C.Y. Foundation's ex-chairman jailed over Wan Chai property fraud
C.Y. Foundation ex-chairman hid ownership of Wan Chai property he persuaded it to buy
A former chairman of C.Y. Foundation Group was jailed for five months yesterday for defrauding the listed company in a HK$53 million property deal.
Theodore Cheng Chee-tock, 63, nephew of former National People's Congress vice-chairman Cheng Siwei, was also banned from serving as a listed-company director for three years.
Co-defendant Philip Yu, 41, Cheng's former consultant, who was found guilty of defrauding the company as well as money laundering, was jailed for seven months.
Judge Stanley Chan Kwong-chi said the city had to uphold investors' confidence and protect the interests of minority shareholders.
"It is important that fair play is upheld in the commercial community," Chan said.
The District Court heard earlier that Cheng had deceived the company's board of directors and shareholders by concealing his ownership of a Wan Chai property and getting the company to buy it for HK$53.5 million in 2007. He had bought it for HK$42.2 million in 2006 through his listed company in Australia.
Cheng breached listing rules by concealing his interest in the property.
