HONG KONG — Former Hong Kong legislator Chim Pui-chung has been sentenced to two years and 10 months in prison after being found guilty of conspiracy to defraud over a decade-old transaction involving a publicly listed company. His son, Ricky Chim Kim-lun, 55, was sentenced to three years and one month for the same offense.
District Judge Ernest Lin Kam-hung noted that the father and son faced similar liability, with Chim Pui-chung being the “planner” and Ricky Chim the “executor.” The pair used the listed company, Asia Resources Holdings, as a tool to further their personal ambitions, preventing the board from acting in the company’s best interest, and harming minority shareholders in the process.
The judge highlighted that their actions not only impacted investors but also tarnished Hong Kong’s reputation as a major international financial hub. The fraud’s ripple effects, he noted, could discourage future investments in the city.
The court heard that businessman Ma Zhonghong, in association with businesswoman Wong Poe-lai, secretly agreed to pay HK$210 million (US$27 million) to the Chims in exchange for controlling 70-75% of Asia Resources Holdings. This deal, which was not properly disclosed to the stock exchange or other shareholders, was deemed a “back-door listing” by the Independent Commission Against Corruption (ICAC).
Chim Pui-chung, who served as a lawmaker from 2004 to 2012, was a major shareholder in the company, while his son served as its chairman from 2008 to 2014. Despite their public roles, their fraudulent activities have resulted in significant harm to the company and its stakeholders.
In considering the sentence, the judge acknowledged Chim Pui-chung’s age, health issues, and social contributions but emphasized that the court needed to deter such crimes and meet public expectations for justice. Although leniency was not warranted, the court reduced his sentence to reflect the prolonged nature of the case and the investigation’s challenges, which included political unrest and complications due to mainland connections.
Both Chims were also disqualified from serving as company directors for three years. Businesswoman Wong, 68, convicted of money laundering in the same case, was sentenced to two years.
The ICAC has stated that it will continue to work with regulators to combat corruption and protect Hong Kong’s financial markets. Efforts are also underway to recover criminal proceeds related to the case.
