Hong Kong court overturns convictions of broker and 3 executives in alleged scheme to defraud Convoy of HK$51 million
- Court of Appeal clears three executives of two charges of conspiracy to defraud and quashes conviction of fourth defendant
- Trading in Convoy’s shares was halted following the scandal and the firm was delisted in 2021
A Hong Kong appellate court has overturned fraud convictions of three former executives of Convoy Financial Service Holdings and a local broker arising from an alleged scheme to defraud HK$51 million (US$6.5 million) in commissions and bonuses, marking the latest setback in a crackdown on white-collar misconduct.
Former Convoy executive director Mak Kwong-yiu, financial controller Christine Chan Lai-yee and manager Wong Shuk-on did not violate market protocols by not disclosing Mak’s stakes at a bond placement subagent hired to help sell the firm’s debts a decade ago, the Court of Appeal ruled on Tuesday.
The court cleared them of two charges of conspiracy to defraud while also quashing the conviction of the fourth defendant, former Gransing Securities general manager Lee Yick-ming, who faced one count of the same offence.
Trading in Convoy’s shares was halted and its management changed after the high-profile probe went public. The firm was delisted in 2021.