The Accounting and Financial Reporting Council (AFRC) in Hong Kong has sanctioned three former certified public accountants (CPAs) over misconduct following the reinstatement of their fraud convictions.
The AFRC said it has publicly reprimanded Mak Kwong Yiu, Chan Lai Yee and Wong Shuk On and imposed financial penalties of HK$400,000 ($51,028), HK$200,000 and HK$160,000, respectively.
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The disciplinary action follows a November 2025 judgment by the Court of Final Appeal, which restored the trio’s 2021 District Court convictions for conspiracy to defraud.
Under the Accounting and Financial Reporting Council Ordinance, a CPA is deemed to have committed professional misconduct if convicted in Hong Kong or elsewhere of an offence involving dishonesty.
As the trio were members of the Hong Kong Institute of Certified Public Accountants (HKICPA) at the “relevant times” and were convicted of offences involving dishonesty, the regulator found each of them guilty of CPA misconduct.
The case arose from bond placements by Convoy Financial Holdings, formerly listed on the Stock Exchange of Hong Kong Limited (HKEX) and delisted in May 2021.
At the time, Mak was CEO, Chan was chief financial officer and Wong was manager of the finance and accounts department at the company.
According to the Court of Final Appeal’s findings, Mak, with assistance from Chan and Wong, arranged for an intermediary to be inserted into the bond placements “as a disguise”.
This structure enabled more than HK$25m to be diverted to a connected entity in which Mak held an indirect interest, avoiding compliance with HKEX connected transaction rules.
The three were convicted of conspiring to defraud the company, its board, shareholders and potential investors, and separately, the HKEX.
AFRC head of discipline Hester Leung said: “Professional accountants in business play a critical role in upholding strong corporate governance, effective internal controls and high-quality financial reporting.
“When individuals in such roles engage in fraudulent or dishonest misconduct, or deliberately circumvent regulatory requirements, they seriously undermine public confidence and bring discredit to the profession.
“The AFRC will take firm and decisive action against such misconduct to safeguard market integrity, uphold professional standards and protect the public interest.”
The regulator said the three were accountants in business, not practising auditors, and had left the HKICPA in 2023.
If they had still been members, the AFRC said it would have considered suspending or cancelling their registrations.
