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THE cut-throat world of foreign exchange trading formed the backdrop to the trial.

   Magistrate Jonathan Acton-Bond said one of the lessons he had learned was never to get involved in the forex business.

  The key figures in the trial, which spanned 51 days, all had an interest in currency speculation.

  Albert Yeung has an international exchange company under the Emperor umbrella.

  Prime witness Jacky Man Lun-chi was the director of Yiu Wing Finance, a forex company.

  Tse Tak-ching, another prosecution witness, heads Tse's Gold Dealing and Investment.

  The men's paths crossed for the first time last year when Mr Man was introduced to Mr Yeung.

  But a proposal for joint business between Yiu Wing and Emperor did not work out. Mr Yeung was asked to put up capital of between 10 million and 30 million yuan (HK$9.3 million and $27.9 million).

  Then, late last year, Mr Man approached Mr Tse to discuss the possibility of co-operation.

  According to the defence case, at the time, Mr Tse's fledgling forex business was facing difficulties.

  It was suggested that on one occasion Mr Man told the Emperor Group boss that Mr Tse's forex company was in imminent danger.

  Defence lawyers claimed the firm's second-biggest shareholder, businessman Tse Siu-luen, was planning to withdraw.

  This would have led to a loss of confidence, the court heard.

  Mr Tse and Mr Man denied these claims. Mr Tse Siu-luen still holds his shares.

  But the main concern was the performance of the company in Macau, the court heard.

  Macau became another battle-ground for forex trading after Hong Kong's Securities and Futures Commission introduced legislation last year.

  This required the margin of leveraged forex trading to be at least five per cent of the deal's value.

  Those who did not want to place large deposits with their dealers started trading in the enclave.

  Defence lawyers suggested the only real threat to Mr Tse's business in Macau came from the Emperor Group.

  The key to success in the forex field is the account executive, the employee in the front line touting for business.

  Emperor offered a more attractive employment package to Mr Tse's account executives, the court heard.

  The defence claimed it was this that motivated Mr Man to approach the Emperor boss.

  The deal, it was claimed, was that Mr Man would arrange for the key witness in Mr Yeung's criminal intimidation trial to be persuaded not to give evidence.

  In return, Emperor would make its offer to account executives less attractive and call a truce in the battle.

  Mr Yeung reported this offer to the Independent Commission Against Corruption, whose agents monitored the rivals' next meeting, the court heard.

  But this suggestion was rejected by Mr Man. He testified the proposal to reduce terms for employees was simply a signal for the parties to proceed to further talks concerning the witness, Michael Lam Yih-jiun.

  Late last year, Mr Tse recruited some of Mr Yeung's staff, including Mr Lam, Emperor International Exchange's branch president.

  During the criminal intimidation trial, prosecutors gave this as Mr Yeung's motive for allegedly holding Mr Lam prisoner and threatening to break his legs.

  Mr Yeung was cleared of criminal intimidation and false imprisonment when a magistrate ruled he had no case to answer in May.

  After being cleared for a second time yesterday, the tycoon refused to comment on how his business had been affected by the case.

  It remains to be seen whether he will follow magistrate Mr Acton-Bond's example and steer clear of the forex business in future.



Cut-throat world of forex backdrop