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Note: While employed as Credit Officer of Hang Seng Bank in Hong Kong, David Wong allegedly assisted in the issuance of 258 letters of credit by the bank based on fraudulent applications. The LCs totaled HK$932.8 million. Charges of criminal fraud were brought against Wong and others in Hong Kong and his extradition was sought from Canada where he had removed himself.

The Ontario Superior Court, Macdonald, J., ordered that a warrant of extradition be issued. The judge found that the evidence was not manifestly unreliable ("likely to result in an unsafe, unsound or unreasonable verdict") for the crimes of received secret commissions and fraud.

In assessing whether the evidence was not manifestly unreliable on the Hong Kong charge of fraud, the judge considered it in light of the parallel Canadian charges which would require action as an agent, knowingly taking a benefit while acting for the principal, and knowingly failing to make adequate and timely disclosure of the benefit.

In evaluating the evidence, the judge found that Wong had admitted that he had acted as an agent of Hang Seng Bank, and that Wong had received two Rolex watches and HK$230,000. As to disclosure of the benefit, the judge noted that the Bank had established, "a code of conduct which required that the respondent not solicit, accept or retain personal benefits from any customer of the bank or from any one [sic] seeking to do business with the bank". The judge also noted testimony by the head of Trade Finance at the bank to the effect that he was unaware of why the credit applicants "enjoyed many favourable terms in obtaining credit facilities from the bank."

The judge also found that the record revealed substantial financial injury in the issuance of the LCs in connection with non-existing transactions.

[JEB/mcb]

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