Ex-bank manager duo admits defrauding investors of JPY400m ICAC

Two former bank managers pleaded guilty at the District Court on Thursday morning to conspiracy to defraud Japanese investors into investing over JPY400 million (about HK$28.4 million) in a number of companies that claimed to take part in investment projects located in Africa. 

The court heard that Woo Man-ho and Chan Tak-ching were relationship managers of Standard Chartered Bank, working at its business banking department and priority banking department, respectively.

The bank would issue documents to confirm the balance of a client’s account held at the bank upon request, but the duo were not authorized to sign or issue those documents.

From October 16, 2015 to April 8, 2016, the duo signed eight false proof of fund letters and corporate refund promissory notes (CRPNs) and sent them to different people and companies involved in the case via Standard Chartered emails.

The four CRPNs involved promised returns totaling US$7.2 million (over HK$5.6 million). As a result of the false representations, various Japanese investors were deceived into making investments totaling at least JPY400 million (about HK$28.4 million) to ADF Capital Limited (ADF) and a number of companies involved in this case.

The ICAC investigation arose from a corruption complaint, and enquiries revealed that Standard Chartered Bank had never held the above-mentioned assets.

The duo were arrested by the anti-corruption watchdog in 2017, and under oath, Woo admitted to being instructed to prepare false documents to deceive Japanese investors. Chan also admitted to signing the acceptance notes involved in the case.

The defense revealed that the two defendants planned to provide assistance to the prosecution and testify against other co-defendants during the trial.

The other three defendants involved in the case have pleaded not guilty and their cases are adjourned to July 2 next year.