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Police this (January 18) morning charged four men and a woman jointly with one count of conspiracy to defraud in connection with a case of false accounting involving an ex-listed company.
Following investigations into a complaint referred to the Commercial Crime Bureau (CCB) in June 2003, officers of the CCB mounted an arrest operation in May 2005.
Subsequent investigations revealed that among the arrestees, a 53-year-old man and a 51-year-old man were the Chairman and the Deputy Chairman of the subject company. The duo, in January 2001, through a series of bank transactions involving the accounts of eight shell companies, the subject company and the personal account of the 53-year old man, fraudulently generated a loan from the duo to the subject company in the sum of HK$100 million.
Another 47-year-old man was the director of the subject company at the material time while the remaining 40-year-old man and the 44-year-old woman were allegedly involved in the fund circulations.
Subsequent to the fabrication of the accounting records of the subject company, the 53-year-old man and the 51-year-old man were benefited by dishonestly receiving the repayment of the said loans purportedly financed to the subject company, by cash at HK$55 million and the issuance of ordinary shared of the subject company at HK$45 million.
The five persons were charged jointly with one count of conspiracy to defraud and will appear in Eastern Magistrates' Courts this afternoon.
Police Report No. 3
Ends/Wednesday, January 18, 2006
Issued at HKT 11:55
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