Former Vitasoy marketing manager jailed for $1.9m fraud scheme  

A 41-year-old former marketing manager of Vitasoy International Holdings has been sentenced to 33 months in prison for orchestrating a sophisticated fraud scheme that cost the beverage company nearly HK$1.9 million. 

Chan Wing-fung was convicted on multiple charges, including fraud and conspiracy to deceive, following an investigation by the Independent Commission Against Corruption (ICAC).  

The District Court heard that between January 2016 and October 2019, Chan secretly controlled an advertising vendor called Why Creative Graphic Design House through his girlfriend while approving 39 purchase orders worth HK$1.9 million to the company. 

In violation of company policy, Chan never disclosed his conflict of interest and subsequently received over HK$600,000 in illicit profits through a prearranged 40% profit-sharing agreement.  

Deputy Judge Ivy Chui Yee-mei described the offense as "premeditated and serious," noting that Chan had deliberately undermined company interests for personal gain over three and a half years. The court also ordered Chan to repay the full HK$600,000 in illegal gains within six months or face an additional 19 months of imprisonment.  

The fraud was uncovered after Vitasoy conducted an internal audit and reported suspicious activity to the ICAC. Investigators discovered Chan had conspired with subordinate Keung Tze-ping, a 50-year-old former outdoor visibility officer, to fabricate 30 sets of false quotations from four vendors and 38 fake inspection reports to make the transactions appear legitimate.  

Keung, who pleaded guilty to two counts of conspiracy, received a nine-month jail sentence suspended for two years. Evidence showed the pair had created the fake documents to mislead Vitasoy into believing proper procurement procedures had been followed, when in reality no competing quotes had been obtained and no advertisement inspections had taken place.