The Hong Kong Independent Commission Against Corruption (ICAC) has announced that four people had been convicted at the Hong Kong Eastern Magistracy of accepting or offering over HK$323,000 in illegal commissions in relation to trading in securities. Two of the defendants, Mr Chi-cheung Chan and Mr Wing-ho Tang were formerly employees and licensed representatives of First China Securities Limited (FCSL). The other two defendants, Mr Shing-chi Ha and Mr Shing-ming Ha, were both stock investors.

Mr Chan and Mr Tang were respectively found guilty of one count and three counts of agent accepting an advantage, in contravention of section 9(1)(a) of the Prevention of Bribery Ordinance (POBO). Mr Shing-ming Ha was convicted of one count of offering an advantage to an agent in contravention of section 9(2)(a) of the POBO, while Mr Shing-chi Ha was found guilty of two similar offences. The Court heard that:

• at all material times Mr Shing-ming Ha, Mr Shing-chi Ha and their father, Mr But-yee Ha had securities accounts with FCSL to conduct trading in securities;
• upon arrangement by Mr But-yee Ha, Mr Chan and Mr Tang were employed by FCSL as dealer and marketing manager respectively to execute trade orders for the Ha family;
• on 17 occasions between 2 September 2009 and 11 February 2011, Mr Chan received sums of money ranging from HK$1,000 to HK$42,000, totalling HK$208,000 from Mr But-yee Ha and Mr Shing-ming Ha. Mr Shing-ming Ha transferred these sums into Mr Chan’s bank account as Mr Chan has assisted in the securities trading;
• between 24 February 2009 and 9 November 2010 Mr Tang received sums totalling HK$96,700 from Mr But-yee Ha and Mr Shing-chi Ha. These sums were transferred into Mr Tang’s bank account from the bank account of Good Investment Company, of which Mr Shing-chi Ha was the sole proprietor;
• Mr Tang also received another HK$19,000 in cash from Mr But-yee Ha on 10 November 2010; and
• the management of FCSL prohibited its employees from soliciting or accepting any advantages in relation to its business.

The Court found that all of these payments were illegal commissions accepted by Mr Chan and Mr Tang as rewards for their assistance to the Ha family in the trading of stocks and warrants. The case has been adjourned until Tuesday 9 July for mitigation.

The ICAC stated that FCSL and the Hong Kong Securities and Futures Commission had rendered full assistance to the ICAC during the course of its investigation.

The CAC’s press release is available.

http://www.icac.org.hk/en/news_and_events/pr2/index_uid_1434.html