see also Ulaca's Lily Chiang Set to Do a Runner? and Oh Sisters Two, What May You Do?
About Novel HKSAR Names
Name Category: somewhat common in Hong Kong; Phonetic-based
Reference: Guilty Chiang 'mastermind' of $3.7m scam (The Standard)
Natalie Wong
Friday, June 10, 2011
Businesswoman Lily Chiang Lai-lei was yesterday found guilty of being the "mastermind" of a HK$3.7 million share manipulation scheme.
The former Hong Kong General Chamber of Commerce chairwoman was convicted of fraud, conspiracy to defraud and authorizing the issue of a prospectus that included an untrue statement.
Chiang, 50, from an influential pro- Beijing business family, was calm and stared at her husband and family as District Court judge Albert Wong Sung-hau finished handing down a verdict that took three days to go through.
Judge Wong said all evidence pointed to the "irresistible inference" that Chiang obtained the money by instructing 10 junior staffers to hold options on stocks in two companies on her behalf to avoid listing rules.
"In all circumstances, she must have been the mastermind of the illegal scheme," he said. "She must have been fully aware of making such false representation in a scheme designed by her."
Chiang hid from the Securities and Futures Commission that she was "the real beneficial owner" of the options and had induced the stock exchange to approve a prospectus of Eco-Tek Holdings which contained false information.
As the former chairwoman of Pacific Challenge Holdings, Chiang's dishonest acts, committed in 2001-02, cost economic loss to her companies, shareholders and potential investors, he added. Co- defendants Tahir Hussain Shah, 45, and former Eco-Tek chief executive Pau Kwok-ping, 54, were also found guilty of fraud and conspiracy to defraud.
Counsel will present mitigation submissions this morning. Sentencing is set for next week.
Outside court, Chiang's sister Ann Chiang Lai-wan said: "She did not expect such a verdict. No clothing and skin- care products were prepared."
The family will decide whether to appeal next week. Chiang's stepmother Ma Jwung-hwa said she is "heartbroken."
Chiang is the fourth daughter of industrialist and philanthropist Chiang Chen, 87, who founded Chen Hsong Group, one of the world's largest injection-molding machine makers. Five of her seven siblings are national or provincial members of Chinese People's Political Consultative Conferences.
A mother of four, Chiang became the first female head of the city's oldest business chamber in 2007. She is a member of Shandong provincial CPPCC.
She had expressed an intention to run for the 2004 Legislative Council election and later became a member of the Liberal Party's executive committee.
She was also named one of the Ten Outstanding Young Persons in Hong Kong in 1999 for her charity work.
An older sister, Ann Chiang, vice chairs the Democratic Alliance for the Betterment and Progress of Hong Kong.
Her third eldest sister, Agnes Chiang Lai-ping, was a popular singer and actress in the 1980s. Younger sister Chiang Lai-yuen is chief executive of Chen Hsong, helping her father since 2000.
Reference: Lily Chiang a dishonest witness, judge decides (SCMP; paywall)
Verdict in alleged shares scam case is expected today after court is told businesswoman tried to make up excuses
Austin Chiu
Jun 09, 2011
A judge yesterday said high-profile businesswoman Lily Chiang Lai-lei was a "dishonest and unreliable" witness.
Judge Albert Wong Sung-hau told the District Court she tried to make up excuses to distance herself from the crime of which she is accused.
The former chairwoman of the General Chamber of Commerce and her two co-defendants remained behind bars last night.
They are awaiting their fate on a range of charges brought by the Independent Commission Against Corruption in connection with an alleged shares scam.
Wong said yesterday he would finish handing down his verdict today.
Chiang, 50, Tahir Hussain Shah, 45, and former chief executive of Eco-Tek Holdings, Pau Kwok-ping, 54, face charges including fraud, conspiracy to defraud, false statements by directors and authorising the issue of a prospectus that included an untrue statement.
The judge's comments yesterday followed a dramatic move on Tuesday when he revoked Chiang's bail.
Chiang - whose father is a prominent industrialist - is accused of pocketing more than HK$3.7 million by instructing others to hold options or shares in two listed companies on her behalf, contrary to listing rules.
She allegedly kept the fact that she was the genuine owner of the shares and options from the Stock Exchange and the Securities and Futures Commission.
Chiang wore a mask in court and from time to time bowed her head as she listened to the judge describe her as an unreliable witness.
"She tried to distance herself from the scam," Wong said.
"She tried to ... make up excuses for the granting of share options. I found that [Chiang] was not an honest witness," Wong said.
"I refuse to accept the exculpatory part of her evidence."
The judge came to his conclusion after saying he found it was unreasonable for Chiang to claim that she granted 8,844,800 Eco-Tek shares to her former personal assistant Iris Yip Yuk-chun as a gift, considering her minor role in the company.
Yip, the prosecution's key witness - who is giving evidence against her former boss under immunity from prosecution - earlier told the court that she held the shares only on Chiang's behalf.
Wong said: "Giving [Yip] such a large amount of shares is in my judgment out of proportion."
Chiang earlier told the court that she was not involved in the selection of people who would receive share options at the time of the alleged crimes between 2001 and 2002, as she suffered from poor health and was seldom at the office.
But Wong said that such a level of indifference on the part of Chiang - a majority shareholder in Pacific Challenge Holdings - was impossible.
The judge also ruled that Shah was an evasive and dishonest witness. He said that he would be continuing his analysis of the witness' evidence.
Chiang's sister, Ann Chiang Lai-wan, a vice-chairwoman of the Democratic Alliance for the Betterment and Progress of Hong Kong, said outside court yesterday that their industrialist father Chiang Chen did not attend the court because he had business commitments.
She said they had told their father that his daughter's bail had been revoked.
"You can imagine my father's feeling," Ann Chiang said. "He is a positive person. We, the whole family, will face the verdict calmly."
She said: "What's most important is she knows we all support her."
austin.chiu@scmp.com
Reference: Lily Chiang behind bars with verdict due in trial (SCMP; paywall)
Judge revokes bail for former chief of General Chamber of Commerce facing fraud charges
Joyce Man
Jun 08, 2011
Lily Chiang Lai-lei, the former chairwoman of the General Chamber of Commerce facing fraud charges, will learn her fate either today or tomorrow after spending last night behind bars.
Judge Albert Wong Sung-hau revoked her bail as he was part way through giving his verdict in the trial of Chiang and two co-accused. They had been on bail up until yesterday's proceedings in the District Court.
"For reasons I will give, I've decided it is appropriate to revoke bail," Wong said.
Posts
"No clothing and skin- care products were prepared". WTF?
ReplyDeleteGood to hear that at least some high profile people do get convicted of dodgy dealings.
Welcome to the world of the Tai Tai and rich Hong Kong women! If such women were ever to succumb to spontaneity and spend the night away from their homes (heaven forbid!), they would need to have their luxuries with them otherwise mayhem would occur.
ReplyDeleteLily Chiang was even reported to say that she would teach her fellow inmates English and how to take care of themselves using proper beauty regimens. These days it seems that spending time in jail is like being on vacation or taking a sabbatical. And all this is being covered by taxpayers money.
Talk about living in a different world. Good to know they have their priorities right - makeup first!
ReplyDeleteSounds like she is trying to make a "good impression", then she might get a cut in sentence? Also good PR.
But at least she is in jail, I'm sure that she would much rather not be there, as the free accommodation and food is not 7star. Perhaps she might even learn some life lessons? It's theoretically possible.
Another humbling experience for one of the privileged class. Yes, let's hope she stays in long enough to learn some ordinary truths.
ReplyDeleteThe ladies in jail clearly don't need rehabilitation and training, they need beauty and makeup lessons, so that they can snag a husband after they get out?
ReplyDeleteThere's a strange sort of Hongky "logic "at work there.
Yes, nice one. In fact, no matter where local Hongkie women may be, they need to to able to "doll up" and set "man traps" to help secure a "worthwhile" future.
ReplyDeleteMind you, this practice is not exclusive to Hongkie women.