A police constable once commended for bravery found himself in the dock yesterday. Fung Kwok-fai, 28, admitted selling pirated CD-ROMs in a shop he co-owned and then attempting to pin the blame on a scapegoat. The officer was praised for his conduct in the Kwun Lung Lau Estate landslide during 1994 in which five people died. In Eastern Court yesterday, Fung admitted possessing 22 pirated CD-ROM discs for sale in his Wan Chai store and perverting the course of justice. Business partner Cheng Man-kit, 26, and sales assistant Lau Kin-chi, 27, admitted the same charges. Fung, Cheng, and computer program analyst Law Yiu-kwong set up a company, Power Engineering System, in January last year and opened a shop in the Oriental 188 Plaza in Wan Chai selling computers and pirated compact discs, the court heard. But a financial dispute saw Mr Law leave the company two months later. He was later granted immunity to testify for the prosecution. With the business failing to make a profit, Fung considered leaving and treating his investment as a loss, the court was told. But he was persuaded to stay on and run the shop in his spare time away from his police work. The defendants also claimed it was Mr Law's suggestion to persuade another man - whom Fung met while on police work - to register as Power's proprietor so he would be the scapegoat in the event of a raid by Customs and Excise officers. Fung, Cheng and Lau were arrested following a search by Customs officers on August 24 last year. Five of the 22 pirated discs carried false Microsoft trademarks. The prosecution offered no evidence on an allegation that Fung had tried to persuade the man they made proprietor not to testify in court. Fung, most recently attached to Wan Chai police station, had been suspended from the Force since the charges were brought, the court was told. Magistrate Alan Wright adjourned the case to September 5 pending background reports on Lau.