Jack
Chen and May Wang, who hit the headlines with attempts to buy into the New
Zealand dairy industry are facing criminal charges in Hong Kong of conspiracy
to defraud. New Zealand assets they are
believed to have an interest in have been frozen by court order.
It is alleged Chen
Keen (also known as Jack Chen) and May Hao (also known as May Wang) conspired
to defraud the Hong Kong Stock exchange and China Jin Hui Mining
Corporation/Natural Dairy (NZ) Holdings when attempting to sell 22 dairy farms
owned by the Crafar group at an inflated price and without disclosing their
interest.
The two are alleged to
have created false accounting statements overstating farm profits by some fifty
million dollars. Jack Chen is alleged to
have received $23.5 million and May Wang $201.6 million. Funds allegedly received dishonestly from
Natural Dairy (NZ) are said to have been used to buy four farms along with
residential property in Auckland.
In October 2011, Hong
Kong authorities placed a restraining order on their property worldwide. To be effective, such an order needs to be
registered in each country where assets are situated. In New Zealand, the Mutual Assistance in
Criminal Matters Act and the Criminal Proceeds (Recovery) Act set out a
mechanism for registration of foreign restraining and forfeiture orders.
In the High Court,
Justice Courtney approved registration of the Hong Kong order. The biggest asset frozen is a 142 hectare
farm on the Napier - Te Matai roads valued at just over four million dollars. The Official Assignee takes control of the
property. The court-ordered freeze does
not affect the rights of secured creditors to seize mortgaged assets.
Commissioner
of Police v. Keen & ors – High Court (2.09.13)
13.028