A former general manager of a headware company has been sentenced to two years in prison for deceiving millions of dollars in goods payments from the company.

Thomas Henry Spedding, 56, formerly employed by Kangol Headwear (Panyu) Limited, today pleaded guilty in District Court to two counts of fraud.

Deputy Judge Anthony Kwok said a jail term was necessary in view of the defendant's premeditated fraud - lasting over four years - and a serious breach of trust.

As general manager of Kangol, a wholly owned subsidiary of Bollman (Hong Kong) Limited, one of the defendant's duties was to authorise the purchase of raw materials from suppliers, including Chuangxing Leather Trading Company.

In July 2003, Spedding, his wife and his assistant at Kangol set up Silken Himan International Traders Company Limited, a company registered in the British Virgin Islands.

In June 2006, Hong Kong-listed Mainland Headwear Holdings Limited acquired Bollman and Kangol, and Spedding continued in his role as Kangol's general manager. He told his assistant to place yarn orders on behalf of Silken Himan with Chuangxing at an average price of $80 a kilogram. Silken Himan then resold the yan to Kangol at $120 a kilogram.