Ex-manager of fabric company charged by ICAC gets 30 months’ jail for $1m fraudulent orders and money laundering

A former project manager of a fabric company, charged by the ICAC for making false representations to cause three customers to place orders worth totalling about $1 million with companies owned by his associates and laundering crime proceeds of about $720,000, was today (April 22) sentenced to 30 months’ imprisonment at the District Court.

Li Ka-wing, 53, former project manager of Showtex Hong Kong Limited (Showtex HK), was today sentenced to 30 months’ imprisonment. He earlier pleaded guilty to a total of nine charges, namely three counts of fraud and one of attempted fraud, contrary to section 16A of the Theft Ordinance and section 159G of the Crimes Ordinance; as well as five counts of dealing with property known or believed to represent proceeds of an indictable offence (commonly known as money laundering), contrary to section 25(1) of the Organized and Serious Crimes Ordinance.

In sentencing, Deputy Judge Ms Amy Chan Wai-mun remarked that the present case was serious in nature. She reprimanded the defendant for orchestrating the fraudulent scheme, in breach of the trust that was placed on him.

A co-defendant of the case, Zhao Bingguo, 42, operator of Maban Trading Co., Limited (Maban), earlier pleaded guilty to the aforesaid five counts of money laundering at the District Court and received a jail term of one year.

Li was a project manager of Showtex HK responsible for sourcing business when the offences took place between June 2018 and April 2019. Showtex HK supplied flame retardant curtain fabrics, installed stage projection screen and provided event decoration services.

The court heard that Li had made false representations to three customers of ShowtexHK, respectively claiming that Maban and another multimedia company were subcontractors of Showtex HK, dealt with the same factory with Showtex HK or Showtex HK was unable to provide relevant services, causing the three aforesaid customers to place orders with Maban or the multimedia company.

The ICAC investigation arose from a corruption complaint. Enquires revealed that Maban and the multimedia company were not subcontractors of Showtex HK and had no dealings with Showtex HK or its factory. It was revealed that at the material time, the three customers had placed orders worth totalling about $1 million with Maban and the multimedia company.

Inquiries revealed that although the three aforesaid customers placed orders with Maban and the multimedia company, Li arranged Showtex HK to provide some of the items in the orders through fraudulent means. Part of the payment of the orders made by the customers to Maban and the multimedia company were eventually deposited into the bank accounts of Li or his family members.

Investigations also revealed that Zhao was the operator of Maban, which engaged in knife trading. Zhao and the operator of the aforesaid multimedia company were former employees of Showtex HK.

Li and Zhao dealt with crime proceeds of about $720,000 in relation to the scheme via the bank account of Maban, the court was told.

Showtex HK has rendered full assistance to the ICAC during its investigation into the case.

The prosecution was today represented by prosecuting counsel Bernard Chung, assisted by ICAC officers Henry Cheung, Keith Yan and Ruby Ho.