Thomas Kwok, the billionaire co-chairman of Sun Hung Kai Properties Ltd. (16), was convicted of conspiring with Hong Kong’s former No. 2 official to commit misconduct in public office. His brother, Raymond Kwok, was cleared of all charges.
Thomas Kwok was found guilty of conspiring to pay HK$8.5 million ($1.1 million) to Rafael Hui in exchange for favorable treatment for Sun Hung Kai, the world’s second-most valuable real estate company. Hui was convicted on five charges, including conspiracy to accept HK$11.18 million in bribes when he was Hong Kong chief secretary.
The nine-member jury had been deliberating for five days in Hong Kong’s highest-profile graft trial. Thomas Kwok was acquitted of two charges. Two others were also convicted for their role in the conspiracy.
The case focused on whether secret payments, loans and rent-free accommodation of more than HK$35 million to Hui from 2000 to 2009 amounted to bribes and
misconduct in public office. Prosecutors argued the case unveiled collusion and abuse of office while the men’s lawyers said Hui had an unwritten consultancy contract which had to be concealed due to disputes within the Kwok family.
The arrest of Thomas and Raymond Kwok on March 29, 2012, sparked the company’s biggest share plunge in 14 years. The stock tumbled 13 percent the next day to HK$96.50, erasing $4.9 billion in market value. The five men were charged in July that year. The shares rose as much as 3 percent today before being suspended.
Both brothers have a net worth of just over $10 billion each, ranking them among Asia’s top 25 richest, according to the Bloomberg Billionaires Index.
The case is Hong Kong Special Administrative Region v Rafael Hui, Thomas Kwok, Raymond Kwok, Thomas Chan and Francis Kwan, HCCC98/2013, in Hong Kong’s High Court.
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