The former chairman of GAOYU FINANCE (08221.HK)  -0.100 (-7.874%)   (previous company name: PF Group), Bruce Lee, is accused of conspiring with a car dealer to exaggerate the price and first registration tax of a sedan for the Company by a total of approx. $3.1 million during the period from 2020 to 2021.

The trial of the case commenced on Wednesday (5th) at the West Kowloon Magistrates' Courts. Lee denied the charges of conspiracy to defraud and fraud.

Fok Yuk Tong, the Company's substantial shareholder, said that, at the end of 2020, the defendant proposed the expansion of the Company into the car loan business, and suggested purchasing a Rolls-Royce car from the UK for approx. $3.8 million.

After the vehicle arrived in Hong Kong, the defendant also requested an additional payment of over $2.3 million for vehicle license tax, totaling approx. $6.1 million paid by Fok.

However, it was later discovered that the total cost of the vehicle, including taxes, amounted to only approx. $3 million. Also, the vehicle was not registered in the Company's name but was held by a BVI company with no affiliation to PF Group.

Hence, Fok reported the matter to the Independent Commission Against Corruptio (ICAC).
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