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Two others deny role in promoting and selling stocks of small-cap firms

A former ING Investment Management executive  was convicted of bribery yesterday   in the first successful ICAC prosecution of a fund manager.

Adrian Foo Tiang Hock had pleaded guilty in Wan Chai District Court to three charges over  a $6 million stock scam involving shares in three listed companies.

Former SBI E2-Capital China Holdings director Louis Lin Chak-pui  admitted two counts of bribery arising from the same scam.

Foo pleaded not guilty to two further bribery and fraud charges while Lin denied a further count of bribery. Both men were remanded in custody until April 19 for the  cases to  be heard.

Also  in court yesterday were former UBS Securities Asia research analyst Nicholas Tan Chye Seng and Li Man-tak, a former executive director at Kwong Hing International Holdings. Tan pleaded not guilty to one charge of bribery, while Li denied three charges.

The four men were among 20 financial executives arrested in February last year  during an Independent Commission Against Corruption investigation into fraud involving the promotion and selling of stocks in small-cap firms.

Prosecutor David Fitzpatrick told the crowded court that in July 2003, Li was introduced to Foo by Lin and Vincent Yum, the former senior vice-president of  SBI E2-Capital.

The men agreed that Foo would use ING's fund to take up 15 million shares of dyed-yarn maker Kwong Hing and hold them for six months.

'In return, Li would give an advantage equivalent to the difference between the market price and 92 cents per share for 3.8 million shares of Kwong Hing, to be shared by Foo, Lin and Yum,'  Mr Fitzpatrick said.

In September 2003, Foo used ING's fund to buy 15 million Kwong Hing shares, he said. Between August and December 2003, on three separate occasions Li paid Yum about $1.8 million, which was shared by Foo, Lin and Yum.

On February 25 last year,  Li met Lin and Yum outside the car park near the Star Ferry Terminal in Central, where Li handed over $594,500,  Mr Fitzpatrick said. Soon after the payment, Li, Lin and Yum were arrested by ICAC officers.

The case continues.



Executives admit taking bribes in $6m scam