Ex-marketing executive jailed for $8.6m payments fraud
2019-6-17
A former marketing executive of a stationery trading company, charged by the ICAC, was today (June 17) sentenced to 30 months’ imprisonment at the District Court for deceiving his employers into paying over $8.6 million to a trading firm owned by his family members for products purportedly supplied by an electronics company on the Mainland.
Cheung Chi-keung, 37, former marketing executive of Nan Kang Company Limited (Nan Kang), was earlier found guilty of one count of fraud, contrary to Section 16A of the Theft Ordinance.
In convicting the defendant last Friday (June 14), Deputy Judge Cheang Kei-hong said the only irresistible inference the court could draw was that the defendant, by devising the scheme, obtained over $760,000 for his personal gains.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offence.
The court heard that at the material time, the defendant was a marketing executive of Nan Kang, a stationery trading company, which had started sourcing paper shredders and laminators with an electronics company on the Mainland since 2009. He was responsible for placing orders with and arranging payments to the electronics company.
Before 2010, all payments due to the electronics company were made to it directly by telegraphic transfer or cash. In around February 2010, the defendant told Nan Kang that the electronics company had changed its payment instruction and all payments should be made to Tung Kong Trading & Decoration Works Co. (Tung Kong).
Believing that Tung Kong was set up in Hong Kong by the electronics company, Nan Kang had paid a total sum of over $8.6 million to Tung Kong by 63 cheques to settle the outstanding payments due to the electronics company between February 2010 and November 2015.
In November 2015, the defendant suggested sourcing other products from the electronics company. Nan Kang then paid a visit to its factory and found that the electronics company no longer operated at the address stated on its invoices.
ICAC enquires revealed that Tung Kong was in fact owned by the father and the wife of the defendant. The defendant had kept five to 10 per cent of the total payment of Nan Kang made to Tung Kong during the above period, which amounted to over $760,000, the court was told.
Nan Kang had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Thomas Iu, assisted by ICAC officer Rosita Lee.
Cheung Chi-keung, 37, former marketing executive of Nan Kang Company Limited (Nan Kang), was earlier found guilty of one count of fraud, contrary to Section 16A of the Theft Ordinance.
In convicting the defendant last Friday (June 14), Deputy Judge Cheang Kei-hong said the only irresistible inference the court could draw was that the defendant, by devising the scheme, obtained over $760,000 for his personal gains.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offence.
The court heard that at the material time, the defendant was a marketing executive of Nan Kang, a stationery trading company, which had started sourcing paper shredders and laminators with an electronics company on the Mainland since 2009. He was responsible for placing orders with and arranging payments to the electronics company.
Before 2010, all payments due to the electronics company were made to it directly by telegraphic transfer or cash. In around February 2010, the defendant told Nan Kang that the electronics company had changed its payment instruction and all payments should be made to Tung Kong Trading & Decoration Works Co. (Tung Kong).
Believing that Tung Kong was set up in Hong Kong by the electronics company, Nan Kang had paid a total sum of over $8.6 million to Tung Kong by 63 cheques to settle the outstanding payments due to the electronics company between February 2010 and November 2015.
In November 2015, the defendant suggested sourcing other products from the electronics company. Nan Kang then paid a visit to its factory and found that the electronics company no longer operated at the address stated on its invoices.
ICAC enquires revealed that Tung Kong was in fact owned by the father and the wife of the defendant. The defendant had kept five to 10 per cent of the total payment of Nan Kang made to Tung Kong during the above period, which amounted to over $760,000, the court was told.
Nan Kang had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Thomas Iu, assisted by ICAC officer Rosita Lee.