The District Court has jailed three men aged 35 to 55 for conspiring to defraud $32-million worth of client assets.

Law Siu-kong, the sole proprietor of the now defunct Lawsons Securities Company, accountant Wu Chun-kit and clerk Choi Tsz-ming were sentenced to 55 months', 52 months' and 35 months' jail.

A Securities & Futures Commission audit check on the firm in May 2002 found $32 million in shares of public-listed companies entrusted by its clients missing.

Police found that in 2001 and 2002 the defendants illegally sold clients' shares entrusted in their company through a number of dummy securities accounts. The sale proceeds were deposited into the company account with false accounting records created to defraud the clients.

The defendants were arrested and charged in May and June last year, and were convicted of conspiracy to defraud and procuring entry in certain records by deception today.