Asset management firm owner guilty of laundering $64 million as revealed in ICAC graft probe

An asset management company owner was convicted today (June 23) at the District Court of laundering approximately $64 million in crime proceeds through multiple companies and individuals, as revealed in an ICAC investigation stemmed from a corruption complaint.

Xiao Rui, 37, an owner of Augustine Holdings Limited (AHL), was found guilty after trial of four counts of dealing with property known or believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance (commonly known as money laundering). He was also convicted of one count of using copies of false instruments, contrary to Section 74 of the Crimes Ordinance.

In convicting the defendant, Deputy Judge Bernard Chung remarked that the offences committed by the defendant were serious in nature. While the case was adjourned to July 23 for mitigation and sentencing, the defendant was remanded in the custody of the Correctional Services Department. The ICAC has applied to the court today for confiscation of the criminal proceeds involved in this case; the related hearing will be scheduled for a date to be fixed.

The court heard that at the material time, the defendant and other individuals jointly set up AHL, an asset management company, along with three subsidiaries. Between March 2014 and November 2023, a total of 38 transactions amounting to over $64 million were deposited into the defendant’s personal bank accounts via at least 12 companies and 12 individuals, which had no business dealings with AHL and its subsidiaries, and were not clients of the companies.

Additionally, in 2013, the defendant submitted copies of a false certificate of deposits and a false passbook to the Immigration Department for asset declaration in support of a Hong Kong residency application under the then Capital Investment Entrant Scheme.

The prosecution was today represented by Senior Public Prosecutor Noelle Aileen Chit, assisted by ICAC officer Jeff Ng.

Reference URL: https://www.icac.org.hk/en/p/press/index_id_4973.html

Source industry: Banking and Finance