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SCMP Reporter

An alleged swindler went on trial without a lawyer yesterday in a $150 million fraud case involving mainland food conglomerate Guangnan (Holdings) Ltd.

Tsoi Chak-fai, 45, denied 12 counts of conspiracy to defraud in the Court of First Instance.

Mr Justice Louis Tong Po-sun told the jury that Tsoi's decision to represent himself was irrelevant to the issue before them - the accused's guilt or innocence. 'I ask you to exercise great patience and to ignore certain matters [which may be] said or done by the defendant,' he said.

Outlining the prosecution case, barrister Michael Poll said 12 banks were cheated into releasing more than US$17.8 million (HK$139 million) and HK$11.5 million to two trading companies of which Tsoi was in charge between April and November 1998.

The companies, Guangnanyuen Overseas and Kwok Wah Overseas, purported to be selling goods to Victory Land, a subsidiary of Guangnan (Holdings) Ltd, but the goods did not exist, Mr Poll said.

Guangnan applied for letters of credit on behalf of Victory Land, causing the banks to release the funds, the court heard.

Instead of pocketing the money as payment for goods, Guangnanyuen and Kwok Wah sent it to Victory Land, and eventually to Guangnan, which used the sum to boost its profit accounts or clear its debts, Mr Poll said.

Tsoi plotted with at least five people to cheat the banks, though he may not have been aware of Guangnan's use of the money, Mr Poll said. Of the $150 million, a total of $60 million remained outstanding.

Tsoi, the only person on trial yesterday, signed documents, including invoices and cargo receipts, which were used as evidence of the bogus transactions to secure letters of credit.

Mr Poll asked the jury to decide what was in Tsoi's mind when he signed the documents and received the money which he sent back to Victory Land.

The trial continues today.



Accused fraudster denies role in alleged $150 million credit scam