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The Independent Commission Against Corruption (ICAC) has charged a former independent non-executive director and 11 others with allegedly conspiring to deceive a company into granting share options. The accused appeared at the Eastern Magistrates’ Courts this afternoon and the case was adjourned to January 24, 2025.
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Initiated in January after a corruption complaint, the ICAC's investigation was conducted in collaboration with the Securities and Futures Commission (SFC).
Tsang Chung-yu, 56, formerly of Zioncom Holdings Limited (now Metaverse Yunji Technology Group Company Limited), and the others face charges of conspiracy to defraud, contrary to Common Law, and an alternative charge of conspiracy to deal with property known or believed to represent proceeds of an indictable offense under the Organized and Serious Crimes Ordinance and the Crimes Ordinance.
Zioncom, a manufacturer and seller of networking communication products, was listed on the Growth Enterprise Market Board of the Hong Kong Exchanges and Clearing Limited (HKEX) in January 2018. It was renamed on October 21, 2022, and delisted on December 4, 2023.
Since 2017, Zioncom has had a share option scheme to reward those contributing to the company. The scheme aimed to motivate enhancements in company and shareholder value.
The alleged offenses took place between April and September 2022, when Tsang was an independent director. It is alleged that the defendants conspired to falsely represent 10 individuals as company employees to induce Zioncom into granting them 66 million share options.
The alternative charge alleges that these 10 individuals dealt with over HK$4.35 million, the proceeds from 66 million shares subscribed by the share options.
Following the hearing, the magistrate approved the prosecution's application and adjourned the case. The defendant’s bail conditions included surrendering travel documents, a prohibition on leaving Hong Kong, and non-interference with prosecution witnesses.
