CO129-510-14 Report of committee of enquiry into discrepancies and losses in government departments in Hong Kong... 21-4-1928 - 24-10-1928 — Page 103

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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

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