The District Court has sentenced a firm director to a year's jail for masterminding the swindling of almost $1.5 million from the Innovation & Technology Commission's Small Entrepreneur Research Assistance Programme.

Shaolin Microsystems Director Chow Tsz-lam, 32, was jailed while his wife Bonny Yan, 30, another Shaolin director, was ordered to perform 200 hours of community service. Chow's cousin Mak Tat-ming, 30, and former Shaolin project manager Chan Yee-lung, 34, were sentenced to 180 hours and 120 hours of community service, while Chance Computer Company proprietor Lam Man-tak, 33, was ordered to perform 100 hours.

Chow and Yan were found guilty of one count of fraud. Mak was convicted of one count of aiding and abetting, counselling and procuring a person to falsify accounts, while Chan was convicted of a similar offence on his own plea. Lam pleaded guilty to one count of conspiracy to falsify accounts.

Shaolin was a company engaged in the development of computer software, while Chance was a supplier of computer equipment. In February 2004 Shaolin submitted an application for funds under the Small Entrepreneur Research Assistance Programme to develop a project. In it Chow and Yan made false representations on the employment of staff and their inflated salaries and the purchase of Chance computer equipment for use in the project.

Upon Chow's request, those staff were required to return the inflated salary amounts to him. To support the false representations Chow and Yan provided false or misleading accounts, documents and information to the commission. By June 2006, Chow and Yan, with intent to defraud, had induced the commission to release $1.47 million to them under the programme.

Facilitating Chow in making claims for funds under the programme, Mak and Chan aided and abetted, counselled and procured Chow to falsify Shaolin accounts on their purported employment and the dates and amounts of their purported salaries. Lam also conspired with Chow to falsify Chance accounts on the dates, amounts or the descriptions of goods supplied to Shaolin.