TNAG-2774-FCO40-3991-Hong-Kong-anti-corruption-drive-including-briefs-by-the-Inde-1993 — Page 6

CONFIDENTIAL # 3

3

KWOK Yee, William

11.

In 1986 KWOK,

solicitor, a

withheld from

a

company he acted for details of a purchase price offered for one of its properties. Instead, with two shareholders of the company, through a shelf company, he bought the

once resold it to property at a lower price, and at authentic purchaser for a higher price. The profit in the transaction was $2.5M.

12.

an

He was arrested by ICAC, charged and in February 1987 jumped court bail.

Further ICAC

investigation revealed KWOK had

and from

an

13. stolen some $30M from clients' accounts investment firm by which he was engaged.

14.

KWOK fled to Taiwan but in February 1992, he was arrested in Singapore at the request of ICAC. He waived extradition proceedings and voluntarily returned to Hong Kong. Two of the major witnesses in the original fraud case refused to testify against KWOK and these charges had to be dropped. However, on 10 August 1993 in the face of overwhelming evidence he pleaded guilty in the High Court to 20 counts arising from his other thefts. He was sentenced to 6 1/2 years' imprisonment.

Fraud in Vehicle Registration

15.

Enquiries into allegations of bribery and corruption against staff of the Kowloon Bay Examination Centre led to three motor-traders, CHOW, CHOW and KWAN, being charged with two offences of conspiracy to defraud. The defendants allegedly understated the age of goods vehicles imported from Japan and forged supporting documentation. They will stand trial at the District court on 3 February 1994. As a result of inquiries conducted in Japan two further dealers may be charged.

Deception by Solicitor

16.

On 4 December 1992, Benjamin CHOI, a solicitor, appeared at a magistrate's court, charged with four counts of theft and forgery.

17.

CHOI is alleged to have stolen $0.9 million from a client, a plaintiff in a civil litigation case, and concealed the proceeds in a fictitious bank account by using the company name of his employer. before the District Court on 3 January 1994.

He will appear

G.F. 326

CONFIDENTIAL #

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