Imprisoned socialite admits credit fraud
Disgraced socialite Mo Yuk-ping, who is serving a 31/2-year sentence for share-price manipulation and perverting the course of justice, yesterday admitted fraudulently obtaining nearly $50 million in credit from five banks in Hong Kong.
Mo, 43, the wife of jailed mainland tycoon Chau Ching-ngai, pleaded guilty to 12 counts of conspiracy to defraud before Deputy Judge Colin Mackintosh in the District Court. The judge ordered an adjournment until tomorrow to hear mitigation from defence counsel Ronny Wong.
Judge Mackintosh was told by prosecuting barrister Robert Andrews that Mo conspired with businessman Chu Lai-ting, 80, to fraudulently take out 12 letters of credit from HSBC, Hang Seng Bank, Chekiang First Bank, BNP Paribas' Hong Kong branch and DBS Kwong On Bank.
Chu was granted immunity from prosecution in return for serving as a prosecution witness but did not testify because of Mo's guilty plea.
A company owned by Mo and Chau obtained $49,158,526 from the banks between September 6, 2001, and January 21, 2003. Mr Andrews said the company, Win Victory Holdings, and Chu's Nam Hoi Trading Company were used to facilitate the swindle.
He said false documents from Nam Hoi and Win Victory were submitted to the banks to justify payments to Win Victory.
Believing there were real transactions between the two companies, the banks arranged credit facilities for Chu and deposited money in Win Victory's account on 12 occasions.
The court was told the purpose of the scam was to 'provide a cash flow for [Mo]', who would repay Chu with interest at a monthly rate of about 14 per cent in return.
The prosecution confirmed Chu had paid back the money so none of the banks had suffered any losses.
