Ex-employees of cable manufacturer jailed for fraud over $3.4m business diversion
2020-7-7
Two former employees of a cable manufacturer, charged by the ICAC, were sentenced to jail terms up to 32 months at the District Court today (July 7) for conspiracy to divert business amounting to $3.4 million to three other companies by fraudulent means.
Pang Wing-tat, 40, former account executive of Samson Electric Wire Company Limited (Samson), and So Ying-han, 47, former assistant account executive of Samson, were jailed for 32 months and 27 months respectively.
In sentencing, Judge Mr Frankie Yiu Fun-che said he took a starting point of 54 months’ imprisonment for both defendants, and reduced Pang’s jail term to 32 months after taking into account his guilty plea and his repayment of $250,000 to Samson.
Having considered So’s guilty plea and assistance rendered to the prosecution, her jail term was reduced by half to 27 months, the judge added.
So earlier pleaded guilty to three counts of conspiracy to defraud, contrary to Common Law. Pang earlier pleaded guilty to two of the aforesaid offences jointly charged with So.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, Pang and So were account executive and assistant account executive of Samson, a cable manufacturer, respectively. They were both responsible for selling its products, with So working under Pang’s supervision.
Pang and a business partner set up a trading company in June 2014. Another two companies were also associated with Pang.
Between mid-2012 and June 2016, Pang and So conspired together and with others to falsely represent to Samson that another supplier had offered to supply cable products to Pang’s company and one of the two associated companies at prices lower than that charged by Samson.
So further admitted that she had conspired with Pang and another to make a similar false representation to Samson in relation to the remaining associated company, the court heard.
Pang and/or So then suggested Samson to sell those products at the said lower prices to Pang’s company and the two associated companies to secure their orders.
Samson approved the arrangement and received orders from Pang’s company and the two associated companies for various cable products during the abovementioned period.
Samson was then arranged 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.
Pang and So then arranged one of the associated companies to supply cable products purchased from Samson to Pang’s company. A total of 17 clients of Samson were referred to Pang’s company and the other associated company after being told that the cable products they intended to purchase from Samson were out of stock.
When interviewed under caution by ICAC officers, So admitted that she had received $150,000 from Pang for sending Samson’s clients to companies owned by and associated with Pang.
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.
Pang Wing-tat, 40, former account executive of Samson Electric Wire Company Limited (Samson), and So Ying-han, 47, former assistant account executive of Samson, were jailed for 32 months and 27 months respectively.
In sentencing, Judge Mr Frankie Yiu Fun-che said he took a starting point of 54 months’ imprisonment for both defendants, and reduced Pang’s jail term to 32 months after taking into account his guilty plea and his repayment of $250,000 to Samson.
Having considered So’s guilty plea and assistance rendered to the prosecution, her jail term was reduced by half to 27 months, the judge added.
So earlier pleaded guilty to three counts of conspiracy to defraud, contrary to Common Law. Pang earlier pleaded guilty to two of the aforesaid offences jointly charged with So.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that at the material time, Pang and So were account executive and assistant account executive of Samson, a cable manufacturer, respectively. They were both responsible for selling its products, with So working under Pang’s supervision.
Pang and a business partner set up a trading company in June 2014. Another two companies were also associated with Pang.
Between mid-2012 and June 2016, Pang and So conspired together and with others to falsely represent to Samson that another supplier had offered to supply cable products to Pang’s company and one of the two associated companies at prices lower than that charged by Samson.
So further admitted that she had conspired with Pang and another to make a similar false representation to Samson in relation to the remaining associated company, the court heard.
Pang and/or So then suggested Samson to sell those products at the said lower prices to Pang’s company and the two associated companies to secure their orders.
Samson approved the arrangement and received orders from Pang’s company and the two associated companies for various cable products during the abovementioned period.
Samson was then arranged 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.
Pang and So then arranged one of the associated companies to supply cable products purchased from Samson to Pang’s company. A total of 17 clients of Samson were referred to Pang’s company and the other associated company after being told that the cable products they intended to purchase from Samson were out of stock.
When interviewed under caution by ICAC officers, So admitted that she had received $150,000 from Pang for sending Samson’s clients to companies owned by and associated with Pang.
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.