Former Hong Kong Fintech Executive Jailed 6 1/2 Years for HK$19 Million Theft

A former senior executive at a Hong Kong fintech firm has been sentenced to six and a half years in prison.

He stole more than HK$19 million from his employer and laundered part of the proceeds to fund gambling and a lavish lifestyle.

According to the South China Morning Post, the High Court on Wednesday (February 11) jailed Shum Lok-man, 38, after he pleaded guilty to three counts of theft and two counts of money laundering.

He admitted to gambling away about 99% of the stolen funds.

Shum worked as an assistant vice-president at Eddid Securities and Futures. He controlled the company’s finances, including its chequebook and e-banking accounts, while earning HK$45,000 a month.

Between April 2021 and June 2023, he took the funds by diverting client withdrawals and cashing blank cheques pre-signed by directors during the Covid-19 pandemic.

He channelled the money through multiple accounts, transferring HK$3.91 million to two companies controlled by an auditor, who took a commission of up to 15% to facilitate the scheme.

After his arrest in August 2023, Shum told police he used gambling winnings from the stolen funds to buy four luxury watches and a Mercedes-Benz EQA 250 electric car.

The court heard he completed theology and food hygiene courses while in custody.

In sentencing, Justice Anthony Kwok Kai-on described the offences as sophisticated and sustained. He said Shum’s conduct represented a serious breach of trust and undermined the integrity expected of those in financial control roles.

The court imposed sentences of 16 to 56 months for each charge, some to run consecutively, bringing the total to six and a half years. The court also ordered Shum to surrender the four watches to his former employer as partial compensation.

Featured image credit: Edited by Fintech News Hong Kong, based on image by rawpixel.com

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