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Cliff Buddle

A JUDGE yesterday expressed surprise that the managing director of a Jardine Matheson investment company should wish to come to court to testify on behalf of an employee who stole $4.2 million from clients.

  Deputy Judge Davies said: 'I am wondering why they are prepared to come forward when such damage has been effected not only to their clients but to Matheson PFC by their employee.

  'Clearly they have, to say the least, been embarrassed, if not financially embarrassed, by what he has done.'   The judge adjourned sentence on fund manager Fung Wai-hung, 29, for a week so his former boss, Paul Tagg, could attend the District Court to give evidence.

  Steven Smout, defending, said Mr Tagg, who returns to Hong Kong today, is prepared to give evidence relating to Fung's highly successful career with the company before the offences.

  Fung pleaded guilty to 16 charges of theft from customers between March 1993 and September last year.

  The court heard he worked his way up the ladder at Matheson PFC (Personal Financial Consultants) Ltd, a company which deals in mutual funds and unit trusts.

  He joined the firm as an office boy in 1987 and by the time of his arrest was earning almost $400,000 a year as an investment representative.

  Mr Smout said: 'He is an ambitious young man who through his own drive, energy and hard work has considerably improved his employment status.

  'One of the unfortunate effects of his success as an investment adviser was to instil in the defendant an excessive self-confidence in his own advice,' he said.

  Fung, the court heard, was tempted by a 'moment of greed' to steal on the first occasion and felt certain he would invest the money so successfully he would be able to pay his client back.

  Mr Smout said: 'He was, of course, completely wrong. The investment was a disaster. He attempted a second illegal transaction which again backfired miserably. In a desperate effort to recoup the losses the defendant spiralled ever downwards.'   Fung escaped detection but, overwhelmed by guilt, he suddenly confessed all to the police on September 26.

  Mr Smout said Fung would never again be able to work in the field in which he had been so successful. His girlfriend of 10 years ended their relationship after hearing what he had done.

  'It is to this defendant's credit that he came forward to the police of his own volition, filled with contrition, to face the music,' Mr Smout said.

  Prosecutor Frederick Chung said Fung's job was to seek new business from investors, offer them advice and arrange investments for them.

  He stole funds by switching money into accounts to which he could gain access.

  On some occasions Fung forged the signature of his clients in order to redeem their funds so he could steal the proceeds.

  Three victims who contacted the defendant before his arrest and asked for their money back were repaid, the court heard.

  But almost all of the money he stole was gambled away on the foreign exchange market.

  The losses have been met by the company.



Jardines boss to testify for $4m thief