Former Convoy execs charged with conspiracy to defraud HKEx

Business | 22 Jul 2019 6:27 pm

Two former senior executives of Convoy Financial Holdings were charged by the Independent Commission Against Corruption today for their alleged roles in a conspiracy to defraud the Stock Exchange of Hong Kong, and the company and its board and shareholders over the acquisition of an investment company at a consideration exceeding HK$89 million.
Chan Lai-yee, 46, former chief financial officer of Convoy Financial Holdings, and Byron Tan Ye-kai, 51, former executive director, face a joint charge of conspiracy to defraud.

The defendants will appear in the Eastern Magistracy on Wednesday afternoon for mention, the Independent Commission Against Corruption, said. They were released on ICAC bail.
Convoy Financial, later renamed as Convoy Global Holdings Limited (Convoy Global), was listed (publicly listed Convoy) on the main board.
Chan and Tan were respectively the chief financial officer and executive director of publicly-listed Convoy. Shareholding disclosures records showed that Cho Kwai-chee was only a minor shareholder of Convoy and did not hold any directorship of the company during the acquisition.
Convoy Collateral was an indirectly wholly owned subsidiary of publicly listed Convoy. Its principal activities were providing money lending and proprietary investment.
The ICAC alleged that, there were discussions among Cho, Chan and Tan regarding the potential acquisition of True Surplus International Investment, in which Cho held 55 percent shareholdings. The British Virgin Islands-incorporated company engaged in assets investment and provision of consultant services.
The charge alleges that between April 1, 2016 and December 7, 2017, Cho, Chan and Tan conspired together to defraud the stock exchange, Convoy and its board and shareholders.
They are accused of concealing or failing to disclose that Cho was a substantial shareholder or a director of Convoy under the listing rules; concealing or failing to disclose the acquisition of True Surplus by Convoy Collateral as a connected transaction; and causing Convoy Collateral to acquire True Surplus on September 5, 2016 without publicly listed Convoy having complied with the listing rules.
Cho, 55, was charged by the ICAC with one count of conspiracy to defraud on May 16 for his alleged role in the scam. He will also appear in the afternoon of Wednesday in the Eastern Magistrate for mention.

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