A 51-year-old man has been jailed three years and four months for false accounting involving $7.4 million.

The District Court heard the 51-year-old defendant was an ex-managing director of a Hong Kong trading company who entered an agreement with a victim company to provide $8 million in credit facilities with banks for his use in June 1996. In return, the victim company would receive a handling charge of 1% to 2% from the defendant on each advance.

Between November 1996 and March 1997, the defendant made up 45 bogus transactions and used up the credit facilities of $7.4 million to settle the outstanding debts with his suppliers. The defendant was unable to settle the credit facilities and the outstanding debts with his suppliers. He disappeared before his debtors reported the case to Police in April 1997. He was found to have fled to Canada.