HKSAR v. Ho Siu Po

DCCC676/2009

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

CRIMINAL CASE NO. 676 OF 2009

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Reasons for Sentence

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1. Defendant, you were convicted after trial of one offence of conspiracy to defraud, contrary to Common Law and punishable under section 159C(6) of the Crimes Ordinance, Cap. 200.  I dealt with the facts at length in my Verdict and do not intend to repeat them, they are well-known to all parties.

2. Suffice it to say you defrauded the creditors of Cheery City Contractors Limited, a company of which you were the majority shareholder.  This was effected by establishing a company of the same name and with a bank account in Macau the co-conspirator, PW3, made the arrangements.  He then, at your behest, collected and paid into the account the six cheques, to a total value of $1,320,571.85 from another company.  This was money properly owed to Cheery City.  PW3, then again at your behest, withdrew the money, was given payment by reward and the balance was kept by yourself. 

3. It was accepted, and I do so accept, that you are one of the main, if not the main creditor of Cheery City.  You are a man of hitherto good record.  I adjourned sentence in order to obtain Probation officer’s background report and a medical report. 

4. Those reports are before me now and have been considered by me.  The medical report confirms you to have many problems and the need for treatment to improve the situation.  At the moment, the doctors found you to be in a stable condition but still suffering from the after-effects of the stroke which occurred in 2008. 

5. On your behalf, Ms Leung entered mitigation.  Previously she had told me of your charitable contributions and referred me to a letter of commendation from the Police.  Ms Leung then emphasised your clear record, your many health problems and that the result of the litigation had been that you had suffered a great deal.  Your financial circumstances had dramatically worsened, this included the loss of your home.

6. I was also asked to take into account the fact that if litigation against China State Construction Limited is successful, then all creditors, including yourself, should be paid in full.  However, the converse of that is that if that litigation is not successful, then little or nothing will be paid.

7. I turn now to the sentence.  In sentencing you I do take into account the amount which is just over $1.3 million.  I note this is not of the highest and I also take into account that you had some legitimate claim to that, though not at that point in time.  You were, as I have referred to previously, a major if not the major creditor of Cheery City.  What you were doing is in fact jumping the queue at a time when you were not entitled to do so.  Also, I note that your method was well-planned and sophisticated and involved others to execute it.  The creation of a parallel bogus company and a bank account in Macau were the engine by which it was achieved.  The evidence, in my opinion, was and remains overwhelming.

8. I do note that you show no remorse for what you did. I do take into account your clear record, your charitable works and your health problems.  There is nothing sufficient to amount to positive good character, in my opinion.  Taking all the facts into account, especially the amount involved, the sophistication of the scheme and that you did have some legitimate claim to the money, though not at that time, you will go to prison for 21 months.

9. Finally, could I thank counsel for their assistance in this matter throughout the trial and throughout sentence.