On August 20, 2024, Desmond Chan Chi-hung, 63, former sole director and shareholder of the now-defunct Mondex International Industries Limited (MIIL), was sentenced to 30 months in prison at the District Court for his involvement in a major fraud. Chan, who had previously pleaded guilty to 13 counts of conspiracy to defraud, was found guilty of orchestrating the fraudulent acquisition of 63 loans totaling over $82 million and banking facilities amounting to $20.5 million from seven banks. He also deceived the Trade and Industry Department (TID) and the Hong Kong Mortgage Corporation Limited (HKMC) into providing guarantees for loans and facilities totaling $6.9 million. The court considered Chan’s role as pivotal in the scheme and, despite a starting point of four years’ imprisonment, reduced the sentence to 30 months due to his guilty plea and mitigating factors. The fraud occurred between March 2011 and June 2014, with Chan and his accomplices submitting false documents to secure the loans and guarantees. The TID, HKMC, and involved banks cooperated fully with the ICAC investigation.
Resources: https://www.icac.org.hk/en/p/press/index_id_1931.html