Telecom executives convicted of fraud in HK
see also Independent Commission Against Corruption
The District Court in Hong Kong convicted Wednesday two former top executives of China Motion Telecom International for swindling more than 12 million HK dollars (1.54 million U.S. dollars) in consultancy fees.
Former chairman of the company Hau Tung-ying, 54, and former executive director Li Bin, 40, were found guilty of one count of conspiracy to defraud. The case has been adjourned to Feb. 10 for mitigation.
Between September 2000 and April 2005, the defendants conspired with others to defraud the company and its two wholly owned subsidiaries - China Motion NetCom (Asia) and China Motion Holdings.
Without the knowledge of the board of directors, the defendants dishonestly caused NetCom to enter into three consultancy agreements with two contractors, Bioroad Developments and Headwise International.
According to the agreements, the contractors would provide professional services for the operation of NetCom in the Asia-Pacific and North America at a monthly consultancy fee ranging from 100,000 HK dollars to 432,000 HK dollars.
In fact, the contractors, under the control of the defendants, had never provided NetCom with any consultancy services. However, payments totaling 12 million HK dollars were released under the consultancy agreements, the court was told.
The two were charged by the Independent Commission Against Corruption of Hong Kong.