A DISTRICT Court judge erred in imposing a suspended sentence on a bank manager and a company proprietor for defrauding Ka Wah Bank of $4.8 million through a cheque-kiting scheme, the Appeal Court heard yesterday.
Senior Crown Counsel Mr Ian McWalters, seeking a review of the sentences, argued it was a serious breach of trust on the part of Lee Kun-wai and a suspended sentence failed to reflect the criminal conduct of Lee and Chan Siu-ming, who was the instigator of the fraud.
Lee, 39, former assistant manager of Ka Wah Bank, and Chan, 43, had pleaded guilty before District Court Judge Daniell to having conspired together between May and November 1990 to defraud the bank.
While Lee was sentenced to six months' jail, suspended for one year, Chan was sentenced to one year, suspended for two years.
The court heard Chan had cash problems in his marine products business.
Knowing he would not be able to obtain legitimate credit facilities from the bank, Chan sought help from Lee, who allowed him to have overdraft and loan facilities without adequate security. When the fraud was discovered that November, the bank had been exposed to a risk of $4.8 million.
Asking the court to review the sentences on the grounds they were manifestly inadequate and wrong in principle, Mr McWalters said it was a serious breach of trust on the part of Lee who held a senior position in the bank.