Hong Kong’s Independent Commission Against Corruption (ICAC) has charged former lawmaker Chim Pui-chung and his son Ricky Chim, an Election Committee member, with conspiracy to defraud the stock exchange and a listed company called Asia Resources.
At Shatin Magistrates’ Court on Friday, the father and son and a woman were accused of “concealing a ‘backdoor listing’ agreement when placing convertible notes to increase the share capital of the listed company and dealing with crime proceeds of HK$42 million,” the ICAC said in a statement. They were released on bail.
Ricky Chim, 52, is a member of the financial services sector on Hong Kong’s powerful Election Committee that will select 40 members of the Legislative Council and will vote for the next chief executive. He is also the honorary consul for Papua New Guinea.
Ricky Chim ran for a seat in the financial functional constituency in the last legislative elections but lost.
His father, Chim Pui-chung, 75, was until 2012 a lawmaker in the financial functional constituency. The third defendant is Wong Poe-lai, 65, an associate of a merchant named in the charge.
Asia Resources
The ICAC alleges that between July 2013 and November 2015, Chim and his son conspired with the merchant to defraud Asia Resources, along with its directors and shareholders.
They allegedly failed to disclose an agreement that the merchant would pay HK$210 million to Chim Pui-chung in order to control 70 to 75 percent of the entire issued share capital of Asia Resources.
They allegedly caused Asia Resources’ board to increase the company’s entire issued share capital by placing new shares and convertible notes. These notes accounted for more than five times the share capital of the company at the time.
The ICAC investigated the trio after a complaint was referred from the Securities and Futures Commission. The Chims face two counts of conspiracy to defraud, while Wong faces one count of money-laundering.
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