HKSAR v. Liu Chi Keung

Read the full judgment text of CACC 317/1998 on BabelCite. This Court of Appeal judgment was delivered on 26 February 1999.

1. The applicant was convicted by Beeson J in the Court of First Instance on his own plea of guilty on nine counts of possession of equipment for making a false instrument contrary to s.76(2) of the Crimes Ordinance (Cap. 200). He was sentenced to terms of imprisonment totalling five years. He now seeks leave to appeal against those sentences.

Cited by 4 cases

Case No.CACC 317/1998[1999] 2 HKC 235
Court
Court of Appeal
Date26 Feb 1999
Judge
Case Document
100%Judiciary

CACC000317/1998

Criminal Appeal No. 317 of 1998

HEADNOTE

Sentencing

Held: Consecutive sentences could not be justified for multiple offences of an identical nature committed in the course of the same transaction, with no evidence pointing to separate offences, a fortiori where a single charge appears to be more appropriate.

Consideration of application of totality principle and of total concurrent and consecutive sentences for multiple offences very substantially in excess of the maximum for a single offence.

IN THE HIGH COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

COURT OF APPEAL

1998, No. 317
(Criminal)

BETWEEN

HKSAR

AND

LIU CHI-KEUNG

--------------------------

Coram: Hon Nazareth Atg CJHC, Mayo and Stuart Moore JJA in Court

Date of Hearing: 19 January 1999

Date of delivering Judgment: 26 February 1999

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J U D G M E N T

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Nazareth, V.-P. (giving the judgment of the Court) :

1. The applicant was convicted by Beeson J in the Court of First Instance on his own plea of guilty on nine counts of possession of equipment for making a false instrument contrary to s.76(2) of the Crimes Ordinance (Cap. 200). He was sentenced to terms of imprisonment totalling five years. He now seeks leave to appeal against those sentences.

2. The facts are that on 25 April 1997, a party of Commercial Crimes Bureau officers in execution of a search warrant, raided a printing factory known as "Cathay Printing Company" located in a flat on the third floor of Block 2 of the San Po Kong Factory Estate. The applicant was found inside and arrested. A search of the premises revealed, among other things, a printing machine, a paper cutting machine, a plate exposure machine, and some 50 zinc plates and papers bearing patterns produced by these plates, which were all seized. The zinc plates had printing patterns designed to produce bank drafts of the Nanyang Commercial Bank, a bank draft of the Bank of China, bank documents of the Hongkong Bank and Hang Seng Bank, examination result certificates and a visa of the Republic of South Africa. Among the items seized were zinc plates designed and adapted to produce the following purported items:

(1) "Hong Kong Advanced Level Examination Certificate" of Hong Kong Examinations Authority ("HKEA")

(2) "Hong Kong Certificate of Education Examination" of HKEA (6 zinc plates)

(3) "Use of English Examination Certificate" of HKEA

(4) a purported visa of the Republic of South Africa

(5) a purported bank draft of Nanyang Commercial Bank (2 zinc plates)

(6) "Exchange memo/Customer's Advice" of Nanyang Commercial Bank

(7) "Hong Kong dollars savings account no book transaction receipt" of Hongkong Shanghai Banking Corporation Ltd

(8) "No book transaction advice" of Hang Seng Bank Ltd

(9) a purported bank draft of Bank of China.

Each of the nine foregoing items, apart from items (2) and (6), consisted of a single zinc plate.

3. The applicant admitted that the zinc plates were used to print the instruments in question at the request of one "Mr Chan" and that he knew that Mr Chan did not have authority to produce such instruments.

4. In addressing the sentences she was going to impose, the judge noted that the applicant had a clear record, that he was then 41 years of age, had secondary education and had been operating a printing factory since about 1987. She also noted the following matters. He is married with one daughter and one son who are at school. He was a voluntary worker with the Mountaineer Association in Hong Kong, and assisted with voluntary activities in relation to that Association - mainly youth work and fund raising. He also worked in a scheme which assists girls to receive schooling in China.

5. The judge rightly recognised that the offences were serious offences. She correctly noted that in relation to sentencing for offences under s.76(2) of the Crimes Ordinance, there was no direct assistance to be obtained from previous cases. She accepted that the major mitigation in the case was the applicant's plea of guilty notwithstanding that it came on the eve of the trial. She then continued in the following way:

"... I have decided that for each offence, a starting point of 30 months is appropriate. Giving the defendant the discount in respect of each of those cases, that's reduced to 20 months for each charge.

I have to take into account totality of sentencing, and to do that, I am proposing that on each charge, the defendant will be sentenced to one year and eight months' imprisonment. In respect of charges 1, 2, 3 and 4, that sentence will run concurrently. In respect of charges 5 and 6, the sentence will run concurrently. In respect of 7, 8 and 9, it will run concurrently. But in each case, each group will be consecutive, making a total of 60 months - five years' imprisonment.

The charges 1, 2, 3 and 4 will be 20 months' imprisonment on each of those charges, to be concurrent with each other, but consecutive to the sentence on 5 and 6, and consecutive to the sentence on 7, 8 and 9. ... a total of five years."

6. The first perfected ground of appeal was as follows:

"1. The learned Judge erred in not imposing a concurrent sentence on all the offences when the facts of all the offences arose out of one incident i.e. all the offences were committed on the 25th April 1997."

7. Section 76(2) of the Crimes Ordinance (Cap. 200) provides that:

"(2) A person who, without lawful authority or excuse, makes or has in his custody or under his control a machine or implement, or any paper or other material, which to his knowledge is or has been specially designed or adapted for the making of any false instrument, commits an offence and is liable on conviction on indictment to imprisonment for 3 years."

8. The nine charges were framed in identical terms save for the different specification of each of the false instruments in question. It suffices, therefore, to set out only the particulars of the first count which were as follows:

"LIU Chi-keung, on or about the 25th day of April, 1997 at the 'Cathay Printing Company' at Flat 6A-B, 3rd Floor, Block 2, San Po Kong Factory Estate, Wong Tai Sin, Kowloon, in Hong Kong, had under his control machines, instruments and materials, namely one printing machine of model number AB Dick 9805, one paper cutting machine, one plate exposure machine and one piece of zinc plate, which to his knowledge were or had been specially designed or adapted for the making of a false instrument, namely a purported 'Hong Kong Advanced Level Examination Certificate' of the Hong Kong Examination Authority."

As will be seen, the complaint in the first perfected ground of appeal goes much further than is immediately apparent. Each of the offences charged was essentially the same, i.e. that the applicant had under his control the same machines, instruments and materials at the same time and place, the only difference being the zinc plates. Plainly, one charge could easily have been laid. It would have been a simple matter to refer to the product or purpose of all the zinc plates together. It was not suggested that there was any difficulty in that regard. On the contrary, that would seem to be the natural thing to have done in the particular circumstances, i.e. to have included all the 15 zinc plates within a single charge in the same way that several items which happen to be stolen at the same time are made the subject of a single charge. The consequence of that would, of course, have been that the court would only have been able to sentence the applicant to the maximum provided for a single offence or charge. It is necessary to make clear in that respect that there appeared to be no evidence whatsoever to separate any of the offences so separately charged from each other, particularly in point of the time at which they may have been committed, save as to the one feature i.e. that the zinc plates specified in each of the charges were "specially designed or adapted for the making of" a separate and distinct "false instrument". Even if separate charges being laid viewed solely upon that basis could be justified, whether sentencing upon that basis could be justified is open to question. But what we are concerned with here, i.e. separate consecutive sentences in respect of the three groups of charges is clearly open to question, since all the offences arose out of the same transaction, moreover to a degree that is not usually encountered.

9. Mr Cheung for his part submits that the judge was entitled and indeed justified in splitting the offences into three categories. There were, he says, in fact three groups of offences judged by their seriousness; false instruments comprising examination certificates, comprising bank documents and comprising visas clearly fell into three groups of varying degrees of seriousness. The judge therefore was entitled to divide them into three groups and award different sentences in respect of each and moreover make them consecutive. The latter contention, that they could properly be made consecutive, cannot be accepted. In the first place, the judge did not divide the charges in the way suggested. The first group, i.e. charges 1, 2, 3 and 4 related to three examination certificates and one visa. The latter two groups consisted only of bank documents. But that is in the nature of an incidental objection. The real flaw in the submission is that all the charges being part of the same transaction, there is no proper basis for consecutive sentences. The seriousness of such offences could properly be met by placing all the offences in the group of the most serious offences and imposing the highest appropriate penalty permissible upon a concurrent basis.

10. We are satisfied, therefore, that the consecutive sentences imposed cannot be sustained. The maximum penalty under s.76(2) is three years. The serious view the judge took of the offences, as already observed, was clearly right. But we do not think that in the circumstances it could justify here a starting point of above two years and nine months. And from that starting point, there would have to be the discount of one-third that the judge properly allowed. We would accordingly allow the appeal, set aside the sentences and instead impose concurrent sentences of one year and ten months in respect of each of the nine offences. If this is thought to be too low, for a single offence of the present sort, then the answer may be for the legislature to very substantially increase the maximum penalty prescribed to cater for the entire range of foreseeable circumstances. Also not without relevance to that consideration must be the prosecution's election to accept pleas to the lesser offences under s.76(2) and not persevering with the original charges under s.76(1), which it appears on the facts might well have been established and would have attracted a maximum of 14 years imprisonment.

11. There remains the invitation Mr Cheung made to the Court to clarify two of the authorities upon which Mr Ip relied in his submissions on the applicant's behalf. The latter, Mr Cheung said, could confuse the courts at first instance if not clarified.

12. The first is the following passage from pp. 58 and 59 of the 2nd Edition of Thomas' Principles of Sentencing:

" Precise formulation of the first limb of the totality principle presents difficulty, particularly as the Court has on occasion upheld consecutive sentences amounting to a total in excess of the statutory maximum for the individual offence concerned, and even consecutive maximum sentences, but the essence of the principle appears to be that the aggregate sentence should not be longer than the upper limit of the normal bracket of sentences for the category of cases in which the most serious offence committed by the offender would be placed. This formulation would allow an aggregate sentence longer than the sentence which would be passed for the most serious offence if it stood alone, but would ensure that the sentence bore some recognisable relationship to the gravity of that offence." (emphasis supplied)

In reliance upon the words emphasised, Mr Ip had submitted that the totality principle meant that the sentences in totality should not be substantially in excess of the maximum provided for that category of offence. In his submission, given the maximum sentence of three years, something in the order of three years and three months might be acceptable but certainly not five years which approached twice the maximum.

13. Mr Cheung's response is that the part of the passage from Thomas emphasised must be wrong if it means that where there is a large number of offences that otherwise warrants a sentence substantially in excess of that maximum, it yet cannot be imposed because of the totality principle.

It has to be said that Mr Ip's submission cannot be accepted nor can the words emphasised in the foregoing passage from Thomas, if their effect is to preclude a sentence or the aggregate of consecutive sentences, substantially in excess of the statutory maximum for an individual offence. That said, it can be seen that the meaning and effect of the passage are not entirely clear. What is clear is that in appropriate cases, the aggregate sentence for consecutive offences of the same type may very substantially exceed the statutory maximum for an individual offence; this has not infrequently been done or approved by this Court.

14. The other authority about which Mr Cheung was concerned is the following translation obtained by this Court of the related passage from the judgment of this Court differently constituted in HKSAR v Wong Lou Tak (1998)2 HKC 607, 608 given in Chinese:

"We take the view that if a defendant had committed a series of similar offences at different times, in different places and under different circumstances, the judge should adopt a flexible approach in determining the sentence. Normally, he should first consider the most serious or more serious incident of these similar offences, and then the number of offences the defendant committed and the degree of their seriousness. Having considered the most serious cases in this type of offences, the maximum penalty, the sentencing guideline and the normal sentence imposed in similar cases, the judge should proceed to decide as the starting point for sentencing the defendant for those similar offences. The next step is to consider the defendant's mitigating factors, such as the plea of guilty, any restitution and his clear record, etc in order to arrive at an appropriate reduction. Finally the totality principle should be considered to determine the total sentence which the defendant deserves. Once the total sentence has been determined, this sentence should be imposed on the defendant for each of the offences committed, but the sentences should run concurrently. We are of the view that this approach is more reliable and is capable of reflecting the gravity of the similar offences the defendant had committed (at 608E-G)."

This, Mr Ip submitted, clearly set out the procedure and the steps to be adopted in applying the totality principle; the judge had plainly not followed it; therefore the judge erred in principle so that the sentence so arrived at was vitiated. We think the procedure recommended, which accords with previous decisions of this Court, would have been appropriate to the particular circumstances before the judge. But these, and those given earlier, are guidelines; important though they be, failure to observe them strictly would not necessarily be fatal to the sentences concerned if they are not manifestly inadequate or excessive. Moreover, the passage is concerned with circumstances of the sort before the court there, i.e. the 20 counts of deception. In respect of all of those, the judge at first instance considered a sentence of six months for each was appropriate. For the pleas of guilty, this was reduced by two months to four months. Then taking further account of the totality principle, the judge further reduced the sentence on each count to two months to run consecutively producing a total of 40 months.

15. The Court of Appeal there was thus concerned in the foregoing passage with the commission of "a series of similar offences, in different places and under different circumstances". We can see no reason to fear, as apparently, Mr Cheung does, that the recommended procedure will be thought to apply generally to the operation of the totality principle.

16. In the result, we grant leave to appeal, treat the hearing of the application as that of the appeal, allow the appeal, set aside the sentences imposed and substitute concurrent sentences of one year and ten months in respect of each of the nine offences.

(G.P. Nazareth)

(Simon Mayo)

(Stuart Moore)

Vice President

Justice of Appeal

Justice of Appeal

Representation:

Mr Cheung Wai-sun, DPGC (DPP) for the Respondent

Mr Peter Ip (DLA) for the Applicant