HKSAR v. LAU WAI KEUNG

DCCC143/2011

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

CRIMINAL CASE NO. 143 OF 2011

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Reasons for Sentence

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1.  Defendant, you have pleaded guilty to three charges of dealing with property known or reasonably believed to represent proceeds of an indictable offence contrary to section 25(1) and (3) of the Organised and Serious Crimes Ordinance Cap.455 Laws of Hong Kong.

2.  The three offences relate to the opening up by yourself of three separate bank accounts at the Hang Seng Bank,  that is Charge 1; the Nanyang Commercial Bank, Charge 2; and HSBC, Charge 3 between 12 May 2009 and 19 February 2010. 

3.  The Summary of Facts which you have agreed indicate that between 12 May 2009 and 27 November 2009 a total of $1,585,802.27 was deposited into the Hang Seng Bank by way of cash deposits and transfers and by 27 November it had all been withdrawn, mainly by way of ATM withdrawals.  Similarly, with the regard to the account at the Nanyang Commercial Bank between 20 May 2009 and 19 February 2010 a total of $498,880 was deposited into this account and it had all been withdrawn again, mainly by way of ATM withdrawals by 19 February 2010. 

4.  As far as the HSBC account is concerned, between 23 September 2009 and 2 February 2010 a total sum of $424,070 was deposited into the account and by 2 February 2010 only $1,570 was left in the account. 

5.  By way of mitigation I am told that you were under significant financial pressure due to the economic climate at the time, and in March 2009 you approached loan sharks for a loan of $10,000.  You were given $9,000 cash and had to pay $1,000 every 10 days as interest.  In May, after having repaid $7,000, you were unable to handle the heavy burden of the repayment due to the crippling interest rates, and as a result I am told you were approached by Mr Wong of the loan sharks who requested you to open up two bank accounts, which you did, at the Hang Seng Bank and Nanyang Commercial Bank and in return the interest rates would be waived. 

6.  In September 2009 when you thought that there was no longer any need to continue paying the repayments you were again contacted by Wong who requested you to open up the third account and that if you did not do so the requirements of paying the interest rate would be reactivated.  As a result you opened up the third account. 

7.  Whilst you were fully aware it was improper to open up bank accounts for loan sharks, I am told your involvement was minimal. You did not yourself make any of these withdrawals as you had given the account details together with the ATM cards and passwords to Wong. 

8.  You are 41 years of age and are no stranger to crime.  You have a number of previous convictions dating back to 1987.  You have a triad background and although you have not been convicted of any similar offences to the present offences in the past you were sentenced to a term of imprisonment in 2005 in respect of a number of offences of procuring the making of an entry in certain records of the bank by deception. 

9.  There are no sentencing guidelines for offences of this nature, the reason being that circumstances can vary so much from case to case.  However, offences of this nature are serious as they involve an attempt to legitimise the proceeds of crime.  Whilst I accept that you yourself were not involved in any criminal enterprise giving rise to the moneys going in and out of these accounts, you did assist these loan sharks by opening up the accounts when you were fully aware that they were not to be used for any legitimate purpose. 

10.  In relation to each of these offences I adopt a starting point of 3 years’ imprisonment.  I will discount this by one-third to take account of your plea of guilty coming to 2 years’ imprisonment in relation to each charge.  Due to the question of totality of sentence, I order these sentences to run concurrently with each other arriving at a total sentence of 2 years’ imprisonment.