Businessman Acquitted Over Alleged Proxy Shareholding Case
HK01 · 1 SOURCESabout 1 hour ago2 MIN
Summary
A businessman accused of handling about RMB402 million in suspected crime proceeds has been acquitted after the court found the prosecution had not proved the alleged corrupt source of the money beyond reasonable doubt. The case centred on whether Chan Kam-shui had held shares on behalf of Wu Yinglu, general manager of state-owned tobacco enterprise Sichuan-Chongqing China Tobacco, but the judge said that claim rested largely on speculation by two brothers who sold the shares. The court also said it could not exclude Chan’s explanation that the funds were his own and that the share transactions were part of his personal investments.
Key Points
- Defendant Chan Kam-shui, 61 when charged, faced an allegation that between February 21, 2020 and November 29, 2021, he dealt with RMB402 million through a Hong Kong HSBC account.
- Chan was represented by senior counsel Wayne Walsh, while the prosecution was led by Department of Justice fiat prosecutor Shi Xiangyuan.
- Judge Lee said Wu Yinglu, general manager of Sichuan-Chongqing China Tobacco, oversaw procurement and was effectively a public official barred from using his position for private gain.
- Brothers Lee Hsiao-ming and Lee Hsiao-hua said they reluctantly agreed to sell a 7% stake because they had frequent business dealings with Wu and did not dare defy him.
- Chan testified the RMB402 million was his own money, denied holding shares for Wu, and said he could explain in detail how he spent proceeds after selling stock.
Why It Matters
The ruling shows that in Hong Kong money-laundering style prosecutions tied to alleged corruption, the court still requires clear proof of the underlying criminal conduct before convicting. It also underlines the evidential difficulty when key events occurred in mainland China and a central witness, in this case Wu, did not testify in court.