ICAC Landmark Cases - The Unmaking of a Legend (Carrian Fraud Case)

Prisoner at Last

The pre-trial of the case against the former Carrian chairman began in early 1996. In March, the High Court Judge decided to revoke his bail and had him remanded in prison pending trial about six months later. However, as he claimed to be seriously ill, the judge permitted him to forward his health and medication reports for a Correctional Services Department medical officer to consider whether he should instead be transferred to the custodial ward. Whatever happened, this was the first time that he lost his freedom after more than 10 years of being out on bail. Shortly afterwards, through his lawyer, he expressed his willingness to plead guilty to two charges. On 27 September 1996, while everyone was celebrating the Mid-Autumn Festival, the former Carrian chairman was sentenced to three years’ imprisonment.

Justice served

Defendant	Former Carrian chairman
Guilty as charged	Two counts of conspiracy to defraud Between August 1980 and October 1983, he conspired to defraud Bank Bumiputra Malaysia Berhad (BBMB) and Bumiputra Malaysia Finance Limited (BMFL) by dishonestly causing BMFL to make loans totalling US$238 million
Sentence	Three years’ imprisonment; prohibited for a period of five years from taking up a post of director or in administrative management or from holding any assets of a company
Defendant	Former BMFL chairman
Guilty as charged	One count of conspiracy to defraud Between December 1979 and October 1983, he conspired to defraud Bank Bumiputra Malaysia Berhad (BBMB) and Bumiputra Malaysia Finance Limited (BMFL) by dishonestly permitting BMFL to make inadequately secured or guaranteed loans totalling US$292 million to companies associated with the former chairman of Carrian.
Sentence	One year’s imprisonment (seven years’ custody in the UK prison before extradition)
Defendant	Former BMFL director
Guilty as charged	Two counts of conspiracy to defraud Between January 1982 and October 1983, he conspired to defraud Bank Bumiputra Malaysia Berhad (BBMB) and Bumiputra Malaysia Finance Limited (BMFL) by dishonestly permitting BMFL to make inadequately secured or guaranteed loans totalling US$137 million to companies associated with the former chairman of Carrian. Two counts of accepting advantages Between September 1981 and May 1982, he accepted HK$15,726,880 from the former chairman of Carrian in return for facilitating the advance of monies to companies associated with him.
Sentence	10 years’ imprisonment
Defendant	Alternate director of BMFL
Guilty as charged	Two counts of conspiracy to defraud Between August 1980 and October 1983, he conspired to defraud Bank Bumiputra Malaysia Berhad (BBMB) and Bumiputra Malaysia Finance Limited (BMFL) by dishonestly permitting BMFL to make inadequately secured or guaranteed loans totalling US$238 million to companies associated with the former chairman of Carrian.
Sentence	5 years’ imprisonment
Defendant	Manager of a European Bank
Guilty as charged	Four counts of accepting bribes Without the permission of his employer, he accepted HK$2.37 million from the former Carrian chairman in return for giving favours to the Carrian Group in business matters
Sentence	3 years’ imprisonment; returned the bribes to the liquidator of Carrian
Defendant	Former executive director of an international bank
Guilty as charged	Two counts of accepting bribes Without the permission of his employer, he accepted HK$888,000 and 668,000 Carrian shares from the former Carrian chairman in return for giving favours to the Carrian Group in business matters
Sentence	18 months’ imprisonment; returned the bribes to the Carrian liquidator and also paid $300,000 to the Government

Justice served

Defendant	Guilty as charged	Sentence
Former Carrian chairman	Two counts of conspiracy to defraud Between August 1980 and October 1983, he conspired to defraud Bank Bumiputra Malaysia Berhad (BBMB) and Bumiputra Malaysia Finance Limited (BMFL) by dishonestly causing BMFL to make loans totalling US$238 million	Three years’ imprisonment; prohibited for a period of five years from taking up a post of director or in administrative management or from holding any assets of a company
Former BMFL chairman	One count of conspiracy to defraud Between December 1979 and October 1983, he conspired to defraud Bank Bumiputra Malaysia Berhad (BBMB) and Bumiputra Malaysia Finance Limited (BMFL) by dishonestly permitting BMFL to make inadequately secured or guaranteed loans totalling US$292 million to companies associated with the former chairman of Carrian.	One year’s imprisonment (seven years’ custody in the UK prison before extradition)
Former BMFL director	Two counts of conspiracy to defraud Between January 1982 and October 1983, he conspired to defraud Bank Bumiputra Malaysia Berhad (BBMB) and Bumiputra Malaysia Finance Limited (BMFL) by dishonestly permitting BMFL to make inadequately secured or guaranteed loans totalling US$137 million to companies associated with the former chairman of Carrian. Two counts of accepting advantages Between September 1981 and May 1982, he accepted HK$15,726,880 from the former chairman of Carrian in return for facilitating the advance of monies to companies associated with him.	10 years’ imprisonment
Alternate director of BMFL	Two counts of conspiracy to defraud Between August 1980 and October 1983, he conspired to defraud Bank Bumiputra Malaysia Berhad (BBMB) and Bumiputra Malaysia Finance Limited (BMFL) by dishonestly permitting BMFL to make inadequately secured or guaranteed loans totalling US$238 million to companies associated with the former chairman of Carrian.	5 years’ imprisonment
Manager of a European Bank	Four counts of accepting bribes Without the permission of his employer, he accepted HK$2.37 million from the former Carrian chairman in return for giving favours to the Carrian Group in business matters	3 years’ imprisonment; returned the bribes to the liquidator of Carrian
Former executive director of an international bank	Two counts of accepting bribes Without the permission of his employer, he accepted HK$888,000 and 668,000 Carrian shares from the former Carrian chairman in return for giving favours to the Carrian Group in business matters	18 months’ imprisonment; returned the bribes to the Carrian liquidator and also paid $300,000 to the Government