Former CEO jailed over HK$60.17 million watch fraud
Bastillepost · 2 SOURCESabout 2 hours ago4 MIN
Summary
Former Wan Leader International executive director and chief executive Chow Wang (周泓) was sentenced at the High Court on Monday to 10 years and eight months in prison after being convicted of fraud over false payments totaling HK$60.17 million. The court also ordered him to pay compensation of HK$51.57 million and barred him from acting as a director and holding related positions for 15 years.
Key Points
- The case centred on 16 company cheques issued between January 1, 2020 and March 31, 2021, purportedly to settle payments for beauty products from three suppliers.
- Prosecutors said the money was in fact used to buy 11 luxury watches through an intermediary, while no products were ever delivered to the subsidiary.
- Judge Kwok Kai-on said Chow abused his authority as chief executive, executive director, subsidiary director and authorised signatory, calling the conduct a serious breach of trust.
- The judge found the scheme was premeditated, lasted about 15 months, involved false accounting entries afterward, and damaged the listed company’s reputation, share price and governance credibility.
- Former finance director Chu Ka-wah (朱嘉華), 41, had faced the same fraud charge but was earlier acquitted by the jury.
Why It Matters
The sentence underscores how Hong Kong courts treat senior executives who misuse listed-company funds and corporate authority for personal gain, especially where losses cannot be fully recovered. For investors and boards, the ruling also points to the reputational and market fallout that can follow weak internal controls at a listed issuer.