Fraud trial starts for Mou Mou Club exec

[GroundIIControl]

Fraud trial starts for Mou Mou Club exec

Former CEO accused of getting restaurant owner to hire design company he co-owned

PUBLISHED : Friday, 23 January, 2015, 11:54pm
UPDATED : Friday, 23 January, 2015, 11:54pm

Chris Lau [email protected]

Liu Kit-man has denied one count of fraud and one of using a false document, for inducing his former company to hire the company he co-owned. Photo: Paul Yeung

A former chief executive of the company that owns Japanese hot pot chain Mou Mou Club and noodle restaurant Xia Mian Guan did not tell his managing director that he co-owned a design agency he had the company hire, the District Court heard on Friday, as testimony began in the fraud trial of the ex-CEO.

When defendant Liu Kit-man was the chief executive officer of Kabushikigaisha from late 2008 to early 2012, director Simon Wong Kit-lung was not told Liu was a shareholder of Hong Kong Infix Design, Wong told the court.

Liu held a 30 per cent stake in the Hong Kong-based design agency, while Japanese designer Norio Ogawa owned the rest, the court heard in the prosecution's opening.

Wong said Ogawa, to whom Liu introduced him, also represented Shanghai Infix Design, a Shanghai-based Japanese Company Kabushikigaisha hired to design its restaurants.

But Hong Kong Infix signed off on 13 contracts and an additional job, supposedly for Shanghai Infix, resulting in a payment of HK$1,709,000 to the Hong Kong agency, the court heard.

Liu has denied one count of fraud and one of using a false document, for inducing his former company to hire the company he co-owned. He has not yet told his side to the court.

Questioned by prosecutor Neil Mitchell yesterday, Wong said he had never heard Liu talk about his role in Hong Kong Infix. When shown contracts detailing jobs done by the Shanghai agency, the managing director said he had never noticed they were not signed off on by the Shanghai agency at the time.

Wong owns 50 per cent of Draconis Investment, which has a 10 per cent stake in Kabushikigaisha. The company's biggest shareholder is Lucky House Group, which owns 70 per cent.

Board member Grace Ko Sau-chee holds another 10 per cent, while Liu holds the final 10 per cent via All Global Development.

The trial is to continue on Monday before Judge Timothy Casewell. Liu faces up to seven years in jail if convicted.