Ex-managing director of investment bank charged with bribery over IPO of logistics company
A former managing director of an investment bank has been charged by the ICAC today (May 16) with bribing the chairman of a logistics company with an employment of the chairman’s son with the bank for the chairman showing favour to the bank in the engagement of investment banks or institutions for the initial public offering (IPO) of the company.
Catherine Leung Kar-cheung, 51, former managing director of J.P. Morgan Securities (Asia Pacific) Limited (JPMS), faces two charges of offering an advantage to an agent, contrary to Section 9(2)(b) of the Prevention of Bribery Ordinance.
The defendant will appear at the Eastern Magistracy next Monday (May 20) for mention.
At the material time, the defendant was a managing director employed by JPMS, a subsidiary of JPMorgan Chase & Co. (JPM). She was responsible for sourcing business for JPMS, JPM and its affiliates.
In around 2007, JPMS began to hire candidates referred by its clients or potential clients under the client referral programme. Senior staff at or above the rank of executive director or managing director, such as the defendant, could refer candidates to JPM or JPMS for the junior post of analyst or associate.
One of the charges alleges that on January 19, 2010, the defendant offered to the chairman of the logistics company an advantage, namely a contract of employment of the chairman’s son with JPMS, as a reward for the chairman showing favour to JPMS in the engagement or employment of investment banks or institutions for the IPO of the company.
The other charge alleges that between June 28, 2010 and October 28, 2011, the defendant offered to the chairman of the logistics company an advantage, namely the employment of the chairman’s son with JPMS, for the same purpose.
The defendant has been released on ICAC bail, pending her court appearance next Monday.