Fourth writ filed over failed Villa Pinada development
The embattled property firm behind the failed Villa Pinada development has been hit with a fourth writ seeking the settlement of unpaid bills.
Sub-contractor Yuen Cheong Engineering filed the writ in the High Court yesterday seeking to recover from True Gold Investments $6.35 million, being the balance outstanding on a $25.85 million contract for installation of plumbing and drainage works at the luxury development in Chung Shan, Tuen Mun.
Three other companies seeking to recover a total of $73.38 million have sued a director of True Gold Investments, Tai Chi-wah, and related companies in High Court actions filed this week.
Tai, 47, managing director of Gold-Face Holdings, is one of two executives of the property subsidiary charged with conspiracy to defraud over the failed development.
He was released on $1.8 million bail following an appearance in Eastern Court last week, where no plea was entered.
During Tai's appearance before magistrate David Dufton, the court heard he and company financial controller Lim Hau-chun, 50, allegedly conspired with other people to defraud Paul Daniel Emerson, principal of Emersons law firm.
The legal firm maintained an account for stakeholders in the project with the Bank of China (Hong Kong). The money had been deposited by buyers of uncompleted flats, the court heard.
It was said that Tai and Lim created fake documents relating to construction work supposedly completed on Villa Pinada to get the solicitors to release money to True Gold from the accounts of buyers, the court heard.
It is alleged the two defendants disposed of the bulk of the funds for purposes not connected to the project's construction.
