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A 49-year-old Japanese man was sentenced to two years' imprisonment and suspended for three years in the Court of First Instance for false accounting today (July 7).

The court heard that the defendant was the financial director of Yaohan International Holdings Limited (YIHL). In 1997, YIHL ran into financial difficulty and was taken over by a new management in Hong Kong.

In March 1998, the newly appointed management disclosed that between April 1995 and March 1997, YIHL had advanced seven suspicious loans of HK$1,264 million to a number of companies registered in British Virgin Island. These companies were under the control of some of the directors of YIHL.

Enquiry by Commercial Crime Bureau (CCB) revealed that the investment was bogus and some funds had been channeled back to the YIHL. In August 1998, YIHL went into liquidation.

On August 27, 2002, CCB officers arrested the defendant at the Hong Kong International Airport when he returned from Japan.

The defendant was charged with a count of conspiracy to defraud and three counts of false accounting.

He was convicted of two counts of false accounting on July 4 and was sentenced today.

Police Report No.2

Issued by PPRB

End/1815hours, Monday, July 7, 2003 (TK)

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