Troubled tycoon Carson Yeung facing legal challenge over mortgage
Troubled tycoon Carson Yeung Ka-sing faced another court dispute yesterday when two people sued him for mortgaging his Peak house without their consent.
Yung Sau-mui and Wang Lifei claim in a writ filed with the High Court that Yeung, the owner of English football club Birmingham City, possesses only one quarter of the residence in Barker Road.
They claim that when the house was bought in 2005 - reportedly for HK$146 million - it was agreed that Yeung and Yung would each hold half the interests in the property.
And in May 2009, they agreed Wang would have half the house, with the remaining interest split between Yeung and Yung.
The duo, whose relationship with Yeung is unclear, go on to say in the court document that Yeung took out a HK$50 million mortgage on the house without their consent in November 2010.
Yung and Wang are now asking the court to declare they are part owners of the 5,946 sq ft house and order Yeung to pay them back any losses incurred by the unauthorised loan.
According to land registry records, Yeung took out a mortgage with Wing Hang Bank. He has since been ordered to give up the house after allegedly defaulting on the mortgage, but is appealing against the ruling.
His assets are frozen under a court order sought by the Secretary for Justice after Yeung was arrested in June last year on five counts of money laundering involving HK$723 million. He is due to stand trial next month.
Last month, Birmingham City rejected an Italian consortium's bid to buy the club, saying it was far too low.
In September last year, the cash-strapped club was thrown a lifeline with a loan of up to HK$80 million from Yang Yuezhou, then deputy chairman of its parent company, Birmingham International Holdings (BIHL).
In August, Yeung was stopped from attending his father's funeral on the mainland after a High Court judge refused to amend bail conditions that forbid him from leaving Hong Kong.