Printing company trio charged by ICAC for concealing conflicting interest in $6.6m delivery services fraud

Two former employees of a printing company and the wife of one of them were charged by the ICAC yesterday (June 3) for allegedly deceiving the company into engaging a relative to provide delivery services and making payments totalling about $6.6 million by concealing conflicting interest for personal gain of about $1.2 million.

So Keung, 52, former assistant production manager of Bannershop Hong Kong Limited (Bannershop); his wife Poon Po-lin, 54; and Zhang Haiqi, 33, former delivery section supervisor of Bannershop, jointly face one count of fraud, contrary to section 16A(1) of the Theft Ordinance.

The case unfolded in an ICAC investigation arose from a corruption complaint. The defendants were released on ICAC bail, pending their appearance at the Kwun Tong Magistrates’ Courts tomorrow (June 5) for mention. The prosecution will apply for transferring the case to the District Court for plea.

Bannershop is engaged in digital printing, graphic design, exhibition decoration and installation. At the material time, So was an assistant production manager responsible for managing the production of printed products while Zhang, being the delivery section supervisor, was responsible for managing the delivery of printed products to customers.

In February 2018, upon the recommendation of Zhang, the brother-in-law of the So’s couple was engaged by Bannershop to deliver products to its customers. Zhang would submit the relevant invoices to the company for settling delivery fees.

The staff handbook and code of conduct of the company stipulated that staff members were obliged to notify the company where their spouse or sibling held any business negotiation with the company, and that they should avoid conflict of interests.

The charge alleges that between May 2018 and January 2022, the three defendants had concealed from Bannershop So’s familial relationship with his brother-in-law and Poon, and defrauded the company to remain engaged with the brother-in-law to provide delivery services and settle delivery fees totalling $6.6 million.

ICAC enquiries revealed that Poon’s bank account was arranged to receive payments from Bannershop. While about $5.4 million was transferred to the bank account of the brother-in-law of the So’s couple, So and Zhang received over $800,000 and over $300,000 respectively. So had never declared to Bannershop his familial relationship with his brother-in-law and Poon.

Bannershop rendered full assistance to the ICAC during its investigation into the case.