The former chairman of Ocean Grand Holdings and his sister stood trial yesterday on a series of fraud charges for what were described in court as schemes involving fake and overly expensive purchase orders for metal-processing machinery.
Michael Yip Kim-po, 48, and his sister Yip Wan-fung, 41, an Ocean Grand director, pleaded not guilty in the District Court. Also on trial were Yip Wai-lun, 44, a company project director, and three people appointed directors of shell companies used in the schemes: Keith Siu Kin-fung, 33, Lau Hok-man, 57, and Tsui Pui-sze, 27. Together, they are facing 18 charges, including conspiracy to defraud, publishing a false statement, theft, dealing with the proceeds of an indictable offence and accessing a computer dishonestly.
Zhu Weibing, an Ocean Grand financial controller was also said to have participated in the schemes but does not face charges.
Under a scheme allegedly orchestrated by Michael Yip, his sister and Yip Wai-lun, two Ocean Grand subsidiaries paid HK$136.7 million to Greatson Corporation, purportedly an agent specialising in trading in metal-processing machinery, prosecutor Peter Duncan SC said.
Greatson in turn had a contract to buy machinery from Cometal Engineering for HK$109.7 million for one of the Ocean Grand subsidiaries.
Of the total HK$136.7 million paid to Greatson, only HK$15.5 million was paid to Cometal, while the remaining HK$121.2 million was paid to companies whose directors were close to Michael Yip and his sister.