Two shareholders and an assistant contract manager of a company have been convicted of conspiracy to defraud the Judiciary over a $61 million digital audio recording and transcription services contract.

Lui Mei-chi, 42, shareholder-cum-director and contract manager of Megaluck International; Lui Mei-chong, 41, shareholder-cum-director of Megaluck; and Lui Yuen-fai, 37, assistant contract manager of Megaluck, were found guilty by the District Court of one count of conspiracy to defraud. Judge Andrew Chan adjourned sentencing to July 16.

The Judiciary invited tenders for the contract on June 4, 2004. The contractor had to provide digital audio recording and transcription services to the Lands Tribunal, the Coroner's Court, the Labour Tribunal, the Obscene Articles Tribunal and the Magistrates' Courts.

Megaluck and other companies submitted tenders to the Judiciary for the contract. Megaluck was awarded the contract on October 28, 2004, by the Judiciary upon the recommendation of its tender assessment panel.

Subsequent examination revealed that the defendants had conspired together to defraud the Judiciary. They falsely represented to the tender assessment panel that two people were in the employ of Megaluck as a transcription production supervisor and an audio recording supervisor.