A former property agent has been jailed three years by the District Court for conspiracy to pervert the course of justice to frustrate a $14 million property transaction.

Chan Man-kwong, 44, was found guilty of conspiracy to pervert the course of public justice, forgery and two counts of aiding, abetting, counselling or procuring a co-defendant to commit perjury.

Co-defendant Sin Yin-yat, 55, a rooftop hut occupant who pleaded guilty to his role in the scam and later gave evidence in the trial against Chan, was sentenced to one year's jail, suspended for two years.

Deputy Judge Ernest Lin reprimanded Chan for committing the serious offences, which if went unpunished might jeopardise the judicial system.

In February 1998, Charmfar Limited signed a provisional agreement with a vendor to purchase a property in Kowloon City Road, To Kwa Wan, for $14 million. Charmfar was responsible for clearing the illegal rooftop structures.

Chan, then a property agent, acted as a negotiator representing Charmfar to repossess the rooftop from the occupants. Due to the downfall of the property market, Charmfar requested the vendor to postpone the completion date of the transaction, but the request was rejected.

Chan procured Sin to initiate a civil claim of adverse possession against the vendor to frustrate the transaction. Charmfar also filed a separate civil claim against the vendor with the High Court on the grounds of Sin's adverse possession claim.

Between 1998 and 2003, Chan had twice taken Sin to legal firms to swear false affirmations. In support of the claim, Chan and Sin made a false sale and purchase memorandum in respect of the rooftop hut and filed it to the High Court.

In June 2003, despite Chan's repeated requests, Sin wished to discontinue the adverse possession claim proceedings. To appease Sin, Chan, on behalf of Charmfar, offered to pay him $10,000 cash as "travelling expenses", as well as $200,000 if the lawsuit was successful, or $100,000 if otherwise.

The civil litigation continued until August 2004, when the vendor eventually agreed to sell the property at only $8.3 million to Charmfar. As part of the deal, the two civil proceedings discontinued.