HKSAR v. Stuart Hamish Coombe

Case No.DCCC 110/2009
Court
District Court
Date06 May 2009
Judge
Case Document
100%

DCCC 110/2009

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

CRIMINAL CASE NO. 110 OF 2009

________________________

  HKSAR  
  v  
  STUART Hamish Coombe Defendant

________________________

Before: Deputy District Judge Eddie Yip
Date:  6 May 2009 at 10:29am
Present: Ms. Virginia Lau, Senior Public Prosecutor for HKSAR
Mr. John Patrick McNamara, instructed by M/S Robertsons, for defendant
Charges: 1-10) Theft (盜竊罪)

__________________

Reasons for Sentence

__________________

The charges and facts

1.The Defendant pleads guilty to 10 charges of theft of his employer’s monies of HK$9,591,010 in total between 10 November 2005 and 25 March 2008. 

2.The breakdown is as follows:

  Charge  Amount HK$ Date of offence
  1 389,500 10 Nov. 2005
  1,503,760  10 Nov. 2005
  3 975,000 10 Jan. 2006
  4 975,000  10 Jan. 2006
  1,324,300  3 Aug. 2006
  6 662,150 3 Aug. 2006
  7 1,558,000 24 Apr. 2007
  8 545,300  24 Apr. 2007
  9 1,560,000 25 Mar. 2008
  10  98,000 25 Mar. 2008

3.At all material times, he was the Managing Director of the Jeanswear Licensing Department of VF Asia in Hong Kong.  VF Asia had a company bank account maintained at Citibank N.A. Hong Kong.  He was one of the authorised persons of VF Asia for the issue of company cheques from that account.  After his resignation in June 2008, his successor discovered that he had authorized payments of HK$9,591,010 in total between 10 November 2005 and 25 March 2008 into a company called Harmony Inc. Limited (“Harmony”) based on invoices submitted for payment by Harmony.   

4.He was in fact the sole director and shareholder of Harmony, which had no business transactions with VF Asia.  Harmony had no employees.  Its registered address was the same as his home address.   Its invoices bore an address occupied by an unrelated company.  The sums stolen ranged between a high of HK$1,560,000 and a low of HK$98,000. 

5.Upon arrest and under caution, the Defendant exercised his right of silence. 

Mitigation put forward

6. The Defendant is now 39 years of age.  He was married but now faces divorce proceedings.  He has 2 daughters, aged one and two respectively.  He was born in Australia but has become a Hong Kong permanent resident.  He received education in Scotch College in Australia.  He worked in “Nike” between 1991 and 1997.  He was the Sports Marketing Manager of Adidas in 1998.  He joined VF Asia in 2004 as the Managing Director of Jeanswear Licensing in Hong Kong.  In 2008, he resigned from VF Asia to work for “Calvin Klein”.  He is presently unemployed. 

.

7. The initial purpose of setting up Harmony was to bring elite sports stars to Hong Kong to feature for the promotion and advertisement activities.  However, greed took the upper hand and Harmony became its instrument.  Out of the crime proceeds, he paid the tax for Harmony and purchased a new car.  He put the remaining sum into an equity fund held in his wife’s name.  After April 2007, he had determined that it was time to come to an end.  Misfortune had it that in early 2008, his parents were in dire need of funds to save their wine plantation in South Australia as a result of the severe drought.  He did it again to pay for their bank loans.      

8.The money stolen was around HK$9.6 million.  The Defendant has already repaid VF Asia in the sum of HK$3.2 million.  His share, probably a half share, in the matrimonial home at Tregunter Path, has been frozen in the civil suit (HCA 2160/2008) taken out by VF Asia in the recovery of the stolen money.  According to the latest valuation, albeit done a year ago, the property was worth HK$2.2 million.  The outstanding mortgage loan is now $11 million.  If he actually gets a half share in it, there will be a sum of HK$5.5 million to pay to VF Asia.  In that scenario, VF Asia will have recovered HK$8.7 million in all.  The loss suffered will be HK$0.9 million, excluding interest.  This has to be regarded as very substantial restitution.   

9.His counsel submits that each pair of charges, namely 1st and 2nd charges, 3rd and 4th charges, 5th and 6th charges, 7th and 8th charges, as well as 9th and 10th charges relate to the same act of stealing though the money was paid out on a separate date.  Each pair of charges should be subject to a concurrent sentence.   

Principles of sentence

Breach of trust

10.In HKSAR v Cheung Mee Kiu CACC 99/2006, the Court of Appeal laid down sentencing guidelines for theft involving breach of trust as follows: 

(a) over $15 million, 10 years or more;
(b) $3 million to $15 million, 5 to 9 years;
(c) $1 million to $ 3 million,  3 to 4 years;
(d) $250,000 to $1 million, 2 to 3 years;
(e) less than $250,000, less than 2 years

Concurrent and consecutive sentences

11.In Attorney General v Cheung Pit-yiu CAAR 11/ 1988, Cons VP explained the nature of concurrent sentences:

6.This Court has more than once had cause to restate the general principle that concurrent sentences are only appropriate for offences that can properly be said to have been committed in the course of a single transaction.

Totality

12.In R v McKechan [2004] EWCA Crim 212, David Clark J said totality was a “principle that consecutive sentencing for multiple offences must not be used so as to produce a total sentence which is excessive for the overall offending”. 

13.In HKSAR v Zhen Futing Cr App 509/2003, the applicant was charged with two offences of possession of arms without a licence, two of possession of offensive weapons, and one of resisting a police officer in the due execution of his duty.  Stock JA said, at para. 18, that:

Judges must always sentence accurately for each particular offence and having done so, only then address the question of totality.

The sentence I pass

14.I accept defence counsel submission that each pair of charges, namely 1st and 2nd charges, 3rd and 4th charges, 5th and 6th charges, 7th and 8th charges, as well as 9th and 10th charges, relate to the same act of stealing and warrant a concurrent sentence.  Based on the guidelines in Cheung Mee Kiu (supra), I take the respective starting points as follows:

  Charge Amount HK$ Starting point
  1 389,500 3 years and 6 months
  2 1,503,760 3 years and 6 months
  (1st and 2nd charges are to be concurrent sentences)
  3 975,000 3 years
  4 975,000 3 years
  (3rd and 4th charges are to be concurrent sentences)
  5 1,324,300 3 years and 6 months
  6 662,150 3 years and 6 months
  (5th and 6th charges are to be concurrent sentences)
  7 1,558,000 3 years and 6 months
  8 545,300 3 years and 6 months
 

(7th and 8th charges are to be concurrent sentences)

  9 1,560,000 3 years and 6 months
  10  98,000 3 years and 6 months
  (9th and 10th charges are to be concurrent sentences)

15.I also give him the usual one-third discount.  The sentences after such discount are as follows: 

  Charge Amount HK$  Sentence after discount
  1 389,500 2 year and 4 months
  2 1,503,760 2 years and 4 months
  3 975,000 2 years
  4 975,000 2 years
  5 1,324,300 2 years and 4 months
  6 662,150 2 years and 4 months
  7 1,558,000 2 years and 4 months
  545,300 2 years and 4 months
  9 1,560,000 2 years and 4 months
  10  98,000 2 years and 4 months

16.Because of the partial restitution, I give him a discount of 4 months for each charge due to the partial but very substantial restitution.  There are no other mitigating factors.  The sentences shall be as follows:

  Charge  Amount HK$ Sentence after discount
  389,500 2 years
  2 1,503,760  2 years
  3 975,000 1 year and 8 months
  4 975,000 1 year and 8 months
  5 1,324,300 2 years
  6 662,150 2 years
  7 1,558,000 2 years
  8 545,300 2 years
  1,560,000 2 years
  10 98,000 2 years

17.On totality, I make the final adjustment as follows:

(1)  1st and 2nd charges, 2 years concurrent with each other;

(2)  3rd and 4th charges, 1 year and 8 months concurrent with each other, 6 months consecutive to 1st and 2nd charge;

(3)  5th and 6th charges, 2 years concurrent with each other, 6 months consecutive to 1st to 4th charges, the other part concurrent with all charges;

(4)  7th and 8th charges, 2 years concurrent with each other, 6 months consecutive to 1st to 6th charges, the other part concurrent with all charges;

(5)  9th and 10th charges, 2 years concurrent with each other, 6 months consecutive to 1st to 8th charges, the other part concurrent with all charges. 

18.The total length of imprisonment is 4 years.

  EDDIE YIP
DEPUTY DISTRICT JUDGE
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