Hong Kong customs arrests CEO and director of scandal-hit drug rehabilitation centre
- Authorities arrest Lee Kwok-kei and Reverend Siu Yu-fat over probe into refunds from Christian Zheng Sheng College
Customs officers have arrested the chief executive and a director of a scandal-hit drug rehabilitation centre in Hong Kong, after the now-closed institution allegedly failed to refund students as promised.
The Post learned the person arrested on Wednesday was CEO Lee Kwok-kei, aged 47, of the Christian Zheng Sheng Association, which operates Christian Zheng Sheng College, a drug rehabilitation centre in Ha Keng on Lantau Island.
Authorities a day earlier arrested 66-year-old Reverend Siu Yu-fat, who serves as a vice-chairman on the association’s board.
The college suspended operations on Sunday, after its bank accounts had been frozen by police since January.
Customs said the pair were arrested on suspicion of having applied for a false trade description for the service supplied, and of engaging in unfair trade practices involving a misleading omission, in contravention of the Trade Description Ordinance.
“Customs earlier received information alleging that a staff member of a rehabilitation institution falsely claimed to a customer [saying] the prepaid book fees for a two-year training course could be refunded,” it said. “However, the institution did not refund the fees to the customer in the end.”
It added that the pair had claimed the accommodation deposit paid by the customer would be refunded after his children completed the course.
But it was only after the institution ceased to provide the training course that the staff member informed the customer the deposit would not be refunded even if the course was discontinued.
Customs officials estimated the amount involved was approximately HK$7,495 (US$960), while the accommodation deposits amounted to about HK$8,000.
The pair were released on bail pending further investigation.
Siu told the Post that the issue was relatively minor and that law enforcement agents did not fully understand the situation. He said the issue was related to directors who were in charge before he joined the board in April this year.
Siu also claimed that the previous directors had reached an agreement regarding how to handle refund issues.
Customs said it would not rule out the possibility of making more arrests.
Under the Trade Description Ordinance, offenders face a maximum penalty of a fine of HK$500,000 and imprisonment of five years.
In January, police detained four former directors and were seeking the arrest of three others in relation to allegations of fraud and embezzlement of HK$50 million in donations to fund the college in 2020.
The wanted trio – founder Jacob Lam Hay-sing, principal Alman Chan Siu-cheuk and Chan Yau-chi – are accused of transferring funds from the association’s bank accounts to their personal accounts. All of them are out of Hong Kong.
