Two ex-printing staff sentenced over hidden conflict scam
SingTao · 2 SOURCESabout 2 hours ago2 MIN
Summary
Two former employees of Bannershop Hong Kong Limited were sentenced in the District Court after pleading guilty to fraud over a concealed conflict of interest involving delivery contracts. Former assistant production manager So Keung was jailed for 10 months, while former delivery department supervisor Cheung Hoi-kei received a seven-month sentence suspended for 12 months.
Key Points
- The case was heard on August 17 at the District Court sitting in Tsuen Wan, where both defendants admitted one count of fraud under section 16A(1) of the Theft Ordinance.
- Deputy Judge Wai Hon-hei said So Keung had masterminded the scheme and that both men had breached trust owed to their employer.
- Prosecutors said So's brother-in-law was engaged for delivery work after being recommended by Cheung in February 2018, without proper disclosure to the company.
- Between May 2018 and January 2022, freight payments of about HK$6.6 million were routed through the bank account of So's wife, Poon Po-lin.
- About HK$5.6 million was later transferred to the relative, while the remaining roughly HK$1 million was split between So and Cheung, at about HK$700,000 and HK$300,000 respectively.
- Bannershop Hong Kong Limited is engaged in digital printing, graphic design and exhibition decoration installation work. According to the case, the company's staff handbook and code of conduct required employees to report business dealings involving spouses or siblings and to avoid conflicts of interest. ICAC investigators found that So had described his brother-in-law as a friend and had never disclosed either that family relationship or that Poon Po-lin was his wife to the company. Poon, 55, had also been charged with fraud, but the related charge against her was ordered to remain on the court file. The ICAC said Bannershop gave full assistance during the investigation, which began after a corruption complaint
Why It Matters
The case underlines the legal and employment risks for private-sector staff who conceal personal ties while handling procurement or contractor arrangements. The ICAC said companies should set clear conflict-of-interest rules and declaration mechanisms, while employees should make timely disclosures to avoid possible criminal liability.