3 found guilty of conspiracy to commit fraud

The District Court yesterday found two incumbent directors and a former director of listed financier Upbest Group guilty of fraud for their roles in assisting Grand Field Group Holdings' former boss to cover up a fake transaction in 2002.

District Court Judge Albert Wong Sung-hau ruled that Upbest directors Charles Cheng Kai-ming and George Li Kwok-cheung as well as former independent director David Wong Wai-kwong were guilty of conspiracy to deal in the proceeds of an indictable offence.

Cheng is a veteran broker with more than 30 years of experience who founded Upbest to help companies conduct share placements. Li was his right-hand man, while Wong was an accountant offering consultancy services to Upbest.

The judge said there was strong evidence the trio helped Grand Field chairman Wayland Tsang Wai-lun and his wife, Nancy Kwok Wai-man, to sell a bogus HK$63 million investment in a Chongqing gas pipeline venture in 2002, although they knew the project was fake.

Tsang and his wife have also been found guilty of the same charge. The judge on Wednesday ruled the couple guilty of conspiracy to defraud and conspiracy to give false information to the stock exchange and shareholders.

The five defendants now face up to seven years in jail - the maximum sentence the District Court can hand down. Sentencing will come after the judge hears mitigation arguments on March 15.