HKMEx probe finds more 'fake' documents

Trio from mainland charged with having more than 30 suspect bank documents

PUBLISHED : Saturday, 20 July, 2013, 12:00am
UPDATED : Saturday, 20 July, 2013, 4:07am

Prosecutors have uncovered many more suspected forged documents held by a mainland trio who are charged in a scandal over the collapsed Hong Kong Mercantile Exchange (HKMEx), a city court heard yesterday.

The number of allegedly bogus documents had increased from 11 to 32 in the charges against Dai Linyi, 55, Li Shanrong, 49, and Lian Chunren, 50, prosecutor Ira Lui Tsz-ming told Kowloon City Court.

Lui said the prosecution amended the charges after the police finished collecting the evidence.

Dai now faces two counts of possessing false instruments and Li and Lian one count each.

Dai is also accused of having overstayed in Hong Kong for 16 days when he was arrested.

The prosecution did not specify how the three men might be linked to the exchange.

Police detained the suspects after the Securities and Futures Commission found serious irregularities with the finances of the HKMEx, chaired by then-executive councillor Barry Cheung Chun-yuen.

Court documents show the allegedly counterfeit materials are mainly bank documents, including a letter of guarantee from Standard Chartered Bank, dated April 23 and apparently undertaking to pay US$460 million to a person named Zhang Jisheng.

There is also a "proof of funds" statement issued by HSBC, confirming that US$10.6 billion was deposited into a bank account in the name of the Phyllis Petroleum Group.

The prosecution said it was preparing to transfer the case to the District Court in Wan Chai.

The three men, who have been remanded in custody, will reappear in Kowloon City Court on August 5 to complete the transfer procedure.