Kwun Tong Magistracy has sentenced a trading firm's two former merchandisers to a year's jail for accepting more than $500,000 in illegal rebates from manufacturers of souvenirs and gifts.

Lau Chung-him, 25, and Choi Hoi-kam, 24, both former merchandisers of China Bestsellers International pleaded guilty today to five counts of conspiracy to accept an advantage. The prosecution offered no evidence to five other conspiracy offences.

Co-defendant Cheng Yuk-cheung, 46, proprietor of Sunrise Industrial Company was jailed for six months after admitting offering illegal rebates totalling over $127,600 to Lau.

In September 2006 a Mainland manufacturer proposed to offer rebates to Lau and Choi for placing purchase orders with it. The pair agreed and accepted $225,800 in rebates from the manufacturer and $152,000-worth from other Mainland manufacturers from September 2006 to last April.

In December 2006 Lau placed a purchase order with Sunrise and asked Cheng to inflate the price of the order. He agreed. After receiving China Bestsellers International's full payment Cheng gave Lau the $127,600 inflated amount. Lau and Choi shared the rebate equally.