Fraudsters jailed for up to 41/2 years for criminal 'masterpiece'
Nine fraudsters in what a judge called a 'masterpiece' of a crime have been sentenced to 14 to 54 months in prison for cheating nine banks out of HK$70.7 million in loans.
The sentencing yesterday came after a 70-day trial in which the defendants, all men aged 35 to 56, were convicted of 13 charges of money laundering and conspiracy to defraud. The group included a former executive director of Canadian-listed company Tagalder, a financier and four Standard Chartered employees.
Former Tagalder director Chun Ka-tsun and financier Terry Tsoi Kai-chung received the longest terms, of 41/2 years, while Wong Wai-chi was handed the shortest, of 1 year and two months. Among the bank employees, Thomas Wan Sai-cheung was jailed for 31/2 years, Dennis Chan Wai-hung three years, and Philip Lee Wai-tong and Thomas Lee Kay-kiu 21/2 years. Chan Kin-keung was jailed for four years and Ng Yun-lam 11/2 years.
Deputy District Judge Rickie Chan Kam-cheong called their crime 'a masterpiece of work' and 'a highly sophisticated crime committed by highly qualified people'. He said he was not surprised that banks were cheated. Reports showed the defendants had good backgrounds, with praise from family and friends. 'It was really hard to imagine that they may have committed such a crime.'
The men operated in a syndicate that applied for and received loans from the banks using three fake companies and six bogus suppliers from April 2004 to March 2006. The banks were Citibank, Bank of China (Hong Kong), Shanghai Commercial Bank, Bank of East Asia, Hang Seng Bank, DBS Bank, Dah Sing Bank, HSBC and the then Belgian Bank, now ICBC.
The group forged audit reports, financial statements, bank records, business registrations and commercial invoices to present to banks. Some of the defendants acted as people in charge of the fake companies during meetings with banks. They took bank employees to fraudulent mainland factories to show they were running legitimate businesses.
The judge found two of the defendants were the motivators behind the syndicate: Dennis Chan, who provided much evidence that led to the convictions of the other defendants, and former certified accountant Diana Yuen, who became an immunised prosecution witness.
The fake companies were Orient Power (Hong Kong), Yuen Chien Computer Company, and Mason Holdings, and the six bogus suppliers were Vatex.com, CNC, Zhejiang, Lei Tat, Chequers and ATA.
As of today, the banks still suffered a loss of HK$31.5 million, said Myron Ng Man-keung, a detective senior inspector with the police commercial crimes bureau. A key message from the case, he said, was that banks should treat senior staff the same way as other employees when conducting their audits.
A BOCHK spokeswoman said the bank had strict regulations on granting loans and would constantly review and improve mechanisms.
