Hong Kong’s Independent Commission Against Corruption (ICAC) has charged Li Mau-yam, a director of the garment manufacturing company Mau Wing Industrial Limited, with deceiving Bank of China (Hong Kong) Limited (BOCHK) into issuing Letters of Credit (L/Cs) of over $5.5 million to a supplier on the basis of fraudulent business transactions, and laundering the crime proceeds.
Mau Wing purchased raw materials from suppliers and used L/Cs issued by banks to settle transaction payments. Mau-yam was also the only proprietor of another company which owned Great Pacific Clothing Company Limited.
The ICAC suspects that in 2018, Mau-yam conspired with an employee of Mau Wing and a supplier to defraud BOCHK. The co-conspirators applied to the bank to get three L/Cs in favour of the supplier by supplying false documentation. This led the BOCHK to make 3 payments of over $5.5 million to the supplier. Moreover, the defendant held these funds in a bank account of Great Pacific Clothing, with knowledge that part or whole of the amount came from illegal activities. The funds were subsequently transferred to Mau Wing bank accounts.
Source: Independent Commission Against Corruption, Hong Kong