A Golden Harvest director told a jury yesterday how he and chairman Raymond Chow Ting-hsing were duped into investing with an arm of the Credit Suisse Group by a private banker offering bogus interest rates. Peter Chan Shiu-wing, 31, allegedly used family connections and the promise of a 15 per cent interest rate on US dollar time deposits to persuade Peter Choy Tuk-sang to open an account. Mr Choy, a Golden Harvest director, was introduced by Chan to Swiss Volksbank, a wholly owned subsidiary of the Credit Suisse Group, in late 1996. Chan had been recruited by the bank in 1994 to make use of his good education and personal contacts. However, his performance in August 1996 was dubbed 'moderate', and he was failing to meet targets. The banker was given three months to improve his client base, the court heard. Shortly after, Chan approached Mr Choy. 'His [Chan's] father was my friend who was quite a wealthy doctor, and his father-in-law was my good friend and was extremely successful in his business,' Mr Choy told the Court of First Instance. 'And at the time when I came to know Peter Chan, he impressed me as being a very reliable young man and I wanted to help him,' he said. Although he was surprised at the 15 per cent interest rate, Mr Choy was assured by the accused that the bank wished to generate more business, hence the high rate. The banker suggested Mr Choy open an account and obtain loan facilities up to 90 per cent of the value of the fixed deposit, it is alleged. Mr Choy opened two accounts and deposited US$20.25 million. A further $6 million was deposited from company accounts. Mr Choy also acquainted Golden Harvest boss Mr Chow with the 'appealing' rate of interest on offer, he told the court. An account with Swiss Volksbank was opened in Mr Chow's name in October 1996. He believed he was paying only 5.25 per cent on a loan of $2 million, it was alleged. Bogus loan confirmation notes were issued, the prosecution alleges. In March 1997, it came to the notice of Credit Suisse officials in Hong Kong that the company was said to be guaranteeing 15 per cent interest on US dollar time deposits, according to the prosecution. Immediate inquiries into the rumours were instigated and Chan was arrested in March last year. The prosecution said the bank would not offer such rates of interest, nor would it agree to loan money at the base rate of Libor (London interbank offered rate). Neither Mr Choy nor Mr Chow lost money as a result of Chan's actions. Chan denies 16 counts of using a false instrument, two counts of procuring a bank credit by deception and one of false accounting. The case, before Mr Justice Azizul Suffiad, continues today.