Police have extradited and charged the former owner of a Hong Kong leather company who fled to Canada in 1998 with the proceeds from the sale of products owned by a British company that he had had on consignment.

Police charged the 53-year-old man with theft early this morning after he was flown back to Hong Kong last night.

He is alleged to have sold the stock on consignment - with a retail value of about  $4.22 million - to a leather merchant for $932,000 on March 25, 1998. On April 20, 1998, he fled with the money.

The British company made a report to Police on April 23, 1998.

After investigations, the Department of Justice asked the Royal Canadian Mounted Police to arrest him, which they did at his home in Vancouver on May 10, 2001.

He will appear in Eastern Magistrates' Court today.