DCCC 577/2022 & DCCC 1367/2024 (Consolidated)

[2025] HKDC 1265

IN THE DISTRICT COURT OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

CRIMINAL CASE NO 577 OF 2022 & 1367 OF 2024

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REASONS FOR VERDICT

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1. This is the consolidated trial of DCCC 577/2022 and DCCC 1367/2024.  The defendant (D) is charged with 3 counts of “Evasion of liability by deception” , contrary to section 18B(1)(b) of the Theft Ordinance, Cap.210 (Charge 1 to 3), and 2 counts of “Attempted fraud”, contrary to section 16A of the Theft Ordinance, Cap.210 and sections 159G and 159J of the Crimes Ordinance Cap.200 (Charge 4 to 5).

Prosecution case

2. D was at all material times the sole director of CSK Diamonds (H.K.) Limited, a diamond trader. The victims in the two cases: Legend Bright Trading Limited (Charge 1 to 3) and NYD HK Limited (Charge 4 to 5) were also diamond traders who have each been defrauded of a valuable diamond by the defendant’s scheme of fraud from December 2017 to March 2018.

3. D used a similar modus operandi, after posing as a legitimate diamond merchant, he persuaded the victims to entrust him with their diamonds without payment and then repeatedly and fraudulently induced them to believe that he had or would pay for the diamonds.   Ultimately, the defendant made no payment and the victims reported their losses to the police.

Defence case

4. D had no intention to default the payments.  He honestly believed there would be fund to meet the payments when he entered the contract to buy the diamonds, and when he arranged for the payments of the diamonds.

Background

5. RapNet is an internet communication platform for diamond, gems and jewellery dealers and exclusive to the members only.  CSK Diamonds (H.K.) Limited (CSK), Legend Bright Trading Limited (Legend Bright) and NYD HK Limited (NYD) were registered members of RapNet.

6. D was a self-employed diamond trader.  He conducted his business through CSK.  At all material times, he was the sole director, the sole shareholder and the de facto sole bank account signatory of CSK for all bank accounts of CSK.  D was also one of the directors and shareholders of Express State Limited (Express State).

7. Dina Soloveva (PW1) was the sales manager of Legend Bright and Noam Yosef (PW4) was the owner of NYD.  PW1 and PW4 knew the D before they dealt with him in December 2017. They knew CSK was D’s company and a member of RapNet.

8. Potential buyer needs time to consider whether a diamond is suitable.   It is a general practice in diamond trading between dealers to let the other to keep their diamonds for viewing with bipartite memo, which will specify the “length of the period” and no transfe