Convoy Global fails in bid to freeze former director’s assets as financial scandal lingers
- High Court rejects Convoy’s bid with costs, saying no evidence to conclude there is risk of asset dissipation
Convoy Global Holdings has encountered a setback in its long-running legal fight with former director Roy Cho Kawi-chee after the High Court rejected its attempt to freeze HK$654 million (US$84 million) of his assets.
The financial services group earlier sought a court order in Hong Kong and the British Virgin Islands to bar Cho from selling his assets in its attempt to recoup HK$715 million losses it suffered in five deals in 2016 and 2017. The deals became one of the biggest financial scandals in Hong Kong’s corporate history.
Mr Justice Jonathan Harris of the Court of First Instance dismissed the application by its unit Convoy Collateral Limited (CCL) and ordered the firm to pay Cho’s legal costs, according to his written judgment on Wednesday. Convoy had earlier lost its case in BVI and is appealing the decision.
“This case is unusual,” Mr Justice Harris said in his judgment following the hearing in October last year. “Although I understand CCL’s concern and scepticism I am unable to find among CCL’s evidence sufficient to allow me properly to conclude that there is a concrete risk of dissipation of assets.”
Convoy Global filed claims against Cho and other 12 other defendants – nine people and three companies – over the transactions that led to its losses, according to its writ in February 2018.