HK: A syndicate led by a woman earned at least HK$10 million over a two-year period by tampering with the electricity and gas meters of 112 restaurants

July 1, 2013 Leave a comment

Gang collects $10m in meter-tamper racket
Staff reporter
Friday, June 28, 2013
A syndicate led by a woman earned at least HK$10 million over a two-year period by tampering with the electricity and gas meters of 112 restaurants, the District Court heard.

Between the middle of 2010 and August last year, the gang helped the restaurants save between HK$6,000 and HK$70,000 in charges each month.

CLP, Hongkong Electric and Towngas are said to have lost a total of HK$30 million, nearly a third of which went to the syndicate.In January last year, Towngas received an anonymous tip that a gang had been altering meter readings to cheat the company.

Towngas reported the tipoff to the police, who sent undercover officers.

The operation led to the arrest of 114 people, 10 of whom were charged.

Two restaurant managers, But Wai-yip, 67, and Chung Kam-kai, 68, and the one who altered the meters, Hioe Chi-chung, 38, appeared in court yesterday.

They pleaded guilty to conspiracy to defraud and agreed to testify against the seven other defendants.

They were granted bail, with the trial set to continue on August 22.

The alleged woman mastermind, Lam Lai, 36, and six other syndicate members aged between 40 and 61 will appear in court on Tuesday.

The prosecution said Hioe tampered with the meters on the instructions of Lam.

Hioe charged HK$1 for every unit of electricity and HK$13 for every unit of gas taken off the readings. The 26 restaurants he served saved up to 40 percent of their electricity and gas expenses. Hioe, in turn, earned about HK$20,000 a month.

Lam and her boyfriend allegedly taught Hioe how to dismantle and alter a meter.

A manager of two restaurants involved in the scheme said a man offered to help him save up to 30 percent of his electricity and gas charges. He said this amounted to HK$140,000 for the two restaurants.

The restaurants involved include those serving seafood, hot pot and rice noodles, and fast-food outlets.

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