Chen v R

Gang Chen and Zongliang Jiang were found guilty of multiple counts of obtaining by deception and secret commissions, arising from their involvement in a complex fraud scheme orchestrated by Gang Chen and Huang. Chen was a solicitor, and Jiang a bank employee, both involved in deceiving three banks into providing loans to fictitious or unknowing borrowers for the benefit of Huang’s property development company, LV Park. Chen’s role was central, while Jiang assisted by processing fraudulent loan applications. Both Chen and Jiang appealed their convictions and sentences. Chen challenged both his conviction and sentence, arguing that s 240(1)(b) of the Crimes Act required personal incurring of debt or liability and that he was not obliged to disclose the true position to the banks. Jiang appealed his sentence, claiming it was manifestly excessive and that the imposition of a minimum period of imprisonment (MPI) was inappropriate.

The Court of Appeal granted the extensions for late filing of appeals. Regarding Chen's conviction, the Court found that s 240(1)(b) does not require the defendant to personally incur a debt or liability. The provision allows for credit to be obtained by another person, with a corresponding debt incurred by that person. The Court also upheld the finding that Chen, as a solicitor, owed a duty to disclose material particulars to the banks, including the true identity of the borrower and false employment information provided. Regarding sentencing, the Court found that the imposition of an MPI for Chen was in error, given his previous good character and lack of personal financial gain. For Jiang, while the starting point was appropriate, the Court found the MPI was inappropriate given Jiang's cooperation post-sentencing and the forfeiture order that recouped significant funds.

In conclusion, the Court dismissed Chen's appeal against conviction, upheld his appeal against sentence by quashing the MPI, and dismissed Jiang's appeal against sentence in part by also quashing the MPI.