• Fri
  • Aug 22, 2014
  • Updated: 10:36am
NewsHong Kong
COURTS

Carson Yeung lost HK$15.4m in stocks: prosecution

Prosecution argues Carson Yeung did not make a killing dealing shares in 2001, but tycoon says expert report is based on incomplete material

PUBLISHED : Wednesday, 06 November, 2013, 5:56am
UPDATED : Wednesday, 06 November, 2013, 5:56am

Carson Yeung Ka-sing's claim that he made a killing on the stock market was yesterday challenged by the prosecution, which said that the Birmingham City Football Club boss had instead suffered a sizeable loss in 2001.

Referring to a report prepared by the prosecution's accounting expert, prosecutor John Reading SC said that the hairdresser-turned-tycoon lost about HK$15.4 million in stock dealings in 2001, despite his earlier assertion that he had made a profit of HK$200 million.

However, Yeung told the District Court yesterday: "[Forensic accounting expert Roderick Sutton] did not have the source materials. Whatever way he added up the figures, the result is wrong."

Yeung denies five counts of money laundering totalling HK$721 million. The offences, which allegedly took place between January 2001 and December 2007, involved five bank accounts with Wing Lung Bank and HSBC.

The son of a vegetable stall owner has been explaining to the court how he amassed wealth of up to HK$100 million from running successful upmarket hair salons and parlaying his earnings into savvy investments in real estate and stock dealings.

The 53-year-old also criticised Sutton's reports for failing to reflect his actual financial portfolio and movements.

Speaking of some deposits into his accounts, Yeung said: "In his report, Mr Sutton copied the information from Johnny Kwan. And Johnny Kwan is a police officer, not an accountant.

"Materials supplied by him may not be sufficient for [Mr Sutton] to compile his report."

Yesterday, the court heard that Yeung operated a consultancy firm in the early 2000s to help mainland state-owned enterprises get listed on the Hong Kong stock exchange.

He said: "Our role was to conduct assessments on all [their] assets and give them proper advice as to what procedures they had to follow when they came to Hong Kong for the listing process."

Asked in what professional capacity he could give the advice, Yeung replied: "My personal experience."

Meanwhile, the prosecution pointed out that Kingston Finance, chaired by Nicholas Chu Yuk-yui, extended a loan of HK$140 million to Yeung's firm, Grandtop International, in 2007.

Asked why the loan was given, Yeung said: "I think they thought our plan was OK. At the time, I had shares as security with them. I also signed a personal guarantee."

The court heard that Kingston Securities - another company under Chu's Kingston Financial Group - was the underwriter of Neptune Group, which Yeung had once invested in.

The hearing continues tomorrow.

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