Hong Kong Former Banker Jailed Four Years Over $1.6B False Credit

Hong Kong sentenced former China Construction Bank (Asia) relationship manager Lam Chun-yin to four years in prison on September 18. Authorities said he accepted more than $470,000 in Tether cryptocurrency to authenticate false standby letters of credit worth over $1.6 billion.

Lam pleaded guilty to conspiring to accept advantages from a fintech company employee and others. Between April and June 2022, he authenticated multiple documents falsely presented as CCB-issued standby letters of credit. He also authenticated two collateral letters allegedly issued by investor Yu Po Holdings and endorsed by CCB.

Lam worked in retail banking and had no authority to handle commercial credit facilities or letters of credit. The bank later discovered the documents during an internal investigation and reported the matter to Hong Kong’s anti-graft agency. The court ordered Lam to repay about HK$3.7 million, matching the value of the bribes. Authorities have also sought arrest warrants for other people allegedly involved.