Former Chairman of GAOYU FINANCE involved in "inflating figures" to purchase a Rolls-Royce, denies conspiracy to commit fraud and fraud charges

PF Group (now GAOYU FINANCE) (08221.HK) former chairman Li Zhenbang is accused of conspiring with car dealers to inflate the vehicle price and first registration tax by approximately HKD 3.1 million when commissioned to purchase a motorhome for the company between 2020 and 2021. The case opened for trial on Wednesday (5th) at the West Kowloon Magistrates' Court (acting as the District Court), with Li Zhenbang denying the charges of conspiracy to defraud and fraud.

Notable horse owner and major shareholder Huo Yutang testified that he and his wife invested in PF Group in 2019, holding a total of 75% of the company's shares, and arranged for the defendant to serve as the company's chairman with a monthly salary of approximately HKD 168,000. However, the defendant indicated that he needed to hold shares to serve as chairman, so Huo Yutang lent 15% of the equity to the defendant, which has not been returned to date.

Huo Yutang stated that at the end of 2020, the defendant suggested the company expand into the auto loan business and proposed purchasing a Rolls-Royce for approximately HKD 3.8 million from the UK. After the vehicle arrived in Hong Kong, he was asked to pay an additional HKD 2.3 million in license tax, totaling about HKD 6.1 million paid by Huo Yutang. However, he later learned that the total cost of the vehicle and tax was only about HKD 3 million, and the vehicle was not registered under the company's name but was held by a BVI company unrelated to PF Group, leading Huo Yutang to report the matter to the ICAC