Fraud claimed

A WORKER plotted with his boss to cheat silk firms out of $34 million by passing them dud cheques, the District Court heard yesterday.

Hong Chun-ho, 23, denied two charges of conspiracy to defraud.

Boss Tang Wing-sing, 30, who faces 20 charges, jumped bail last June.

The court was told five silk firms sold large orders to Tang's Century Company from November 1992 to February 1993.

Century had sent post-dated cheques that bounced and sold the goods. The court heard that, at Tang's request, Hong set up three shell companies in whose name the cheques could be written.

Hong also allegedly pretended he had been arrested, so the silk firms would believe Century was under investigation and so they would not be paid.