(i) falsely represented to two directors of SML that the trading company could supply metal watch bands or bracelets manufactured by Tak Ming to SML at the same price as in the case where SML placed purchase orders for the same products directly with Tak Ming;
(ii) diverted 1,017 purchase orders of SML for such products in the total invoiced amount of over $75 million from Tak Ming to the trading company;
(iii) failed to disclose the defendant’s interest in the trading company to Tak Ming and SML;
(iv) caused the trading company to supply the products to SML as per the purchase orders; and
(v) caused the trading company to obtain the products from Tak Ming for a total invoiced amount of over $68 million.
It was alleged that with intend to defraud, the defendant and his associate induced SML to pay over $75 million to the trading company for the products supplied by Tak Ming, which resulted either in benefit to them or prejudice to Tak Ming, SML or Citizen.
Had Tak Ming known the defendant’s interest in the trading company, Tak Ming would not accept the purchase orders from it. Should SML be aware that the product prices offered by the trading company were in fact higher than that offered by Tak Ming, SML would not have agreed to place purchase orders with it.
Tak Ming and SML have rendered full assistance to the ICAC during its investigation into the case.
The defendant has been released on ICAC bail, pending his court appearance tomorrow.
Tse Tin, 60, former director-cum-shareholder of Tak Ming Metal Ware Factory Company Limited (Tak Ming), who was charged last Thursday (April 4), faces a charge of fraud, contrary to Section 16A of the Theft Ordinance.
The defendant will appear at the West Kowloon Magistracy tomorrow (April 9) for mention pending transfer 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, the defendant was the director-cum-shareholder of Tak Ming, a manufacturer of metal watch bands and bracelets. Upon the defendant’s request, his associate set up a trading company of watch components in April 2008, and became its director-cum-shareholder. The trading company was under their control.
Sunciti Manufactures Limited (SML), a subsidiary of Citizen Watch Company Limited (Citizen), had placed orders for metal watch bracelets for Citizen with Tak Ming since 2003.
The charge alleges that between April 10, 2008 and August 31, 2016, the defendant and his associate:
(i) falsely represented to two directors of SML that the trading company could supply metal watch bands or bracelets manufactured by Tak Ming to SML at the same price as in the case where SML placed purchase orders for the same products directly with Tak Ming;
(ii) diverted 1,017 purchase orders of SML for such products in the total invoiced amount of over $75 million from Tak Ming to the trading company;
(iii) failed to disclose the defendant’s interest in the trading company to Tak Ming and SML;
(iv) caused the trading company to supply the products to SML as per the purchase orders; and
(v) caused the trading company to obtain the products from Tak Ming for a total invoiced amount of over $68 million.
It was alleged that with intend to defraud, the defendant and his associate induced SML to pay over $75 million to the trading company for the products supplied by Tak Ming, which resulted either in benefit to them or prejudice to Tak Ming, SML or Citizen.
Had Tak Ming known the defendant’s interest in the trading company, Tak Ming would not accept the purchase orders from it. Should SML be aware that the product prices offered by the trading company were in fact higher than that offered by Tak Ming, SML would not have agreed to place purchase orders with it.
Tak Ming and SML have rendered full assistance to the ICAC during its investigation into the case.
The defendant has been released on ICAC bail, pending his court appearance tomorrow.