The Australian Federal Police this week said it would charge five men with defrauding the Commonwealth Superannuation Scheme, the equivalent of Hong Kong's Mandatory Provident Fund, of A$150 million (HK$891.3 million).

The men allegedly forged instructions directing fund custodian JPMorgan Chase to transfer the money to four accounts on Christmas Eve, 2003, with A$30.4 million directed to Hong Kong.

According to Australian Broadcasting Corporation reports on court proceedings in Sydney, one of the accounts belonged to HK Power Ltd. Two of the five men then flew to Hong Kong, drew on the funds during a cruise on the Omar III liner, lost A$3 million in the ship's casino, then cashed in their chips and had the money sent to their personal accounts in Hong Kong, according to police. The police later recovered that part of the money.

The Omar III had only commenced sailings on December 21. Helen Lo, a spokeswoman for Asia Cruises, which runs the cruises, said the company would not comment on the case, but then said, "[Asia Cruises] is one of the victims of this incident.''

She said there have been errors in press accounts of the incident, but declined to elaborate.

HK Power handles financial arrangements for high rollers sailing on the Omar III, according to a stock circular issued by Guo Xin Group, which this year invested in a HK Power subcontractor. The circular identifies HK Power's owners as Benny Ki and an unnamed associate.

Ki is also a major shareholder in the companies that own and operate the ship. Ki has been involved with owning and operating nine casino ships over 12 years, according to a stock circular from Riche Multi-Media Holdings, which recently agreed to partner with Ki for gambling junkets on the Omar Star, a ship Asia Cruises is preparing to launch.

That circular said that Ki would "contribute his expertise and knowledge ... relating to anti-money laundering measures with a view to formulating relevant internal control system and risk management measures to counter and prevent any potential money laundering activities.'' Ki, who recently earned HK$700 million on an investment in Chungking Mansions, could not be reached for comment.

Two other Hong Kong-listed companies, Century Legend (Holdings) and Melco International Development, are also involved with the Omar III's casino operations.

Casino cruises generally ferry passengers from Tsim Sha Tsui to their liners in Victoria Harbor before heading out overnight into international waters where there are no regulations on gambling and money laundering. . "These trips to nowhere are a major hole in the system,'' said Stephen Vickers, president and chief executive of corporate investigations firm International Risk.

zach.coleman@singtaonewscorp.com