Former Hong Fook Court member charged over loan fraud
HK01 · 4 SOURCESabout 1 hour ago2 MIN
Summary
Police said former Hong Fook Court owners’ corporation committee member Kong Cheung-fat and his wife Cheung Yeuk-lan have been jointly charged after an investigation into alleged abuse of the government’s 100% Loan Guarantee Scheme. The pair face a total of two fraud charges and one charge of dealing with property known or believed to represent proceeds of an indictable offence, commonly called money laundering. The case is scheduled to be mentioned at Sha Tin Magistrates’ Courts on Tuesday, September 1. Reports said the allegations concern two loan applications made in 2022 and the later handling of more than several hundred thousand Hong Kong dollars in approved funds.
Key Points
- Kong Cheung-fat, 64, and his wife Cheung Yeuk-lan, 62, were arrested in mid-May after police received a report alleging their company fraudulently obtained government-backed financing.
- The couple are both directors of Artistry Interior Design Engineering Limited, which was linked to the suspected false applications under the 100% Loan Guarantee Scheme.
- According to reports, Kong allegedly filed two bank applications in 2022 and overstated January-to-March 2020 operating income by treating shareholder injections as business revenue.
- Reports said the inflated figures were used to create the appearance that income later fell sharply because of the pandemic, helping secure approval for the loans.
- Most of the loan money was later withdrawn in cash, while part was directly transferred to Kong’s personal bank account, according to reports.
Why It Matters
The case concerns the use of public-backed pandemic relief lending and the accuracy of revenue information submitted by applicants, both of which affect confidence in emergency support schemes. It also raises questions about how approved funds were monitored after disbursement and how suspected proceeds were handled.