Ex-employee of cable manufacturer admits fraud over $3.4m business diversion
2020-4-15
A then employee of a cable manufacturer, charged by the ICAC, admitted at the District Court today (April 15) that she had conspired with others to divert business amounting to $3.4 million to three other companies by fraudulent means.
So Ying-han, 47, former assistant account executive of Samson Electric Wire Company Limited (Samson), pleaded guilty to three counts of conspiracy to defraud, contrary to Common Law.
Judge Mr David Dufton adjourned the case to June 2 for mention and granted the defendant bail.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, the defendant was an assistant account executive of Samson, a cable manufacturer. She was responsible for selling Samson’s products to clients under the supervision of an account executive.
CT Cable Limited (CTCL) was set up by the Samson account executive and a business partner in June 2014. Ka Chun Engineering and Trading Company (Ka Chun) and Rise Engineering Company (REC) were two other companies associated with the Samson account executive.
The court heard that between mid-2012 and June 2016, the defendant conspired with the Samson account executive and others to falsely represent to Samson that another supplier had offered to supply cable products to Ka Chun and two new companies, whose names resembled CTCL and REC, at prices lower than that charged by Samson.
The defendant and the Samson account executive then suggested Samson to sell those products at the said lower prices to Ka Chun and the two new companies to secure their orders. Samson approved of the arrangement.
During the period, Samson received orders from Ka Chun, CTCL and REC for various cable products. The defendant and the Samson account executive then arranged Samson to supply those products in the total invoiced amount of about $3.4 million to the three companies at discounted prices.
As a result, Samson had undercharged at least over $820,000 in the abovementioned purchase orders.
The court heard that the defendant had then arranged REC to supply CTCL with cable products purchased from Samson.
The defendant had also told 17 clients of Samson that the cable products which they intended to purchase from Samson were out of stock, and referred them to Ka Chun and CTCL.
When interviewed under caution by ICAC officers, the defendant admitted her role in a conspiracy to divert businesses from Samson, and that she had received $150,000 from the Samson account executive for sending Samson’s clients to Ka Chun and CTCL.
Samson had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Alex Ng, assisted by ICAC officer Terence Wong.
So Ying-han, 47, former assistant account executive of Samson Electric Wire Company Limited (Samson), pleaded guilty to three counts of conspiracy to defraud, contrary to Common Law.
Judge Mr David Dufton adjourned the case to June 2 for mention and granted the defendant bail.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, the defendant was an assistant account executive of Samson, a cable manufacturer. She was responsible for selling Samson’s products to clients under the supervision of an account executive.
CT Cable Limited (CTCL) was set up by the Samson account executive and a business partner in June 2014. Ka Chun Engineering and Trading Company (Ka Chun) and Rise Engineering Company (REC) were two other companies associated with the Samson account executive.
The court heard that between mid-2012 and June 2016, the defendant conspired with the Samson account executive and others to falsely represent to Samson that another supplier had offered to supply cable products to Ka Chun and two new companies, whose names resembled CTCL and REC, at prices lower than that charged by Samson.
The defendant and the Samson account executive then suggested Samson to sell those products at the said lower prices to Ka Chun and the two new companies to secure their orders. Samson approved of the arrangement.
During the period, Samson received orders from Ka Chun, CTCL and REC for various cable products. The defendant and the Samson account executive then arranged Samson to supply those products in the total invoiced amount of about $3.4 million to the three companies at discounted prices.
As a result, Samson had undercharged at least over $820,000 in the abovementioned purchase orders.
The court heard that the defendant had then arranged REC to supply CTCL with cable products purchased from Samson.
The defendant had also told 17 clients of Samson that the cable products which they intended to purchase from Samson were out of stock, and referred them to Ka Chun and CTCL.
When interviewed under caution by ICAC officers, the defendant admitted her role in a conspiracy to divert businesses from Samson, and that she had received $150,000 from the Samson account executive for sending Samson’s clients to Ka Chun and CTCL.
Samson had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Alex Ng, assisted by ICAC officer Terence Wong.