IN CONFIDENCE

CASES OF INTEREST

The CHU Kwan-kong Conspiracy

108. The arrest of Chinese male Cнu Kwan-kong and 12 others was reported in the Narcotics Bureau Bulletin, 1st Half 1976. Since then, two persons wanted in connection with the case have

been arrested. They are:~

Chinese male CHENG Wui-keung (6774/2585/1730)

Chinese female Cíu Kuen-ha (2612/1227/7209)

109. CHu Kwan-kong first came to the attention of the Narcotics Bureau in 1972, when in- formation indicated that he was co-habiting with CHENG Yuk-oy, a well known heroin distributor who had been the subject of a Narcotics Bureau investigation since 1964.

110. Investigation into the activities of CHU and CHENG revealed that the couple had actively engaged in the local distribution of heroin and the export of heroin to Europe. In April, 1976, with the securing of an ex-courier and heroin storekeeper of CHU and CHENG, evidence was obtained to establish a case of Conspiracy To Traffic In Dangerous Drugs against them. The Narcotics Bureau were subsequently able to secure three more accomplices who had been members of Chu's syndicate. Evidence of the four accomplices showed that between 1968 and 1975 the syndicate operated:-

(a) Three heroin factories;

(b) One heroin retailing centre;

(c) Two consignments of heroin to Europe, and;

(d) The supply of heroin to about 20 major heroin distributors.

111. The quantity of heroin handled by the syndicate during the 7 year period was estimated to range from a minimum of 0.42 tons to a maximum of 1.32 tons, with a street level retail value of between HK$50 million and HK$150 million.

112. On 25th May, 1976, a Colony-wide operation to smash the syndicate commenced and continued for about 4 months, resulting in the arrest of CHU, CHENG, and the leading members of the syndicate. A total of 15 people were subsequently charged, their trial commencing on 25th October, 1976. The trial concluded on 28th January, 1977, and details of the defendants, charges and sentences are shown below:-

Name

(1) C/M CHU Kwan-kong

(2612/0981/3068)

Result

A. 7 years, B. 30 years. (concurrent)

A. 30 years, B. 30 years. (concurrent)

Not guilty.

Position

Organisation head

Charges

A and B

(2) C/F CHENG Yuk-oy

(6774/3768/1230)

Organisation head

B and C

(3) C/F CHOW Yuet-ming (0719/2588/2494)

Morphine broker

B

(4) C/M Lo Cheung-hung

(5012/5046/7703)

Heroin distributor

B

8 years.

(5) C/M CHAN Ching-shun (7115/3237/3711)

Courier

B

8 years.

(6) C/F WONG Kam-yuk

(7806/6855/3768)

Heroin distributor

B

12 years.

(7) C/M PANG Kam-sum

(1756/6930/2773)

Heroin distributor

B

(8) C/F CHIM Yuk-chun

(6124/3768/3791)

Heroin chemist

B and C

Nolle Prosequi, entered

on 18th November

1976.

Not guilty on both

counts.

30

IN CONFIDENCE

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