A solicitor is amongst three people convicted in a Hong Kong court for their roles in a fraudulent scheme to swindle HK$5.93 million with bogus standby letters of credit (L/Cs).

The trio were found guilty of six offences that took place between March 2004 and January 2005 after Hong Kong's Independent Commission Against Corruption (ICAC) brought charges against them.

Guilty

The convicted men are solicitor Chan Nai-keung, proprietor of Paul Chan and Co. Solicitors, a law clerk working for the same firm, Chiang Pak-yeung and proprietor of Leading Group Investment Enterprise, Lee Kwok-on.

All three were remanded in custody to await sentence.

Conspiracy

Chan and Chiang were convicted of three counts of conspiring with other persons to defraud three companies on mainland China.

The pair, together with other co-defendants falsely represented that International Finance Trading Company had agreed to arrange standby L/Cs for the use of those mainland companies.

False representation

Apparently duped by the false representation, the mainland companies deposited stake money totalling HK$3.59 million with Paul Chan and Co. The defendants subsequently pocketed the stake money.

Chan, Chiang and Lee were convicted of a similar offence of conspiring with other persons to defraud another mainland company of stake money totalling HK$1.17 million with a copy of a false standby L/C and a copy of a false cashier order involving Leading Group.

Lee alone was found guilty of one count of dealing with the HK$1.17 million, knowing that the sum represented the proceeds of an indictable offence.

More conspirators

Chan and Chiang were also convicted of another offence of conspiracy to defraud a fifth mainland company of stake money of HK$1.17 million with a copy of a false standby L/C and a copy of a false cashier order involving Wah Shun Investment Enterprise.

Six co-defendants have also been charged in connection with these frauds. Five of these defendants have pleaded guilty but one - an unemployed man known as Lui Chung-yee - absconded whilst on bail.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.