HONG KONG: Former HSBC Holdings Plc executive Chen Ching-hsiao was taken into custody in Hong Kong pending sentencing December 23 for accepting a bribe from a client seeking credit.

Chen, 46, had been free on bail since his arrest in August, the court heard yesterday. Chen pleaded guilty November 13 and Judge Stanley Chan said yesterday he had accepted the plea.

HSBC referred the case to Hong Kong's Independent Commission Against Corruption and provided "full assistance" during the investigation, the anti-graft agency said in an October 22 statement.

Chen pleaded guilty to one charge of accepting a $60,000 bribe from an unidentified Taiwanese client in June 2007 in return for "recommending or approving" two credit facilities.

Chen's lawyer Barry Chin said November 13 his client faces as much as 2 to 3 years in prison and had wanted to avoid the embarrassment of a lengthy trial.

Gareth Hewett, a spokesman for HSBC in Hong Kong, said yesterday by telephone he has no comment on the case.

The case is Department of Justice v. Chen Ching Hsiao, DCCC 1184/2009, Hong Kong District Court.

Bloomberg News

(HK Edition 12/01/2009 page4)