Judge orders the confiscation of $1.46m from former senior bank executive
2019-8-20
A judge today (August 20) ordered the confiscation of about $1.46 million from a former senior bank executive convicted of accepting the sum, being bribes, from a bank client in an ICAC case.
Tu Bing, 42, former associate director of UBS AG Hong Kong Branch (UBS Hong Kong Branch), was found guilty of one count 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, at the District Court on October 27, 2017.
On November 16, 2017, Tu was sentenced to three and a half years’ imprisonment. Before the sentence was imposed on Tu, the prosecution applied to the court for an order to confiscate the bribes accepted by Tu under Section 8 of the Organised and Serious Crimes Ordinance. However, the confiscation order proceedings were held in abeyance pending the outcome of Tu’s appeal against conviction.
Following the conclusion of the appeal proceedings, the confiscation order application was reinstated. Pursuant to the application, Judge Gary Lam Kar-yan today granted the order against Tu for the confiscation of the bribes totalling about $1.46 million, and gave Tu six months to make the payment.
The judge ordered that Tu be required to serve an additional term of 30 months’ imprisonment should he be in default of the confiscation order.
The court heard that at the material time, Tu was an associate director of Global Wealth Management and Business Banking of UBS Hong Kong Branch. He was responsible for managing investment portfolios of clients.
In May 2007, Tu convinced a client of UBS Hong Kong Branch to invest in Hong Kong stocks. The client, a Mainlander living in Shenzhen, relied entirely on Tu to manage his investments.
At a meeting at a hotel in Shenzhen, Tu told the client that it was a trade practice for the latter to pay him 20 per cent of the realised profits from investments. The client understood that the 20 per cent was “handling and intelligence fees”, and acceded to Tu’s request.
Between June and July 2007, Tu sent the client two emails together with trading summaries detailing a profit of over $3,090,000 earned from trading in stocks. At the end of the trading summaries, there was a remark indicating “20 per cent” or over $618,000.
After Tu reminded the client of the “handling and intelligence fees”, the client signed a blank cheque for over $610,000 and gave it to him. The cheque was deposited into the bank account of Tu’s younger brother, the court heard.
In September 2007, Tu further sent the client two other emails together with trading summaries detailing another profit of about $4.25 million earned from trading in stocks.
Although Tu did not make a remark of “20 per cent” on the trade summaries, the client understood that he had to pay about $850,000 to Tu.
One month later, the client gave a signed blank cheque for that amount to Tu when they met at the hotel in Shenzhen. The cheque was deposited into the bank account of Tu’s younger brother.
In December 2007, two sums of money, namely $1 million and $400,000, were transferred from the bank account of Tu’s younger brother to that of Tu, the court was told.
The prosecution was today represented by Public Prosecutor Human Lam, assisted by ICAC officer Keith Kwok.
Tu Bing, 42, former associate director of UBS AG Hong Kong Branch (UBS Hong Kong Branch), was found guilty of one count 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, at the District Court on October 27, 2017.
On November 16, 2017, Tu was sentenced to three and a half years’ imprisonment. Before the sentence was imposed on Tu, the prosecution applied to the court for an order to confiscate the bribes accepted by Tu under Section 8 of the Organised and Serious Crimes Ordinance. However, the confiscation order proceedings were held in abeyance pending the outcome of Tu’s appeal against conviction.
Following the conclusion of the appeal proceedings, the confiscation order application was reinstated. Pursuant to the application, Judge Gary Lam Kar-yan today granted the order against Tu for the confiscation of the bribes totalling about $1.46 million, and gave Tu six months to make the payment.
The judge ordered that Tu be required to serve an additional term of 30 months’ imprisonment should he be in default of the confiscation order.
The court heard that at the material time, Tu was an associate director of Global Wealth Management and Business Banking of UBS Hong Kong Branch. He was responsible for managing investment portfolios of clients.
In May 2007, Tu convinced a client of UBS Hong Kong Branch to invest in Hong Kong stocks. The client, a Mainlander living in Shenzhen, relied entirely on Tu to manage his investments.
At a meeting at a hotel in Shenzhen, Tu told the client that it was a trade practice for the latter to pay him 20 per cent of the realised profits from investments. The client understood that the 20 per cent was “handling and intelligence fees”, and acceded to Tu’s request.
Between June and July 2007, Tu sent the client two emails together with trading summaries detailing a profit of over $3,090,000 earned from trading in stocks. At the end of the trading summaries, there was a remark indicating “20 per cent” or over $618,000.
After Tu reminded the client of the “handling and intelligence fees”, the client signed a blank cheque for over $610,000 and gave it to him. The cheque was deposited into the bank account of Tu’s younger brother, the court heard.
In September 2007, Tu further sent the client two other emails together with trading summaries detailing another profit of about $4.25 million earned from trading in stocks.
Although Tu did not make a remark of “20 per cent” on the trade summaries, the client understood that he had to pay about $850,000 to Tu.
One month later, the client gave a signed blank cheque for that amount to Tu when they met at the hotel in Shenzhen. The cheque was deposited into the bank account of Tu’s younger brother.
In December 2007, two sums of money, namely $1 million and $400,000, were transferred from the bank account of Tu’s younger brother to that of Tu, the court was told.
The prosecution was today represented by Public Prosecutor Human Lam, assisted by ICAC officer Keith Kwok.