A senior executive of an asset management company has been sentenced to six years and nine months in prison following his conviction for money laundering involving more than HK$64 million in criminal proceeds. The case, investigated by Hong Kong's anti-corruption agency, involved a complex cross-border scheme utilizing multiple companies and individuals.
Xiao Rui, a 37-year-old responsible person at Augustine Holdings Limited (AHL), was found guilty of four counts of dealing with property known or believed to represent proceeds of an indictable offence, commonly known as money laundering, in violation of the Organized and Serious Crimes Ordinance. He was also convicted on one count of using a copy of a false instrument.
During sentencing, the judge condemned the defendant's repeated participation in substantial cross-border money laundering activities, noting the large sums, prolonged duration, and frequency of the offences had damaged Hong Kong's reputation. The court deemed the case extremely serious, particularly as the defendant also used false documents in an application to reside in Hong Kong, constituting serious fraud. A deterrent sentence was deemed necessary.
The anti-corruption commission has applied to the court for a confiscation order regarding the crime proceeds involved in this case, with a related hearing scheduled for October 7.
Details revealed that during the offence period, the defendant co-founded asset management firm AHL and three subsidiary companies. Between March 2014 and November 2023, he arranged for 38 deposits totaling over HK$64 million to be transferred into his personal bank accounts through at least 12 companies and 12 individuals. These entities had no business dealings with AHL or its subsidiaries, and the individuals were not clients.
Furthermore, in 2013, the defendant used copies of a false bank deposit certificate and a false bank passbook to declare assets to the Immigration Department, applying for residency in Hong Kong under the then Capital Investment Entrant Scheme.