Defendants acquitted of laundering millions of stolen funds from global private equity firm

HKSAR v Pang Chi Sau-lan (D1) and Chu Siu-fai (D2) ESCC 34/2023

Jonathan Ah-weng and Benson Tsoi, representing the 1^st and 2^nd Defendants respectively, both secured an acquittal for their clients in a money laundering case, instructed by Haldanes.

The case concerned the laundering of millions of dollars which represented funds stolen from the global private equity firm, Warburg Pincus by the use of unauthorised fraudulent cheques.  Of the HKD30million stolen from the private equity firm, approximately HKD3million were deposited into bank accounts controlled by the defendants and subsequently withdrawn in cash / cash cheques.  The Defence argued that since the monies were deposited by a trusted family member purporting to emanate from a legitimate source, they had no reasonable grounds to believe the monies represented proceeds of an indictable offence when they dealt with the monies.  The Court accepted the defendants’ evidence and accordingly acquitted both defendants.