Ex-property manager guilty of fraud over renovation project
2019-11-27
A former manager of a property management company, charged by the ICAC, was today (November 27) convicted at the Eastern Magistracy of deceiving a commercial building developer into awarding a renovation project worth over $540,000 to a contractor without obtaining proper quotations.
Hau Chi-yuen, 43, former property manager of Jones Lang LaSalle Management Services Limited (Jones Lang LaSalle), was found guilty of one count of conspiracy to defraud, contrary to Common Law.
Deputy Magistrate Mr Philip Chan Chee-fai adjourned the case to December 20 for sentence, pending a community service order report. The defendant was granted bail.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offence.
The court heard that at the material time, Hau was a property manager of Jones Lang LaSalle, which was engaged by Phoenix Property Investors (H.K.) Limited (Phoenix), the developer of Tower 535, a commercial building in Causeway Bay to provide building management service.
In 2015, Hau proposed to Phoenix to convert a check meter room into a conference room to provide more work space. In early 2016, Hau asked Lau Tai-chun, sole proprietor of Tat Shing Engineering Co. (Tat Shing) to submit a quotation for the renovation project.
After receiving Lau’s quotation in the sum of $548,300, Hau asked Lau to commence the renovation project without obtaining consent and approval from Phoenix. In March 2016, Hau further asked Lau to convert the meter room into a management office, and the renovation project was finished in mid-2017.
In October 2017, the defendant asked a building engineer of Jones Lang LaSalle under his supervision to obtain three quotations from various contractors, including Tat Shing. The building engineer was told that the renovation project must be awarded to Tat Shing.
In order to ensure that Tat Shing’s quotation appeared to be the lowest, two other contractors were asked to quote unreasonably high prices. Eventually, two quotations of $700,000 and $919,000 were received. A quotation analysis purportedly showing that Tat Shing was the lowest bidder was then prepared.
The renovation project was in fact completed by Tat Shing at a price agreed by Hau, without the consent and approval of Phoenix, before the quotations were obtained.
Lau, 63, was also charged by the ICAC for his role in the scam. He was sentenced to six weeks’ imprisonment at the Eastern Magistracy in May 2019 after pleading guilty to one count of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance.
Jones Lang LaSalle and Phoenix had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Kenny Chan, assisted by ICAC officers Jeffrey Ng and Mandy Yau.
Hau Chi-yuen, 43, former property manager of Jones Lang LaSalle Management Services Limited (Jones Lang LaSalle), was found guilty of one count of conspiracy to defraud, contrary to Common Law.
Deputy Magistrate Mr Philip Chan Chee-fai adjourned the case to December 20 for sentence, pending a community service order report. The defendant was granted bail.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offence.
The court heard that at the material time, Hau was a property manager of Jones Lang LaSalle, which was engaged by Phoenix Property Investors (H.K.) Limited (Phoenix), the developer of Tower 535, a commercial building in Causeway Bay to provide building management service.
In 2015, Hau proposed to Phoenix to convert a check meter room into a conference room to provide more work space. In early 2016, Hau asked Lau Tai-chun, sole proprietor of Tat Shing Engineering Co. (Tat Shing) to submit a quotation for the renovation project.
After receiving Lau’s quotation in the sum of $548,300, Hau asked Lau to commence the renovation project without obtaining consent and approval from Phoenix. In March 2016, Hau further asked Lau to convert the meter room into a management office, and the renovation project was finished in mid-2017.
In October 2017, the defendant asked a building engineer of Jones Lang LaSalle under his supervision to obtain three quotations from various contractors, including Tat Shing. The building engineer was told that the renovation project must be awarded to Tat Shing.
In order to ensure that Tat Shing’s quotation appeared to be the lowest, two other contractors were asked to quote unreasonably high prices. Eventually, two quotations of $700,000 and $919,000 were received. A quotation analysis purportedly showing that Tat Shing was the lowest bidder was then prepared.
The renovation project was in fact completed by Tat Shing at a price agreed by Hau, without the consent and approval of Phoenix, before the quotations were obtained.
Lau, 63, was also charged by the ICAC for his role in the scam. He was sentenced to six weeks’ imprisonment at the Eastern Magistracy in May 2019 after pleading guilty to one count of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance.
Jones Lang LaSalle and Phoenix had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Kenny Chan, assisted by ICAC officers Jeffrey Ng and Mandy Yau.