Lily Chiang walks out Tai Lam Correctional Centre on Wednesday. Edmond Tang / China Daily

The first woman to sit as chair of the Hong Kong General Chamber of Commerce, Lily Chiang, has been ordered to spend the next three-and-a-half years in jail on fraud-related charges connected to stock manipulation.

In passing sentence, District Court Judge Albert Wang said he had been lenient with Chiang, acknowledging her record of community service, her contributions to society and that she is the mother of four children.

The judge added that had it not been for Chiang's commendable record she would have faced a much longer sentence.

Chiang sat calmly behind the bar as sentence was pronounced.

She tried to communicate with her husband, sitting on the other side of the court room, gesturing and making eye contact.

The judge went on that the nature of the crimes was "very serious".

He said the dishonesty of the defendants not only harmed the interests of many parties, including the company itself, shareholders, potential investors, and the Hong Kong Stock Exchange, more importantly, it shook the investors' confidence to the stock market.

The judge also noted that the value of the amount of shares involved was substantial.

He said Chiang was the "mastermind" of the crime plans.

Immediate imprisonment is the only appropriate sentence for Chiang, he concluded.

Chiang's husband, Gino Yu, said at the conclusion of the hearing that the families are "all learning to adjust the new reality".

He said they are "a family full of love, trust, support and understanding", and "all eagerly await the day that we are once again reunited".

Chiang's older sister Ann Chiang read out a family statement after hearing the sentence.

She said Chiang has gone through many difficulties in the past and her families believe she is strong enough to overcome this one too.

But the family refused to say whether they will seek appeal.

Chiang had been convicted last week of conspiracy to defraud, fraud, and authorizing of a prospectus containing information she knew to be false.

The judge noted Chiang's contribution to education, her commitment to public duty, the funds and scholarships she had set up to help the young.

He noted she had helped universities both in Hong Kong and on the mainland.

The judge also noted many mitigation letters he has received from "persons of high standing".

He also noted those letters from her family were very touching and he agreed that Chiang is unlikely to re-offend.

But in the end, said Judge Wong, he had to consider the public interest in determining sentence.

The 50-year-old businesswoman had breached listing rules of the Hong Kong Stock Exchange by urging her employees to trade shares and share options in her company, in Chiang's name, while the company was in the process of being taken over.

The court was told the transactions had earned Chiang over HK$3.7 million in illegal profits.

The other two defendants Shan Tahir Hussain and Pau Kwok-ping were jailed for 19 months and two years respectively.

China Daily

(HK Edition 06/16/2011 page1)