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Restaurant shareholder and employee given community service order for conspiring to commit false accounting
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     A Chinese restaurant shareholder and an employee charged with conspiring to commit false accounting were each sentenced to 160 hours of community service today (September 19) at the Eastern Magistrates' Courts.

     The case was referred by the Labour Department (LD) to the Police for investigation. Subsequently, the Police took out prosecution against the shareholder and employee pursuant to the Crimes Ordinance and Theft Ordinance. The two defendants pleaded guilty to the charge on September 5.

     The two defendants were respectively the shareholder and employee of the same Chinese restaurant, which ceased operation without prior notice at the end of 2009, leaving wages and other termination payments to the staff unpaid. The staff subsequently applied for ex gratia payment from the Protection of Wages on Insolvency Fund (PWIF). While verifying the PWIF applications, the LD discovered individual employees or persons responsible for the restaurant might have been involved in suspected crimes or offences, and referred the case to the Police for follow-up action.   

     The LD spokesman welcomed the court judgment and said, "We endeavour to combat PWIF abuses. During our verification of PWIF applications, if any employer, employee or other person is suspected to be involved in abuses or fraud involving the PWIF, or other suspected crimes or offences, we will refer the case to the Police or other appropriate law enforcement departments for action."

     According to the Crimes Ordinance and Theft Ordinance, the maximum penalty of conspiracy to commit false accounting is 10 years' imprisonment.

Ends/Monday, September 19, 2011
Issued at HKT 14:59

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