Three family members accused of defrauding Hong Kong cosmetics retailer Bonjour of HK$40 million and laundering the proceeds
- Prosecution says mother and son used inflated salaries and 35 identities to embezzle funds to their own accounts and that of the family’s father
- All three have denied the charges of fraud and money laundering
A Hong Kong family of three have been accused of laundering HK$40 million (US$5.1 million) that the mother and son had allegedly defrauded from cosmetics retailer Bonjour through their position in the company.
Opening his case before a jury of eight on Wednesday, prosecutor Newman Wong Hing-wai said the family used inflated salaries and 35 identities, including those of 22 former or serving staff, to channel company funds into their personal accounts from 2004 to 2011.
Some HK$27 million was transferred to the father, despite him never working for the company, Wong said.
Wong said the alleged offences came to light on March 22, 2011 when a company manager noticed a new staff member from another department was paid unusually well for a human resources officer, which prompted an investigation.
“They found that people who had never worked for the company were getting money from the company and people who worked for the company were getting more than they should have,” Wong continued. “And then there are these people whose names don’t match with the accounts.”
The mother and son were dismissed from the company on the same day.
Facing the bulk of the charges was the mother, Kiu Mei-ling, 64, who has denied two counts of fraud and three of handling properties known or believed to represent proceeds of an indictable offence.
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The son, Ha Ting-pong, 41, has pleaded not guilty to one count of fraud and another of handling properties known or believed to represent proceeds of an indictable offence. On both counts he is jointly charged with his mother.
The father, 70-year-old security guard Ha Wai-shing, has denied two of those money laundering counts, jointly charged with his wife.
Both men had no criminal records.
The High Court heard Kiu joined Bonjour Cosmetic Wholesale Centre as human resource and administration manager on May 24, 2004 at a monthly salary of HK$15,000 plus attendance bonus.
She was joined three months later by her son, who was employed as a clerk with a monthly salary of HK$6,500 plus HK$500 attendance bonus and overtime pay.
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Company chairman Wilson Ip Chun-heng said their salaries were annually appraised, subject to his final approval.
But he could not explain why records showed that Ha’s salary was appraised at HK$11,500 on March 30, 2005 when he had just been offered HK$7,300 two months earlier on January 25.
Ip also did not know why one staff member had two different contracts dated three weeks apart, one showing a basic salary of HK$8,000 while the other stated HK$18,000.
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Admitted facts revealed Kiu received close to HK$3 million from Bonjour via HSBC’s payroll transfer from 2004 and 2011. Her son pocketed another HK$11.5 million in four accounts, while her husband got HK$27 million.
The trial continues before deputy High Court judge Mr Justice Michael Lunn.
