Big trouble over small houses: Hong Kong developer, villagers convicted after illegally netting HK$4.3m in scheme
Court finds defendants violated government policy meant to encourage indigenous residents to build homes for own use
Eleven indigenous villagers and a developer were convicted this morning in District Court of deceiving the government in a ‘small-house’ building scheme.
The 11 villagers were found to have illegally sold their right in building “small houses” to developer David Li Yam-pui, 81, and obtained a total of HK$4.3 million in rewards between 2008 and 2011.
Judge Sham Siu-man convicted Li as well as Chan Chi-cheong, 51; Wong Cheuk-fan, 49; Wai Chun-kit, 33; Wai Chun-ho, 34; Wan Kwai-lun, 70; Cheng Kwok-wah, 56; Cheng Yu-wang, 54; Cheng Hing, 79; Yau Kwai-chu, 57; Wai Pak-hon, 31; and Ricky Lau Tak-sing, 46. Together they faced 22 counts of conspiracy to defraud.
READ MORE: Builder and 11 villagers accused of defrauding Lands Department in ‘small-house’ scam
Sham said: “The government’s policy was meant to allow [indigenous villagers] to have their own houses so that they could live there with their family.
“However, the indigenous villagers in this case did not follow the policy to execute their rights to build houses for their own use. They sold their rights in return for personal gain. This is against the government’s policy.”
Sham remanded the 12 in custody pending sentencing on December 4.
The court heard the developer paid money to a middleman to look for indigenous villagers who were eligible to apply to construct “small houses”.
