Spoiled milk: Hong Kong court hears mainland Chinese businessman concealed interests in deal to acquire New Zealand dairy farms
PUBLISHED : Tuesday, 27 October, 2015, 12:01am
UPDATED : Tuesday, 27 October, 2015, 12:01am
Chris Lau
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The case centres on a New Zealand dairy farm
A businessman from the mainland allegedly falsely represented his relationship with his business partner and concealed his interests when he met a businesswoman in the city and talked her into acquiring farms in New Zealand for a dairy venture, the High Court heard yesterday.
Chen Keen, also known as Jack Chen, failed to inform Katherine Chan Wai-kay, chairman of China Jin Hui Mining Corporation, that he had worked closely with May Wang when he tried to get Chan and her company to acquire 22 farms in New Zealand in 2009, prosecutor Charlotte Draycott SC alleged.
Chen and Wang conceived the venture to sell milk in China, Draycott said. In 2008, Keen teamed up with Wang, who emigrated to New Zealand from the mainland, in a wine project. "He pretended they were working independently," she said of Chen.
Chen, Wang, and a third defendant, Yee Wenjye, known in court as Eric Yee, pleaded not guilty to two joint charges of conspiring to defraud the corporation as well as the Hong Kong stock exchange between May 7, 2009 and July 19, 2010. Chen denied a further count of dealing in property, valued at over HK$85 million, believed to be proceeds of an indictable offence.
The dairy industry is a key part of New Zealand's economy
Draycott said Chen introduced Wang to Chan as a "successful" businesswoman, while he knew Wang had a history with liquidated companies.
The court heard that Chen was later made a director of Chan's company. Draycott accused him of concealing the actual values of the farms, owned by cash-strapped New Zealand company Carfarms Group, and causing the company to acquire the farms.
The prosecutor described him as being "on the other side of the trade" and not acting in the company's interest.
The prosecutor alleged that, through the deal, the pair would be able to profit from commissions and stock price differences.
The case continues today before Madam Justice Anthea Pang Po-kam.
