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Note: To inflate the gross profit margins of Yue Fung International Holdings Ltd. (Applicant) in order to qualify its listing on the Main Board of the Hong Kong Stock Exchange (Stock Exchange), Li Wing- Kei (Defendant), among other things, arranged to have a commercial letter of credit issued in favor of Fortune Conductive Carbon BVI (Beneficiary). Nothing underpinned the alleged underlying transactions and the proceeds were recycled to Applicant by Beneficiary. Because of this and other misrepresentations, Applicant was listed on the stock exchange.

Defendant was charged with conspiracy to defraud Stock Exchange and conspiracy to defraud the investors, shareholders, and creditors of Applicant. The Court of First Instance of the High Court convicted Defendant on both charges. On appeal, the Court of Appeal of the High Court, Hon. Stock VP., Yeung JA., Stone J., affirmed Defendant's conviction.

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