NEWS
FORMER MAJOR CELLAR CEO ALLEGEDLY SOLD USD3.2M EMBEZZLED WINES THROUGH HK AUCTIONS
By Tony Zhu
23-7-2021
Joseph Leung (left) Source: Major Holdings
The arrested former CEO of Hong Kong listed wine company Major Cellar, Joseph Leung, had allegedly sold HKD 25 million (USD3.21 million) worth of embezzled fine wines and spirits through auctions in Hong Kong, according to the South China Morning Post (SCMP).
The SCMP quoted sources as reporting that the 489 bottles of fine wine and spirits in question were sold last year through auctions taken place in Hong Kong.
However, it is not known which auction house or houses are involved. The SCMP also said Hong Kong police did not rule out the possibility of more arrests related to this case.
The case raises questions on how well the auction houses carried out their due diligence investigations before accepting auction lots.
The Theft Ordinance of Hong Kong stipulates that purchase of stolen goods is an offence and carries a maximum penalty of 14 years in prison.
Major Cellar tried to distance itself from the case upon media reports of Leung’s arrest by issuing a statement to say that the 489 bottles of wines and spirits believed to have been embezzled have never been stored in the company’s cellar and are therefore not on the cellar’s register.
The statement said the issue was Leung’s personal matter, the company did not foresee any impact on its business and operation.
According to Hong Kong police, a client from China entrusted Leung to store over 900 bottles of fine wines and spirits in a warehouse in Tuen Mun district last September.
When the client asked to retrieve all the bottles last month, Leung came up with various excuses and repeatedly delay delivery.
It was said that 489 bottles of wines worth abut HKD25 million went missing and were believed to have been sold by Leung.
The victim then reported the case to Tuen Mun police, where the warehouse is located. After investigation, Tuen Mun’s Major Crime Unit arrested the suspect in Kowloon on 9 July.
According to Hong Kong Exchanges and Clearing’s (HKEX) records, Leung resigned from Major Cellar as CEO, Executive Director and Director on 10 June “due to his desire to devote more time to his personal affairs”.
(the writer can be contacted at: info@thewinechronicle.com)
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