The Hong Kong government is tracking the assets of a corrupt cop one of the notorious 'Five Dragons' who had fled to Vancouver. Almost three decades later, the question now is... Should a wealthy B.C. family pay for the sins of their father
By Asian Pacific News Service
The Hong Kong government, given the green light by its courts to go after the millions taken by a group of corrupt policemen, are tracking the assets of their families in the former British colony, U.S. and Canada.
Dubbed the "millionaire cops," the ex-Royal Hong Kong police officers, their wives, concubines and children have invested tens of millions of dollars in businesses and real estate in Canada, mostly in B.C. and Ontario, according to secret Canadian police study obtained by The Asian Pacific Post.
They had amassed fortunes in bribes and used a loose Canadian immigration system to set up new homes, businesses and underworld connections in Canada since the seventies.
Among them was ex-police seargent Hon Kwing Shum, known as one of the 'Five Dragons'.
The five dragons were reputedly the most corrupt and the wealthiest of the fugitive policemen.
They had geographical control of police jurisdictions in Hong Kong and collected graft while allowing the Chinese gangsters to conduct their criminal activities.
Now almost three decades later and after many of the key suspects have died, the Hong Kong government wants to seize the estates of the corrupt policemen.
Recently, the Hong Kong justice secretary was given the go-ahead by a High Court judge to reclaim the multi-million dollar estate of Hon Kwing Shum. Hong Kong's deputy High Court Judge Aarif Barma dismissed arguments from the man's family that the government had taken too long to bring the case to court, according to the statute of limitations.
Hon Kwing-shum, alias Hon Shum or Hon Sum, served in the Royal Hong Kong Police from September 1940 until he retired in August 1971.
Upon retirement he and his beneficiaries owned millions of dollars worth of assets. This included over 40 properties, various bank accounts, investments and two Mercedes Benz cars.
Hon, according to court records, accumulated his fortune despite earning a total of just HK$193,852 (C$34,300) during his 31 years with the force.
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Hong Kong justice secretary, Elsie Leung |
He added that the justice secretary was seeking the assets, not the cash itself, because they were effectively being held in trust by Hon.
In addition to Hon, the assets of another of the five dragons is being sought in California. Police sources in Vancouver told The Asian Pacific Post that their investigations into the flight of the corrupt Hong Kong cops began in the late seventies and has been kept updated.
They believe that up to 44 former Royal Hong Kong cops, followed the lead of the five dragons to escape a corruption crackdown and establish themselves in Canada with their ill-gotten gains.
Covert studies by Asian Organized Crime investigators with the help of Immigration Canada officials found that 30 of the cops had directly invested in at least 13 B.C. companies and purchased about 50 pieces of property in the Vancouver area.
These included large homes in Vancouver, commercial buildings, a shopping mall and vacant acreages. Others invested in restaurants and bought shares in a private hospital.
The study also found that four of them had built a two-tower, 600-room hotel in Toronto valued at more than $20 million.
The richest eleven of the cops were estimated to have a combined asset base both directly and indirectly of some C$80 million.
"It is not exactly understood how much influence or power these former police officials possess regarding Chinese criminal activities in North America but, because of past ties, former influence, possible triad connections and money illegally obtained, they definitely could influence Chinese criminal patterns as we know them today," the study said.
The exodus of Hong Kong cops to Canada can be tracked back to the mid-'70s when the newly formed Hong Kong agency called Independent Commission Against Corruption (ICAC) began enforcing prevention-of-bribery laws.
In the ensuing investigations, ICAC brought 260 police officers to court after finding 18 criminal syndicates operating in the police force.
It was around this time that Hon Kwing Shum, despite his criminal connections, became a landed immigrant in Vancouver.
British Columbia court records show that Hon Kwing Shum was arrested by the RCMP on June 22, 1976 at his house on 515 West 54 Ave in Vancouver on an extradition warrant issued by the Hong Kong ICAC.
At that time he was said to have in his control HK$2,343,624 (C$468,000), a sum disproportionate to his salary as a Detective Staff Seargent of the Royal Hong Kong Police Department.
The next day, Hon appeared in a Vancouver provincial court where Canadian Justice Department lawyer P.W. Halprin said Hon is a landed immigrant who arrived in Vancouver several months ago. He said police seized about C$6,000 from him when he was arrested. After spending five days in jail, Hon was released on bail after four people put up C$250,000 in property for the bail.
The bail was raised by family and friends of Hon and covered the titles of six houses.
The bail was raised by his:
i) Concubine - Kan Suk Ying (515 West 54 Ave Vancouver and later of 2008 West 51st Ave Vancouver). She raised C$120,000.
ii) Son - David Hon Kam Hung (Date of Birth 2 Sept 1950/B.C.Driving Licence 2788025) and his wife Alice Hon Yoke Leng (DOB 14 Aug 1949/BCDL 2116473). They raised C$48,500.
iii) Fei-Fung Lui, a UBC student who listed her address as 4135 Salish Drive, Vancouver. She raised C$81,500.
The judge also ordered Hon's three passports British, Taiwan and Chinese - to be held. On March 2, 1977, after several legal delays an extradition hearing began.
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Hon's lawyer, H.A.D. Oliver |
Three months later, a Federal Court judge agreed with Hon's lawyer and ordered the extradition hearing stopped. Hon is released, bail is discontinued and his three passports returned. The government of Canada appealed this ruling to the Federal Court of Appeals Canada.
On January 24, 1978, the Federal Court of Appeals overturned the ruling and ordered Hon's re-arrest and the resumption of extradition hearings but by that time Hon had left Canada for Taiwan.
Hon died at the age of 76 in August 1999 in Taipei. The following year the Justice Department of Hong Kong began its court challenge to go after Hon's estate.
In an analytical report done by the RCMP liason office in Hong Kong around the time the corrupt cops were fleeing, it was estimated "that 35 per cent of all Chinese policemen were triad members."
Police officers and lawyers familiar with proceeds of crime investigations said the money brought in by the corrupt Hong Kong cops is likely to have been legitimized through a variety of means and that there is very little the authorities can do now, unless the same players are actively involved in criminal enterprises.
"If they (Hong Kong) go after the assets in B.C. they will have to show a direct money trail to Hon? that will be an enormous task given the passage of time," said a police official.
"How are they going to prove what portion of the estate came from criminal enterprise and what is legitimate"
"If this matter extends to a Canadian court, it will be a first and have huge implications," he said.
Tracking a family fortune in Vancouver
The following properties and companies are listed in a covert Canadian police study on the asset base of the family of corrupt ex-Royal Hong Kong police sergeant Hon Kwing Shum.
1) 3500 block, Hudson St. Vancouver
House assessed value at $1,157,000.
2) 2000 block, West 51 Ave, Vancouver
House assessed value at $433,800.
3) 5600 block, Columbia Street Vancouver
House assessed value at $662,000.
4) Unit block, West 37th Ave Vancouver.
House assessed value at $630,000.
5) 1700 block, East 47th Ave. Vancouver.
House assessed value at $340,000.
6) 500 block, West 54th Ave Vancouver.
House assessed value at $418,300.
7) 1600 block, 63rd Ave Vancouver.
House assessed value at $636,000.
8) 5200 block, Torquoise Drive, Richmond.
House assessed value at $293,000.
9) 1000 block, West 70th Avenue Vancouver.
House assessed value at $228,500.
10) 2000 block, West 41 Ave Vancouver.
Commercial/residential property assessed value at $716,000.
11) 400 block, East 5th Avenue.
Vancouver Apartment assessed value at $74,400.
COMPANIES
1) Hon Investment Inc.
Company records suggest this is the family's umbrella company. Incorporated in British Columbia on Sept 30, 1983.
2) Yoneda & Associates Consultants Ltd.
Company Incorporated on Sept 5, 1984.
3) KAD Investments Ltd.
Incorporated on May 22, 1981.
4) Esprit Management Inc.
Incorporated on June 16 1983. Last annual report filed on June 16, 2002.
5) Vincent Chan Enterprises Ltd.
Incorporated on Feb 29, 1984. Last annual report filed on Feb 28, 2002.
6) Sunaco Enterprise Ltd.
Company was incorporated on Sept 13, 1983 and dissolved on Feb 10, 1989.
7) SDI Software Design Inc.
Incorporated on Oct 24, 1988. Dissolved on March 30, 2001.
8) CPI Manufacturing and Distribution Inc.
Incorporated on Feb 3, 1988. Dissolved on July 15, 1994.
9) L & H Engineering Consultants
Incorporated on Feb 24, 1977. Dissolved on July 24 1987.
10) MACA Management and Computer Consulting Inc.
Incorporated on Aug 23, 1984. Dissolved on Jan 20 1989.
11) Terran Distribution Ltd.
Incorporated on April 10, 1981. Company dissolved on Sept 25, 1987.
12) Bloomingdale Development Ltd. Incorporated on July 18, 1984 and dissolved on Dec 11, 1987.
