Former JP Morgan banker Catherine Leung pleaded not guilty on Thursday to charges that she bribed the chairman of Kerry Logistics Network in an attempt to win a role on a Hong Kong IPO.
Leung, who was JP Morgan’s vice chair of Asia investment banking before she left in 2015, faces two charges related to offering employment for Ang Ren-yi, the son of Kerry Logistics’ then chairman Ang Keng-lam, in order to seek favour when the company selected advisers for its IPO.
The trial is set to start on February 25 2020.
Hong Kong’s Independent Commission against Corruption has alleged that Leung arranged a job offer for Ang Keng-lam’s son despite a low grade point average and lack of finance or accounting background, according to a court document seen by IFR.
“We are a strong contender. Blink Blink nod nod, can we find a place for his son…” she wrote in an internal email on January 10 2010, according to the court document.
Ang Ren-yi received an offer on January 27 2010 and was employed as an analyst at JP Morgan Securities in Hong Kong from June 28 2010 to October 28 2011 with a starting salary of HK$545,000 (US$69,760) and housing benefit of HK$180,000 a year.
Leung is the first person in Hong Kong to face criminal charges related to the bank’s “Sons and Daughters” programme, which was used to screen potential employees that had been referred by clients, potential clients or state officials.
The prosecutor asked the court to consider merging Leung’s case with another ongoing investigation with a similar list of witnesses. The suspect in that case is currently in mainland China.
JP Morgan was ultimately not involved in the HK$2.5bn Kerry Logistics IPO in December 2013. BOC International, Citigroup, HSBC and Morgan Stanley were the joint sponsors, with CIMB on board as joint bookrunner.
JP Morgan previously said the charges related to a historical case, which it settled in 2016.
“We strengthened our compliance procedures and controls around hiring and reinforced the high standards of conduct expected of our people,” the bank said.
In November 2016, the bank paid around US$264m to several US government bodies to settle claims that it hired friends and relatives of influential business people and government officials in order to win business, in violation of anti-bribery laws.
Leung declined to comment when approached by IFR.
