District Court finds jailed ex-chairman and others conspired to commit fraud The jailed former chairman of Wealthmark International (Holdings) and two relatives were found guilty yesterday of charges of conspiracy to defraud and cheat to get credit facilities from banks that were brought by the Independent Commission Against Corruption. Wong Chor-wo, 54, the former chairman of listed handbag maker Wealthmark, and his cousin, Wong Chun-ping, 50, have been in jail since August after being convicted on other ICAC charges of false accounting and misleading shareholders. The pair and three other relatives yesterday faced charges in the district court of creating bogus transaction records to secure bank loans worth HK$17.75 million. The money has been returned to the banks. Wong Chor-wo and Wong Chun-ping both pleaded guilty. Wong Chor-wo's former sister-in-law and business partner Chung Ching-huy, boss of trading company Belle Sac, pleaded not guilty but was also convicted. The charges against other two defendants, Chung's ex-wife, Wong Bing-wan, and Wong Chun-ping's wife, Chan Sui-yuk, were dismissed. The Wan Chai District Court heard that since 1987, Wong Chor-wo had operated Wallmark Enterprise, which later became a subsidiary of Wealthmark. The court heard that Wong Chung-wo, Wong Chun-ping and Chung created bogus trade records to show there were transactions between Wallmark and two companies, Belle Sac and C.K. Trading, between 1998 and 2004 in a bid to secure lending facilities and a number of letters of credit from banks. In fact, those transactions never existed. While Belle Sac had operations, C.K Trading was a shell company operated by Wong Chung-ping and Ms Chan. In August, Wong Chor-wo was sentenced to six years for fabricating papers to mislead auditors and shareholders to cover up stealing HK$20.8 million from the company. Wong Chun-ping, who handled the illicit proceeds, was jailed for three years on money laundering charges. The pair may now face longer terms for the new charges. In mitigation, the defence lawyers of Wong Chor-wo and Wong Chung-ping said the money involved had been returned to the banks so no lenders had suffered losses. The lawyers also emphasised the defendant's charity works, including donating 7,000 schoolbags to poor school children in China. The defence for Chung said he was involved in the cases only due to his loyalty to Wong Chor-wo. In mitigation, the lawyer said Chung had back pain and underwent surgery in France earlier this year. The hearing continues next Wednesday on matters related to legal opinion and community services reports of the convicted men before the judge passes sentence.