7 executives of Hong Kong-listed firm arrested over alleged HK$120 million fraud

Seven senior executives of a Hong Kong-listed company have been arrested in a joint operation by the city’s anti-corruption agency, securities regulator and Macau police for their alleged involvement in fictitious transactions and false accounting totalling HK$120 million (US$15.4 million).

The seven people – including the chairman and an executive director of the listed company – were arrested by the Independent Commission Against Corruption (ICAC) on Monday and Tuesday for allegedly using documents with an intent to deceive a principal under the Prevention of Bribery Ordinance.

Six premises were jointly raided by the ICAC and the Securities and Futures Commission. Macau’s Judiciary Police also launched what it called a “first-of-its-kind” concurrent law enforcement action in the casino city to search related premises and interview individuals, according to the ICAC.

“The joint operation fully demonstrates the close collaboration and determination of the two cities’ law enforcement agencies in tackling cross-boundary corruption and other crimes to maintain a clean and fair business environment and effective operation of the financial market,” ICAC Deputy Commissioner and Head of Operations Ricky Yau Shu-chun said on Wednesday.

According to the agencies, the chairman of the listed company and other individuals allegedly falsified business documents and accounting records of the company’s subsidiaries in Hong Kong and Macau, with its trade receivables totalling over 113 million patacas (US$14.08 million) being reduced.

The arrestees were also accused of using false documents and accounting records to conceal the misappropriation of more than HK$9 million in company funds.