Ex-lawmer Chim Pui-chung sentenced to 34 months in jail for defrauding stock exchange

Former lawmaker Chim Pui-chung was jailed for 34 months at District Court on Monday after he and his son Ricky Chim Kim-lun were previously convicted of conspiracy to defraud the stock exchange and a listed company in 2013.

Chim’s 55-year-old son Ricky Chim, was jailed for 37 months. 

In December last year, District judge Ernest Lin Kam-hung had found the 79-year-old ex-lawmaker and his son guilty of two counts of conspiracy to defraud.

The case also included the conviction of 68-year-old businesswoman Wong Poe-lai for money laundering who was jailed for 24 months before Lin.

The elder Chim was a legislator representing the financial services sector between 2004 and 2012.
He was then a substantial shareholder of the listed company Asia Resources Holdings Ltd while his son was the chairman from 2008 to 2014.

The Chims were accused of conspiring with absconded merchant Ma Zhonghong to defraud the HKEX and Asia Resources' board of directors and shareholders through a "secret backdoor listing" agreement in a capital-raising exercise.

Ma was said to have paid HK$210 million to the father and son pair to take over between 70 percent and 75 percent of Asia Resources stocks between July 1, 2013, and November 15, 2015.

Judge Lin said in the judgment in December that, although the transactions involving shell companies were not illegal and did not have to be reported to the stock exchange, the company's board and smaller shareholders were unable to make a decision after reviewing all the information.

In response, an ICAC spokesman said Monday that the Commission has filed an application for confiscation order with the District Court to recover the crime proceeds concerned.

The spokesman added that ICAC would continue its collaboration with financial regulators to combat corruption and related crimes involving listed companies to uphold integrity of the Hong Kong financial market.

(Eunice Lam)
(Updated at 3.41 pm)