A solicitor and four other people have been jailed for up to six years for their roles in swindling $5.93 million with bogus standby letters of credit.

Chan Nai-keung, 55, and Chiang Pak-yeung, 51, of Paul Chan & Co Solicitors, were jailed six years and ordered to pay the victim companies compensation totalling over $4.7 million.

Leading Group Investment Enterprise proprietor Lee Kwok-on, 38, was sentenced to four years and three months. Albert Lee, 47, jobless, was sentenced to two years 11 months, while Collins Lee, 49, International Finance Trading Company proprietor, was sentenced to two years five weeks.

Deputy Judge Symon Wong said the serious offences committed by Chan and Chiang were a breach of trust of the highest degree, which might undermine the reputation of Hong Kong as an international finance centre. He also reprimanded Chan, Chiang and Lee Kwok-on for showing no remorse.

The five were earlier convicted of six counts of conspiracy to defraud and four of dealing with properties representing proceeds of indictable offences, which took place between January 2004 and January last year.

Chan, Chiang, Lee Tai-sang and Lee Chi-wing falsely represented to two Mainland companies that the International Finance Trading Company had agreed to arrange standby L/Cs for their use. As a result, the Mainland companies were misled into depositing with Paul Chan & Co two sums of stake monies, $468,000 and $2,652,000, which were subsequently pocketed by the defendants.

Chan, Chiang, Lee Tai-sang and Lee Kwok-on also conspired with others to defraud another Mainland company of stake money totalling $1.17 million with a copy of a false standby L/C and a copy of a false cashier order involving Leading Group.

The court heard with a copy of a false standby L/C involving Wah Shun Investment Enterprise, Chan, Chiang and Lee Tai-sang conspired to defraud a fourth Mainland company of stake money totalling $1.17 million.

Chan, Chiang and Lee Chi-wing also conspired to defraud a fifth Mainland company of stake money totalling $471,698, with a loan agreement involving International Finance.

Lee Chi-wing dealt with sums of $468,000, $2,652,000 and $471,698, knowing that the sums represented proceeds of an indictable offence; while Lee Kwok-on dealt with $1.17 million in crime proceeds.

Four other co-defendants, who were also charged in connection with the case, were Zhong Pei-hong, 44, Wah Shun proprietor; Lam Chun, 36, a merchant; Andy Chan, 31, worker; and Lui Chung-yee, 47, jobless.

Zhong, Lam and Andy Chan had pleaded guilty to their roles in the case. Zhong and Lam each received a 12-month jail term, while Andy Chan was jailed for eight months. Lui has absconded whilst on court bail, and a warrant for his arrest has been issued.