Hong Kong ICAC Charges Two for Defrauding Four Banks

An SME director and a former clerk allegedly conspired to defraud four commercial banks, the Trade and Industry Department, and Hong Kong Mortgage Corporation.

Hong Kong’s ICAC (Independent Commission Against Corruption) has charged a director and former clerk of an SME for their roles in defrauding four banks of HKD 133 million in loans and banking facilities.

Chan Wing-fuk, 60, sole director and shareholder of now defunct Waty International Company, and Wong Tsz-wa, 28, the company’s former accounting clerk, jointly face six counts of conspiracy to defraud. Chan faces an additional 14 counts of conspiracy to defraud.

According to the ICAC, six of the charges allege that Chan/Wong conspired together with Waty International’s (unnamed) de facto owner and his female associate to defraud Dah Sing Bank, DBS HK and HSBC – by submitting dalse supporting documents in applications for banking facilities. The three banks granted banking facilities totalling HKD 31 million to WICL.

Seven charges allege that Chan/Wong conspired to defraud Citibank HK, Dah Sing Bank, DBS HK and HSBC into granting 83 loans totalling over HKD 102 million to Waty International, where the funds were released directly to seven of the company’s suppliers.

Five other charges allege that Chan/Wong conspired to also defraud the TID (Trade and Industry Department) into issuing five guarantees in favour of Dah Sing Bank, DBSHK and HSBC, and acting as the guarantor for various types of loans and facilities totalling HKD 7 million granted by the three banks to Waty International.

The two remaining charges allege that Chan conspired together with the duo to defraud the HKMC (Hong Kong Mortgage Corporation) into issuing two guarantees in favour of HSBC and acting as the guarantor for a term loan and an overdraft facility totalling HKD 4 million.

Chan and Wong have been released on bail and will appear in the Eastern Magistrates’ Courts on Friday (September 4) for the case to be transferred to the District Court for plea.