Machinery traders jailed for fraud
A Hong Kong textile machine trader has been jailed for fraud after issuing invoices which inflated the prices of machinery and using the invoices to obtain more than 27 million euros (34.7 million dollars) in bank loans, dpa reported according to local media.
Henry Chee, 65, owner of Motionning Industrial Company Ltd was jailed for 25 months on 13 counts of conspiracy to defraud and one of bribery, the South China Morning Post reported.
Company manager Raymond Yu, 46, was also convicted on 13 charges of conspiracy to defraud and jailed for 24 months.
Motionning was a dealer for Italian textile machinery maker Promatech SpA and referred 13 machinery buyers in China to Singapore-headquartered bank DBS for loans between May 2004 and June 2007.
But Chee and Yu conspired to inflate the prices of the machines and as a result Motionning received loans by way of letters of credit totalling more than 27 million euros.