SME operators charged with $31m bank loans fraud
2019-10-23
Two operators of a Small and Medium Enterprise (SME) have been charged by the ICAC today (October 23) for their alleged roles in defrauding five banks of 41 loans totalling over $31 million and banking facilities totalling $22.5 million, as well as deceiving a government department and a public body into acting as guarantors for loans and trade facilities totalling $15.8 million granted by the banks.
Irene Ng Sio-I, 44, and Wong Yim-wah, 67, both operators of Southern Flash Enterprises Limited (Southern Flash), jointly face 16 counts of conspiracy to defraud, contrary to Common Law.
The defendants will appear at the Eastern Magistracy on Friday (October 25) 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 offences, which took place between February 2010 and February 2013.
In September 2008, Ng and Wong set up Southern Flash, an SME purportedly engaged in audio equipment trading.
To finance business development of local SMEs, various banks, including DBS Bank (Hong Kong) Limited (DBSHK), Hongkong and Shanghai Banking Corporation Limited (HSBC), Industrial and Commercial Bank of China Limited (ICBC) (now known as Industrial and Commercial Bank of China (Asia) Limited), Dah Sing Bank Limited (Dah Sing Bank) and Wing Hang Bank Limited (Wing Hang) (now known as OCBC Wing Hang Bank Limited), offered different types of credit facilities and loans to SMEs.
Between 2008 and 2011, the Trade and Industry Department (TID) and the Hong Kong Mortgage Corporation Limited (HKMC) respectively launched various schemes, namely SME Loan Guarantee Scheme (SGS), Special Loan Guarantee Scheme (SpGS) and SME Financing Guarantee Scheme (SFGS), to assist SMEs to obtain credit facilities from banks by providing guarantees up to 80% of loans granted to them.
Four of the charges allege that Ng and Wong conspired together and with a de facto owner and a clerk of Southern Flash (the duo) to defraud DBSHK, HSBC, ICBC and Dah Sing Bank, by dishonestly falsely representing that supporting documents submitted by Southern Flash in relation to its applications of banking facilities were genuine.
The defendants have allegedly caused DBSHK, HSBC, ICBC and Dah Sing Bank to grant banking facilities totalling $22.5 million to Southern Flash.
Five other charges allege that Ng and Wong conspired together and with the duo to defraud the TID by dishonestly falsely representing that all the information contained in four application forms for Special Loan Guarantee under the SpGS and an application form for Working Capital Loan Guarantee under the SGS was true, accurate and complete.
The defendants have allegedly caused the TID to issue five guarantees in favour of DBSHK, HSBC and Dah Sing Bank; and to act as the guarantor for instalment loans, trade finance related facilities, overdraft facilities and term loans totalling $6.2 million granted by the three banks to Southern Flash.
Three other charges allege that Ng and Wong conspired together and with the duo to defraud the HKMC by dishonestly falsely representing that all the information contained in three application forms for the SFGS was true, accurate and complete.
The defendants have allegedly caused the HKMC to issue three guarantees in favour of ICBC and Dah Sing Bank; and to act as the guarantor for import trade facilities or term loans totalling $9.6 million granted by the two banks to Southern Flash.
The remaining four charges allege that Ng and Wong conspired together with the duo, six operators of seven purported suppliers of Southern Flash and other persons unknown to defraud DBSHK, Dah Sing Bank, ICBC and Wing Hang by dishonestly submitting supporting documents purportedly in relation to transactions with Southern Flash.
The defendants had allegedly caused DBSHK, Dah Sing Bank, ICBC and Wing Hang to grant 41 loans totalling over $31 million to Southern Flash and to release the sums directly to the seven suppliers concerned.
The TID, the HKMC and the five banks concerned have rendered full assistance to the ICAC during its investigation into the case.
The defendants have been released on ICAC bail, pending their court appearance on Friday.
Irene Ng Sio-I, 44, and Wong Yim-wah, 67, both operators of Southern Flash Enterprises Limited (Southern Flash), jointly face 16 counts of conspiracy to defraud, contrary to Common Law.
The defendants will appear at the Eastern Magistracy on Friday (October 25) 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 offences, which took place between February 2010 and February 2013.
In September 2008, Ng and Wong set up Southern Flash, an SME purportedly engaged in audio equipment trading.
To finance business development of local SMEs, various banks, including DBS Bank (Hong Kong) Limited (DBSHK), Hongkong and Shanghai Banking Corporation Limited (HSBC), Industrial and Commercial Bank of China Limited (ICBC) (now known as Industrial and Commercial Bank of China (Asia) Limited), Dah Sing Bank Limited (Dah Sing Bank) and Wing Hang Bank Limited (Wing Hang) (now known as OCBC Wing Hang Bank Limited), offered different types of credit facilities and loans to SMEs.
Between 2008 and 2011, the Trade and Industry Department (TID) and the Hong Kong Mortgage Corporation Limited (HKMC) respectively launched various schemes, namely SME Loan Guarantee Scheme (SGS), Special Loan Guarantee Scheme (SpGS) and SME Financing Guarantee Scheme (SFGS), to assist SMEs to obtain credit facilities from banks by providing guarantees up to 80% of loans granted to them.
Four of the charges allege that Ng and Wong conspired together and with a de facto owner and a clerk of Southern Flash (the duo) to defraud DBSHK, HSBC, ICBC and Dah Sing Bank, by dishonestly falsely representing that supporting documents submitted by Southern Flash in relation to its applications of banking facilities were genuine.
The defendants have allegedly caused DBSHK, HSBC, ICBC and Dah Sing Bank to grant banking facilities totalling $22.5 million to Southern Flash.
Five other charges allege that Ng and Wong conspired together and with the duo to defraud the TID by dishonestly falsely representing that all the information contained in four application forms for Special Loan Guarantee under the SpGS and an application form for Working Capital Loan Guarantee under the SGS was true, accurate and complete.
The defendants have allegedly caused the TID to issue five guarantees in favour of DBSHK, HSBC and Dah Sing Bank; and to act as the guarantor for instalment loans, trade finance related facilities, overdraft facilities and term loans totalling $6.2 million granted by the three banks to Southern Flash.
Three other charges allege that Ng and Wong conspired together and with the duo to defraud the HKMC by dishonestly falsely representing that all the information contained in three application forms for the SFGS was true, accurate and complete.
The defendants have allegedly caused the HKMC to issue three guarantees in favour of ICBC and Dah Sing Bank; and to act as the guarantor for import trade facilities or term loans totalling $9.6 million granted by the two banks to Southern Flash.
The remaining four charges allege that Ng and Wong conspired together with the duo, six operators of seven purported suppliers of Southern Flash and other persons unknown to defraud DBSHK, Dah Sing Bank, ICBC and Wing Hang by dishonestly submitting supporting documents purportedly in relation to transactions with Southern Flash.
The defendants had allegedly caused DBSHK, Dah Sing Bank, ICBC and Wing Hang to grant 41 loans totalling over $31 million to Southern Flash and to release the sums directly to the seven suppliers concerned.
The TID, the HKMC and the five banks concerned have rendered full assistance to the ICAC during its investigation into the case.
The defendants have been released on ICAC bail, pending their court appearance on Friday.