HK Businessman Admits to Publishing False Financial Statement

The former chief executive of Moulin Global Eyecare Holdings has admitted in court that he conspired to publishing a false financial statement in a company annual report, reports the South China Morning Post.


Cary Ma Lit-kin pleaded guilty to conspiring with Ma Bo-kee, Tang Yiu-leung and another person to publish in Moulin's 2003 annual report that its turnover was HK$1.24 billion (US$154 million). Ma Bo-kee, founder of the company, and Tang pleaded not guilty to the charge.


According to the Post, the defunct eyewear manufacturer was founded in 1960 and listed in Hong Kong in 1993, but went into provisional liquidation in 2005, with debts of over HK$5 billion (US$644 million). It was liquidated in 2006 and delisted in 2007.


Citing Audrey Campbell-Moffat, the lawyer leading the prosecution, the Post reports that the HK$1.24 billion (US$154 million) in revenue was inflated by HK$337.6 million (US$43 million) in allegedly non-existent sales from fake North American companies.


"The company had two accounting systems, which is very convenient if you are trying to be fraudulent," Campbell-Moffat told the Post.





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