Read the full judgment text of DCCC 1029/2008 on BabelCite. This District Court judgment was delivered on 8 September 2009 before H.H.J. Li, Chief District Judge.
Criminal law – managing a vice establishment – assisting in the management of a vice establishment – dealing with proceeds of an indictable offence – sentencing – three saunas operated as vice establishments offering sexual services alongside licensed massage – D1 as controlling boss of all three establishments – whether immediate custodial sentence warranted – starting point of 30 months for D1's three managing counts with concurrent sentences and 1 month deduction for prosecutorial delay – assistant managers/licensees of S1, S2 and S3 convicted of assisting in management – whether custodial sentence appropriate absent exploitation and absent additional gain – starting point of 12 months for D2-D9, with 1 month deduction for delay, giving 11 months each – D1 additionally convicted of six counts of dealing with proceeds of an indictable offence under s.25 of Cap. 455 – total bank-account proceeds in multi-millions for each of S1, S2 and S3 – problem of apportionment where business income mixes legitimate massage and illicit sexual services – whether court should apply a discount to total turnover in estimating vice-derived proceeds – court applies 40% discount for S1 (which had three distinct massage sections) and 30% discount for S2 and S3 – sentencing principles in HKSAR v Leong Wai Keong (CACC 476/2007) and HKSAR v Fan Shek Hung (CACC 393/2006) followed – D1's role as controller and knowledge of sexual services treated as aggravating – totality principle applied so that 1 year of the S2 proceeds sentence runs consecutive to the S1 proceeds sentence, 1 year of the S3 proceeds sentence runs consecutive to the S1 proceeds sentence, and 1 year of the managing-counts sentence runs consecutive to the total proceeds sentence – aggregate sentence for D1 of 6.5 years imprisonment – 11 months imprisonment each for D2, D5, D6, D7, D8 and D9 – D1's medical condition (Obstructive Sleep Apnoea Syndrome) held not to warrant additional reduction in absence of particulars of treatment or effect on life expectancy – old previous convictions not treated as aggravating – SARS-related economic downturn accepted as context but not a full mitigating factor – reference to subsequent appeals in CACC 301/2009.
Legal issues: Starting point and final sentence for D1 managing three vice establishments · Sentence for D2-D9 assisting in management of a vice establishment · Discount methodology for proceeds of vice activities mixed with legitimate business · Application of the totality principle to D1's multiple sentences
Outcome: D1 sentenced to a total of 6.5 years imprisonment; D2, D5, D6, D7, D8 and D9 each sentenced to 11 months imprisonment.
Cited by 2 cases · Cites 2 cases