ICAC arrests Convoy chairman at the airport as investigation expands to involve Lerado
Convoy confirms that chairman Quincy Wong was arrested, following Thursday’s arrests of three others including Lerado chairman Mark Mak
The chairman of troubled Convoy Global Holdings, Quincy Wong Lee-man, and two senior executives have been arrested by Hong Kong’s anti-graft body officers, the company announced late Friday night in a filing to the local bourse.
The company said it had suspended the duties of all three, without giving further details. The other two executives, vice-chairman Rosetta Fong Sut-sam and executive director Christie Chan Lai-yee, were arrested on Thursday.
Sources told the Post that Wong was picked up at the airport when he returned on Friday afternoon from a holiday by staff from the Independent Commission Against Corruption.
The arrests on Thursday by the ICAC included a former Convoy chief executive and current chairman of Lerado Financial Group, Mark Mak Kwong-yiu.
The 43-year-old Mak was Convoy’s CEO until he took up his current post in April 2016. He served as an independent director of Lerado between 2014 and 2015 while he was at the helm of Convoy, according to Lerado’s annual report.
Lerado, which is among the stocks already facing enforcement action by the Securities and Futures Commission, is also being investigated by the ICAC, the company revealed in a stock exchange filing on Friday morning. The statement offered little details, but another source familiar with the investigation said it was related to the ICAC’s action on Convoy.
In the filing, Lerado said it had been invited to assist an ICAC investigation.
“The company is cooperating with ICAC in providing documents and records,” said executive director Kenneth Lai Kin-chung in the filing. Lai said the company was taking advice on the best way to proceed and will update investors when more information is available.
The SFC in June had ordered Lerado to suspend trading, alleging that the firm had given misleading information in a 2015 announcement, according to a company filing to the stock exchange in the same month.
On Thursday, the ICAC for the first time joined hands with the SFC to raid offices and premises in eight locations, leading to the arrests of the three senior executives for suspected corruption, according to an ICAC statement, which did not name the companies nor the suspects.
Sources told the Post on Friday that the action taken involved both Convoy and Lerado, and the trio were involved with some lending activities that may be considered corrupt.
Convoy said on Friday night that executive director Ng Wing-fai would act as interim chairman of the board, and the company’s shares would remain suspended from trading.
Earlier this week, the SFC in its July to September quarter report said it conducted 80 risk-based, on-site inspections of licensed firms to ensure they were compliant to the rules.
It made 2,300 requests for trading and account records from intermediaries, following its surveillance of untoward price and turnover movements, amid the increased stock market rally and turnover.