Seven charged over Shanghai Land fraud plot

Two partners of international law firms Deacons and Paul Hastings, along with five other people, have been arrested by Hong Kong's anti-graft agency and charged with conspiracy to defraud in connection with corruption involving disgraced tycoon Chau Ching-ngai.

The Independent Commission Against Corruption has also obtained a warrant for the arrest of Chau - a property developer once billed as China's 11th richest man - for his alleged role in the case concerning the acquisition of imGO Ltd, later renamed Shanghai Land.

Chau was freed from jail in Shanghai in May after serving nearly two-thirds of a three-year term imposed in June 2004 for manipulating stock prices and falsifying the registered capital of subsidiaries of his flagship company Shanghai Nongkai Development Group.

Lai Sau-cheong, a Deacons partner since 1993, is among those charged. He is a member of the Inland Revenue Board of Review and a vice-chairman of the legal committee of the Hong Kong General Chamber of Commerce, according to the company's website.

Another Deacons partner, Glenn Haley, said Lai, 46, was a long-standing and well-respected partner. 'He intends to defend the charges vigorously and he has the full support of our company.'

Donald Koo Hoi-yan, 53, a partner in Paul, Hastings, Janofsky & Walker LLP, is another of those arrested and charged. At the time of the alleged offences, Koo was a partner of the firm Koo and Partners, which was later acquired by Paul Hastings. Another former partner of Koo and Partners, Fan Cho-man, 41, has also been arrested and charged. Koo was formerly a director of Shanghai Land.