15 Sep 2020
JPMorgan JPM.N did not carry out key checks when employing the son of a potential client, a prosecutor told a Hong Kong court on Monday, the first day of a bribery trial of the bank’s former Asia investment banking vice-chairwoman, Catherine Leung.
Leung, who repeated a not guilty plea on Monday, is charged with bribing the then chairman of Kerry Logistics Network Ltd 0636.HK, Ang Keng-lam, by employing his son at the U.S. investment bank’s Hong Kong office in 2010.
She did so, the prosecution said, in anticipation that Ang would influence his company to give JPMorgan a role on its up-coming initial public offering (IPO).
The investment bank did not consult its legal and compliance department until after the younger Ang’s employment contract at JPMorgan was signed, prosecution barrister Robert Lee said in his opening submission.
Lee also cited an email he said was written by Leung when Kerry Logistics was in the early stages of preparing for its IPO.
“Son is very keen to do IB (investment banking), but does not interview well … The last thing I want is for us to go slow and they ask another bank, and I am sure someone will give him a full time offer given the mandate that is up for grabs,” Lee cited Leung as saying in the email.
Leung made no comment in court apart from her plea and declined to comment when approached by Reuters after the first day of her trial.
It was not immediately clear whether Ang or his son, Ang Ren-yi, would be asked to give evidence and neither could be reached through their employer on Monday after Leung’s plea, or ahead of the trial.
By Sharon Tam and Alun John, Reuters, 14 September 2020
Read more at Reuters
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