Police CCB arrest two men for false accounting

Police Commercial Crime Bureau (CCB) today (September 28) arrested two men for false accounting involving fictitious transactions totalling $380 million.

On July 24 this year, a public listed company in Hong Kong self-liquidated after discovering a fall short of about RMB 840 million in the bank balance of its Mainland subsidiaries.

The appointed provisional liquidator later discovered some accounting irregularies and reports were made to the Police CCB on August 4 and September 14 this year.

After extensive investigations, a 49-year-old man was arrested on August 19 and later charged with one count of false accounting regarding a fictitious sale transaction of HK$19.8 million worth of goods in a local subsidiary of the subject company.

Further enquiries by the CCB led to the arrest of two more men today for false accounting. They were suspected to be involved in some 100 fictitious transactions, totalling HK$380 million with another local subsidiary of the subject company.

The duo, aged 34 and 36, are still being detained by the CCB for enquiries.


Police Report No. 6
Issued by PPRB

End/Thursday, September 28, 2006