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presented for payment at the Hong Kong & Shanghai Bank,
but owing to a technical defect in the endorsement payment
was refused and the cheque was returned by the Hong Kong
& Shanghai Banking Corporation to the Equitable Eastern
Banking Corporation and by them to their customer the
Man Lee Co.
On the 5th January the Treasury cheque for $95,142.19
was paid into the account, presented at the Hong Kong &
Shanghai Banking Corporation and duly honoured.
On the 6th January the Man Lee Company drew out of
its account $79,950.00 and on the 6th January drew out a
further $14,900.00, leaving a balance of $299.69 in the
account.
A cross comparison of the accounts of these three
firms show how, with an original capital of $3,500.00,
the persons concerned in this fraud were able, by
interchanging payment, to give to each account a semblance
of activity and bona fides.
Pursuing their investigations in the light of what
had been disclosed by enquiry at the above mentioned
Banks the Police discovered that at or about the beginning
of September, 1927, the Min Tak Co., had rented an office
on the 6th Floor of China Building.
These premises were raided by the Police on the
10th January, 1928.
The names of Min Tak Co., Katz & Co., and Man Lee Co.
all appeared outside the one office and in the office
were found the cheque books and paying in books used in
connection with the accounts of those firms at the above
mentioned banks.
Nothing was found indicative of any genuine business
ever having been conducted on the premises and enquires
103