Former Standard Chartered bankers sentenced for $28.4m fraud

The two pleaded guilty to a combined four counts of conspiracy to defraud.

Two former Standard Chartered Bank relationship managers were sentenced to three years' imprisonment each at the District Court, after defrauding Japanese investors of over $28.4m (JPY400m).

According to the Independent Commission Against Corruption, Woo Man-ho, 38, and Chan Tak-ching, 39, pleaded guilty to a combined four counts of conspiracy to defraud.

Judge Clement Lee Hing-nin cited the scheme's 18-month span, its numerous victims, and the $28m-plus in losses in ordering deterrent sentences, noting the fraud was premeditated and breached investor trust in the bank.

Between January 2015 and September 2016, Woo and Chan conspired with two more relationship managers, a self-employed financial consultant, and four foreign nationals to fabricate proof-of-fund letters and corporate refund promissory notes.

The forged documents, signed by the two, falsely represented Standard Chartered as guarantor for ADF Capital Limited, claiming the bank would pay approximately $450m and that the foreign nationals held over $37b in assets for African investment projects.

Standard Chartered confirmed it never held such assets.

Two other relationship managers, Leung Ho-yin, 40, and financial consultant Law Man-fai, 52, pleaded guilty to three counts of conspiracy to defraud.

ADF Capital manager Catherine Kum Kit-ching, 58, was convicted after trial of one count of money laundering, tied to about $55m in proceeds funnelled through a bank account.

All three remain remanded for sentencing on 30 September.

($1=JPY20.18)