Three defendants in a fraud case targeting Japanese investors were jailed for 33 to 54 months on 9 November, completing the sentencing of five people convicted in the case. A former bank relationship manager received 45 months, a self-employed financial adviser 33 months and the manager of ADF Capital Limited 54 months. Two other former bank relationship managers had earlier been jailed for three years.
The newly sentenced former bank relationship manager and the financial adviser had pleaded guilty to conspiracy-to-defraud charges. The ADF manager was convicted after trial of conspiring to deal with property known or believed to represent the proceeds of an indictable offence.
The prosecution case described a scheme running from January 2015 to September 2016, in which three bank employees and the adviser conspired with foreign nationals. They used false certificates of funds and company refund bills of exchange to solicit more than 400 million yen from Japanese investors for ADF and other companies said to be involved in African investment projects.
The false documents were made to look as if they had been issued by Standard Chartered Bank (Hong Kong) Limited. The prosecution case said they claimed the bank guaranteed ADF, with acceptance amounts totalling about HK$450 million, and that the foreign nationals held assets worth more than HK$37 billion for African projects.
The ADF manager’s conviction also concerned a conspiracy with two foreign men to use a bank account to launder about HK$55 million connected with the fraud. For the newly sentenced former bank relationship manager and the adviser, the judge set a 68-month starting point before reducing their terms for guilty pleas; the adviser received a larger reduction after assisting the prosecution.
The ICAC is seeking three foreign suspects. A magistrate had issued warrants for them.