Former lawmaker Chim Pui-chung was on Monday sentenced to two years and 10 months in prison for conspiracy to defraud, over HK$42 million in transactions linked to a listed company.
The District Court earlier convicted Chim, who was the largest shareholder of Asia Resources, and his son Ricky, who was the chairman, of conspiring with mainland businessman Ma Zhonghong to defraud the company, its board and shareholders between July 2013 and November 2015.
The case involved the issuance of convertible notes to increase the company's share capital while concealing a secret "shell company" agreement. Ma had agreed to pay the ex-lawmaker HK$210 million for 70 to 75 percent of Asia Resources' issued shares.
The younger Chim was jailed for three years and one month.
Wong Poe-lai, a businesswoman and an associate of Ma, was convicted of money laundering in connection with the case and was jailed for two years.
Passing sentence, judge Ernest Lin said Chim Pui-chung and his son not only harmed the interests of individual investors, but also hurt the SAR’s reputation as an international finance centre and shook investor confidence.
Lin said the starting point for the the former legislator's prison term was set at four years, and in reducing this to 34 months he had taken into account the defendant's old age and previous contributions to society, but also the damage he had caused.