Ex-SMI chief hit with asset freeze

The SFC has obtained an interim injunction order against Anita Leung Fung-yee Maria, the former chief executive and executive director of SMI Culture & Travel Group, to preserve assets for potential compensation orders in ongoing legal proceedings.

The request for an interim injunction against Leung, preventing her from disposing of assets in Hong Kong and abroad, was prompted by new information received by the SFC, which suggests a genuine risk of asset dissipation.

The Court of First Instance granted the interim injunction on September 19, 2023, pending the full hearing.

Under the order, she is required to provide written notification to the SFC of all her assets valued at HK$50,000 or more, regardless of their location and ownership status (whether in her name or jointly).

Secondly, Leung must also inform the SFC when she executes a sale and purchase agreement, creates any new encumbrance, or draws down a new loan secured by the specified properties she owns in Hong Kong, Shanghai, and Canada.

Lastly, Leung is prohibited from disposing of, dealing with, or reducing the purchase price, loan funds, or any proceeds from relevant encumbrances until at least 28 days have passed since the notification to the SFC.

The SFC initiated legal proceedings against Leung and two other senior executives of SMI in October 2019.

These individuals include Leung's husband Philip Wong Yu-hong (deceased), who was the former chairman and non-executive director, and Tsiang Hoi-fong, the former executive director.

Between 2010 and 2012, Leung, Wong, and/or Tsiang carried out a fraudulent scheme, according to the SFC.

They used non-genuine sale and purchase agreements related to TV license rights, which had a total value of HK$327.75 million.

The scheme led to SMI purchasing significantly overpriced assets. The losses incurred by SMI were estimated at approximately HK$235.36 million. Meanwhile, Leung and/or Wong gained unjust profits ranging from HK$35.2 million to HK$74.27 million, which were transferred to Leung and/or companies owned by them.

Leung is a famous Hong Kong novelist and her husband Philip Wong was a politician, who served as a member of the legislative council, and a deputy to the National People's Congress in Mainland China.