Son of 'King of Flashlights' admits to defrauding family of millions

The eldest son of "King of Flashlights" Anthony Sham Hon-sun pleaded guilty to a series of fraud charges after embezzling approximately HK$21.61 million from his parents' company by forging documents and mortgaging their properties.

Simon Sham Chun-man, the 57-year-old son of the industrial tycoon, admitted to five counts of fraud in the District Court.

The court heard that in 2023, he systematically took control of his parents' property investment company, Union Faith International Limited, by forging documents to appoint himself and an associate as the new directors and sole shareholders.

The scheme was uncovered in November 2023 when Sham's parents, who now reside in Canada, were denied a mortgage on one of their properties.

An investigation revealed that their son had already mortgaged three of their units in Marina Cove, Sai Kung, to five different finance companies, securing seven loans totaling HK$26.61 million.

The court was told that Sham's parents established Union Faith International Limited in 1992 for property investment. The company held a portfolio of eight properties and four car parking spaces with an estimated market value of HK$228 million.

The defendant's sister was the company secretary and held the company seal.

Between April and November 2023, Sham submitted four fraudulent documents to the Companies Registry, effectively seizing control of the company from his parents.

He used fabricated sales agreements, transfer documents, and board meeting minutes, which appeared to show his parents had sold him their shares for a nominal HK$1 each, to secure the loans.

After repaying some existing company loans, the majority of the embezzled funds were deposited into Sham's personal bank accounts. His parents and sister confirmed to the police that all the documents were fake and that they had never signed them. Sham was arrested on December 12, 2023.

In his mitigation, the defense stated that Sham, a married father of three, was driven by greed and used the money for investments, which ultimately led to his bankruptcy.

The defense painted a picture of a man who had fallen from grace, stating that as the eldest son, he was in line to inherit a "billion-dollar fortune" but is now homeless and living with friends. He expressed remorse and a desire to reconcile with his parents.

The judge has postponed sentencing until next month to allow for a background report to be prepared. Sham has been remanded in custody.