Carson Yeung

Jailed Birmingham City owner Carson Yeung sued over HK$2.3 million debt

Money lender serves writ on businessman over loan and interest he has failed to repay

PUBLISHED : Saturday, 15 March, 2014, 4:11am
UPDATED : Tuesday, 25 March, 2014, 6:26pm

Jailed Birmingham City Football Club owner Carson Yeung Ka-sing has been sued by a money-lending company for failing to repay a loan and interest amounting to HK$2.3 million since July last year.

In a High Court writ, Hansom Finance claimed that Yeung - who was last week sentenced to six years in jail for laundering HK$721 million - took a HK$2 million loan from the company on April 10 last year, drawing an undated cheque as security.

But the hairdresser-turned-businessman failed to repay the principal sum by July 10, the repayment date under the loan agreement, the writ stated.

He had repaid HK$120,000 in interest accrued to July 9.

The writ was served to Yeung, whose address was stated as "Stanley Prison".

As of yesterday, the jailed businessman had yet to file an appeal against his conviction on five charges of laundering HK$721 million using five bank accounts at Wing Lung Bank and HSBC from 2001 to 2007.

News reports showed that Yeung took the loan from Hansom Finance before his money-laundering trial began and before he applied for a permanent stay of proceedings, which he lost.

On April 10 last year, Yeung appeared in the District Court for a closed-door pre-trial review. The trial began on May 3 last year.

Lawyers for Hansom Finance wrote to Yeung in July, September and October last year, demanding he repay the principal and interest, the writ stated.

A day before Yeung was jailed for six years last Friday, Hansom Finance presented the cheque supplied by Yeung as security, but it bounced.

The company is now seeking HK$2.33 million as the principal of the loan and interest accrued until March 9.

It is also seeking further interest until the debt is repaid, as well as legal costs.

Yeung took over the soccer club for HK$731 million in 2009. He was arrested in June 2011. He quit all his posts in the club's holding company last month.

The prosecution will apply on April 3 to confiscate some of Yeung's assets, about HK$400 million of which have been frozen by a court injunction.