Family 'laundered HK$983m cash'

2013-07-17

Five relatives deny accusation they were involved in a complex web of transactions into and out of 28 different bank accounts over five years

A family of five used 28 bank accounts to launder HK$983 million between 2005 and 2009, a court heard yesterday.

Prosecutor Neil Mitchell told the District Court that apart from the money flowing into and out of their accounts, various sums were seized from their properties, including a bag hanging on a bedroom door.

Tsoi Chit-tsang, his wife Shi Wenni, his mother Ngai Lan-fa and his sister and brother-in-law Tsoi Suet-ching and Wong On-hung, denied seven charges of knowingly dealing with ill-gotten gains.

The two Tsois and Wong are merchants while Ngai and Shi are housewives.

Mitchell said that the five accused laundered the money, largely Hong Kong dollars with some US dollars and yuan, through 28 bank accounts held either in their names or those of companies under their control.

The accounts were opened with seven banks, including Bank of China, Nanyang Commercial Bank and Hang Seng Bank.

"In respect of all bank accounts there were large cash transactions, large deposits and virtually all those deposits were withdrawn, large amounts flowing between the accounts of the defendants and the companies which created complex layers of financial transactions," Mitchell said. "Large amounts transferred either in or out of the accounts using remittance agents and deposits, sometimes in a structured form, far exceeded reported income or turnover."

The court also heard that the deposits were not commensurate with the defendants' reported income in the period of the offences, and many were in a form which meant the origin could not be traced.

For example, the Inland Revenue records reveal that Tsoi Chit-tsang did not file any tax returns or make any payments for tax up until December 3, 2008.

A return filed by his employer shows that his income from April 2008 to March 2009 was HK$360,000.

After the arrest of Tsoi Suet-ching, Wong and Ngai at their Whampoa Garden home, police officers found HK$1,379,880 and 83,800 yuan in a safe in the master bedroom, and HK$250,000 and 10,000 yuan in a bag, Mitchell told the court.

Under caution, the court heard, Tsoi Suet-ching told police: "I just helped my younger brother Tsoi Chit-tsang in the operations of the company. My husband was responsible for the financial matters."

When Ngai was arrested for money laundering, the court heard, she said: "I believe it has something to do with my son Tsoi Chit-tsang; however, I don't live with him and so I am not sure."

The trial continues today before Judge Kevin Browne.

Source: http://www.scmp.com/news/hong-kong/article/1284214/family-laundered-hk983-m-cash