Carson Yeung

Bank free to evict Carson Yeung’s family from Peak home

PUBLISHED : Thursday, 31 January, 2013, 5:20pm
UPDATED : Thursday, 31 January, 2013, 5:21pm

A Hong Kong bank can now evict troubled businessman Carson Yeung Ka-sing – plus his mother, his lover and two children – from their house on The Peak over a defaulted mortgage, the High Court ruled on Thursday.

In finding for the bank, the High Court also ordered Yeung’s live-in girlfriend and his mother to pay HK$200,000 in legal costs to Wing Hang Bank. The court rejected the two women’s application to participate in the case.

In June last year, the bank won a possession order for the house at 31 Barker Road, The Peak, which is owned by a company owned by Yeung – the owner of the English football club Birmingham City.

The suit arose from a HK$50 million mortgage that Yeung took out on behalf of his company in 2010. The bank sued Yeung, the guarantor, after he failed to make repayments on the loan.

But enforcement of that order was put on hold by an application from Yeung’s lover, Wang Lifei, and his mother, Yung Sau-mui, to participate in the case. They said they were the beneficiary owners of the house, and that the home was not an asset of the company.

On Thursday the bank condemned the application by Wang and Yung as an attempt to delay the matter for as long as they could.

High Court Registrar Lung Kim-wan dismissed Yeung’s claim that the company had been holding the house on trust for him.

Lung noted that it might look like a fraud case if Yeung insisted that he, instead of his company, was the true owner of the house, since no such information was disclosed to the bank when the mortgage was taken out.

But given the lack of information, Lung said he would not proceed on the basis that Yeung defrauded the bank.

Since Yeung’s claim could not be established, his lover and mother could not assert interests in the property, Lung ruled.

The bank can now move to enforce last June’s vacant-possession judgment and sell the house to recover the outstanding loan, unless Yeung files an appeal.

The trouble-hit businessman is due to stand trial in April for allegedly laundering HK$700 million. He has been freed on bail of HK$7 million cash and another HK$7 million in surety, and barred from leaving Hong Kong.

All his assets were frozen by a court-ordered injunction, imposed soon after his arrest in June 2011.