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

[2025] HKDC 1674

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 SENTENCE

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1. This is the consolidated trial of DCCC 577/2022 and DCCC 1367/2024. The defendant has been convicted after trial on 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).

Facts

2. 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.

3. D was a self-employed diamond trader. He conducted his business through CSK. At all material times, D was the sole director, sole shareholder and 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). The victims in the two cases was Legend Bright (Charge 1 to 3) and NYD (Charge 4 to 5).

4. 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 transfer of ownership until full payment made, and depending on the circumstances with or without collateral.

5. D was not able to meet all his financial obligations since January 2018. Not knowing the D’s then financial situation, the victims entrusted/ continued to entrust their diamonds to D in their normal course of business. D later offered to buy the diamonds and parties agreed on the prices. Thereafter, D used a similar modus operandi, repeatedly and fraudulently induced the victims to believe that he had or would pay for the diamonds.

6. Legend Bright handed over the diamond (Diamond A) to D on 4 December 2017. D later indicated he had a buyer for the diamond, parties negotiated on the price and initially agreed at USD 510,000 on 26 January 2018, an invoice was issued payment be made “on or before 6 February 2018”. D pretended he had fund to effect an on-line transfer to meet the payment of the diamond by screenshot of an on-line transfer, successfully evaded liability by deception (Charge 1).

7. The price of Diamond A later increased to US$ 520,126