Tuesday, November 30, 2021

Hong Kong watchdog charged former lawmaker Chim Pui-chung with fraud, money laundering

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Hong Kong’s anti-corruption watchdog on Friday charged former lawmaker Chim Pui-chung and his son conspiracy to defraud the Hong Kong Stock Exchange and a listed company over an alleged “backdoor listing” agreement and money laundering.

The ICAC said that Chim, 75, was a major shareholder of listed company Asia Resources while his son Ricky, 52, was the chairman of it.

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The charges allege that between July 2013 and November 2015, the pair conspired with a merchant to defraud Asia Resources, its board of directors and shareholders.

It’s alleged that the three had failed to disclose an agreement that the merchant would pay HK$210 million to Chim in order to control 70 to 75 percent of the entire issued share capital of Asia Resources.

They were said to have caused Asia Resources’ board of directors to increase the entire issued share capital of the company by placing new shares and convertible notes.

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The convertible shares represented more than five times the then-existing issued share capital of the company, the ICAC said.

An associate of the merchant, Wong Poe-lai, has also been charged in the same case with dealing with crime proceeds of HK$42 million.

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