Source:
https://scmp.com/news/hong-kong/article/1123356/guangdong-man-accused-laundering-hk50m-day-eight-months Hong Kong
Guangdong man accused of laundering HK$50m per day for eight months
Luo Juncheng, from Guangdong, allegedly laundered HK$50 million a day for a period of eight months, totalling HK$13 billion.
A mainlander allegedly laundered HK$50 million a day for a period of eight months, totalling HK$13 billion, a court heard yesterday.
The alleged laundering took place between August 2009 and April 2010, with most of the funds being funnelled in and out via internet transfers.
Prosecutor Thomas Iu said Luo, from Guangdong, made 4,800 deposits and 3,500 transfers out of a Chiyu Bank account.
"This case involves a young man from mainland China, a company set up in Hong Kong, and the fact that HK$50 million went through the account every day over eight months," Iu said.
On July 30, 2009, Luo bought a company called Ace Creation Development from a secretarial company in Hong Kong, Iu said.
On August 3, Luo came to Hong Kong as a visitor to set up a bank account with Chiyu Bank in the name of the company.
Ten days later, he came to Hong Kong again, to set up a personal bank account with the same bank with an initial deposit of HK$500.
From September 9, 2009, large sums of money began to flow into the company account. On that day, some HK$2.6 million was deposited.
The source of the funds was not disclosed in court yesterday.
Iu said most of the funds were funnelled in and out by internet transfers. At other times, Luo made cash and cheque deposits.
The funds were usually channelled out almost immediately to people whose names were not disclosed in court.
Luo also transferred about HK$3.5 million from the company account into his personal account, which he used to buy shares. He later transferred HK$2.6 million from the personal account back into the company account, which was then paid out to other people. On this occasion, he made the transfer by signing documents in Hong Kong.
The company account was frozen after the abnormal activities came to the attention of the police.
Luo was the only signatory of the account and the only person controlling the company, which had no business in Hong Kong. Neither Luo nor the company filed any tax returns, the court heard.
Madam Justice Esther Toh Lye-ping adjourned the case until today.