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A Natural Dairy's franchised store in Fuzhou, China. The court had heard that between December 2009 and February 2010, Natural Dairy had raised HK$790 million to acquire 22 dairy farms in New Zealand.

Solicitor and wife of former dairy firm director jailed for laundering HK$230m

A solicitor and the wife of a former director of listed company Natural Dairy Holdings received prison sentences yesterday for laundering more than HK$200 million.

A solicitor and the wife of a former director of listed company Natural Dairy Holdings received prison sentences yesterday for laundering more than HK$200 million.

Solicitor Wu Wing-kit, 57, was sentenced to six years in prison for laundering HK$68.95 million, and Ye Fang, 43, the wife of Chen Keen, to six-and-a-half years, after they were convicted of dealing with proceeds of indictable offences totalling HK$230 million. Both had pleaded not guilty.

District Court Judge Eddie Yip Chor-man stressed that both had been convicted of handling substantial sums, and that in Wu's case, his "ample professional experience" in the legal field meant he should receive a more severe punishment.

"Had he not been a solicitor, the starting point would be five-and-a-half years," Yip said.

The court heard earlier that between December 2009 and February 2010, Natural Dairy - formerly known as China Jin Hui Mining Corporation - had raised HK$790 million to acquire 22 dairy farms in New Zealand.

Via a number of transactions, HK$68.95 million eventually ended up in Wu's law firm, Fred Kan & Company, and the solicitor deposited the funds to Ye.

The court heard that Ye dealt with a further HK$161 million, besides the HK$68.95 million, from March 2010 to October 2011. The total funds laundered amounted to HK$230 million.

Before the sentencing, Yip said Ye's offence would have earned her an eight-year sentence due to the large sum and the international element, but the District Court could only hand down a maximum sentence of seven years.

Yip also ruled Ye was not under anyone else's influence when she committed the offence.

The judge said he acknowledged Wu's contributions to local charities, and the fact that Wu's family would lose financial support from a breadwinner. He therefore cut the sentence from six-and-a-half years to six years.

Leniency was also shown in sentencing Ye, whose three children would have to live without the support of their mother in their formative years, Yip said. Ye's sentence was reduced from seven years to six-and-a-half.

Ye's husband Chen and two other officials from Natural Dairy were charged with conspiracy to defraud over the purchase of New Zealand-based UBNZ Assets Holdings. Chen was also charged with money laundering.

 

This article appeared in the South China Morning Post print edition as: Duo jailed for laundering Natural Dairy funds
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