A. Senior Public Prosecutor Corruption Case
A very senior pubic prosecutor, at the time holding the position as the Acting Deputy Director of
Public Prosecutor, was found to have excessive assets of HK $16 million believed to have been derived
from corruption: including bank balances of NZ $2.43 million; three lots of land in New Zealand and an
orchard farm. Enquiries revealed how he had laundered his corrupt proceeds through the following
countries:
・ TAIWAN: he bought gold in H.K., then sold it in Taiwan and kept the money in a Taiwanese
Lawyer's account. Transferred the money to N.Z. via a bank account of a HK lawyerD. Cigarette Smuggling Case
・LONDON: he drew money from Taiwan via a Taiwanese lawyer. He transferred the money to an
account in H.K. before transferring it to other overseas accounts.
・ HONG KONG: transferred money to his mother's account in Singapore and his family in N.Z.
Bought gold using money transferred back from Singapore and Taiwan.
・VANUATU PACIFIC: kept money in two trust funds, one of which was for his children.
・NEW ZEALAND: money to his family's bank account; invested in orchard business, buying three
lots of land in Taurauga.
・AUSTRALIA: kept money from H.K. in his sister in-law's account.
He was subsequently convicted of corruption offences and sentenced to eight years imprisonment,
with HK $12 million of his assets forfeited.
B. Illegal Passport & Money Laundering Syndicate
The ICAC smashed an international illegal passport and money laundering syndicate in recent years.
The syndicate members included a Customs Senior Inspector, two Immigration Officers, a Principal
Immigration officer, who was the head of Immigration of an African Country, a bank manager and a
casino operator. This syndicate arranged illegal passports, including diplomatic passports from various
foreign countries for sale to people who wanted to emigrate to the US. The syndicate could also assist in
laundering illegal money. The ICAC succeeded in infiltrating into the syndicate through an ICAC officer
acting undercover. At the critical stage, the ICAC also enlisted the assistance of a Russian speaking
undercover officer from a US law enforcement agency to pose as a member of a Russian organized crime
group. All the key figures were apprehended and subsequently convicted. This is a classic example of
international cooperation, and the mutual assistance that should be developed in undercover operations.
C. Counterfeit Credit Cards (CCC) - HK Joint Operation with Tokyo/Seoul
Counterfeit credit card (CCC) fraud continues to be a lucrative source of revenue for organized crime
groups. In 1992, Hong Kong was responsible for 32% of the world's credit card fraud. Now Hong Kong
is only responsible for 2% of the fraud. This type of fraud is often facilitated by corrupt retail staff who
steal the genuine credit card information from customers and pass them to the syndicate for making
counterfeit cards. In 2000, the ICAC assisted the Tokyo Metropolitan Police Department in eradicating a
crime syndicate from Hong Kong which uttered CCCs in Japan. Tokyo Police, in appreciation of the
ICAC efforts, presented us with a Certificate of Appreciation. In March 2001, information was received
that four members of a CCC syndicate were organizing a trip to Seoul, South Korea, where they intended
to utter CCCs manufactured with data they captured in Hong Kong and elsewhere. A team of ICAC
officers travelled to Korea to assist the Seoul Metropolitan Police in the identification of the suspects. The
criminals were arrested in Seoul. In Hong Kong, simultaneous actions were taken, resulting in the seizure
of credit card data and computer software used in the manufacture of CCCs. The leader of the syndicate
was charged with CCC offences in Hong Kong and sentenced to a term of imprisonment. These two cases
were typical international syndicates with operations stretching through a number of jurisdictions. In
recognition of the ICAC's success in CCCs investigation, an ICAC Chief Investigator was awarded
"Law Enforcement Officer of the Year"by the International Association of Financial Crime Investigators
in America. This is another example of successful international cooperation.
The ICAC carried out a protracted investigation which lasted for three years from 1993 to 1996 into a
cigarette smuggling syndicate. Its members included ex-customs officers, a senior manager of an
international tobacco company, a number of established cigarette traders and senior triad members of Wo
On Lok Triad Society. The investigation revealed bribe payments of over US $4.2M (HK $33M) paid by
the syndicate to the senior manager of a tobacco factory to ensure an unlimited supply of cigarettes to
facilitate smuggling into China. During the course of the investigation, a key member of the syndicate,
who had earlier agreed to assist ICAC in the investigation, was found brutally murdered and dumped in
the harbour in Singapore. His murder was suspected to be carried out by five members of the Wo On Lok
Society. In the end, three members of the syndicate were convicted of bribery, murder or perverting the
course of justice charges. Three persons are still wanted on warrant. This is one of the most serious
organized crime cases investigated by the ICAC.
E. Hong Kong Jockey Club Race Fixing Case
Horse racing is a very popular game in Hong Kong and the total amount of bets placed by punters at
each race meeting is in the tune of tens of million of dollars, one of the highest in the world. Hong Kong
Jockey Club is keen to maintain the integrity of racing. In a joint investigation with the Jockey Club, the
ICAC succeeded in unearthing a case of race fixing involving a number of jockeys who were bribed by an
off-course betting syndicate with a triad background. The total amount of bribes paid to riders for not
letting their mounts run to the best of their ability exceeded US $180,000 (HK $1.4 million) in a single
race. This amount of money is only a drop in the ocean compared to the revenue the syndicate gets in
illegal bookmaking. Seven persons were prosecuted and three jockeys and two civilians were
subsequently found guilty of bribery and gambling offences, and sentenced to substantial terms of
imprisonment. Unfortunately, the ICAC was not able to get to the head of the syndicate simply because
there was a missing link with no one prepared to provide the necessary evidence against the head. This is
the difficulty of investigating organized crime groups.
F. Soccer Match Fixing Case
Betting on soccer match results used to be illegal in Hong Kong, although it is now legalised. The
ICAC investigated a case involving an illegal international soccer bookmaking syndicate. The syndicate
was involved in illegal soccer betting on international matches and also'fixed'the outcome of local
football matches. This was achieved by bribing key players in the team. A corrupt police sergeant was
bribed to assist the illegal operation in Hong Kong. This was a particularly difficult case to investigate.
To begin with, no aggrieved individuals came forward to complain. Secondly, the syndicate's operation is
transnational. Bets accepted in Hong Kong were then placed with a major bookmaker in Malaysia
through a middleman in Singapore, and all financial transactions were conducted through an
'underground'banking system. To add to the complexity of the case, all bets were recorded on a
sophisticated computer programme which was capable of total erasure through a push of a button on the
keyboard. The ICAC carried out a strike operation on the first day of the World Cup Final in 1998 and
managed to break into the premises so swiftly that the operator was so shocked that he was unable to push
the crucial button on time. Nonetheless, it still took a long process of computer forensics to retrieve the
evidence from the computer and have it admissible as evidence in court. This investigation resulted in the
arrest and conviction of eight individuals in Hong Kong. Five footballers were sentenced to terms of
imprisonment ranging between 12 and 22 months, the police sergeant was jailed for four years, and the
head of the syndicate and his'lieutenant'were each sentenced to two years'imprisonment. The need to
upgrade ourselves in information technology is obvious if we want to tackle sophisticated organized
crime.
