Former director accused in plot to swindle banks of $45m

A former company director appeared in court yesterday accused of plotting to swindle four banks out of more than HK$45 million.

Zhang Kang-ping, 56, former director and deputy general manager of state-owned Ringo Trading, a subsidiary of state-owned China Poly Group, denied two charges of conspiracy to defraud.

Prosecutor Graeme Mackay told the Court of First Instance that four banks - Liu Chong Hing, Societe Generale, Dao Heng and Standard Chartered - were deceived between December 1996 and February 1997 into issuing credit facilities involving 11 letters of credit.

In all, these 11 letters of credit amounted to HK$42,370,165 and US$407,400.

Mr Mackay said Zhang, on behalf of Ringo Trading, set up another company in Hong Kong - Ringo Fortune International - with a person called Ma Gang-quan who owned a 70 per cent interest.

The pair allegedly entered into an agreement for Ringo Trading to assist in obtaining letters of credit and to guarantee the sums paid under them while Ringo Fortune International would pay handling charges.