Five people admit to HK$3.2 million ParknShop wage fraud scheme

Five people have admitted to defrauding ParknShop of HK$3.2 million by submitting false wage claims for warehouse workers who never showed up for their shifts.

The defendants entered guilty pleas at the District Court to conspiracy to defraud charges. They are Lau Kin-pong, 44, a former senior supervisor at ParknShop's eCommercial Distribution Centre; Tai Kin-man, 43, a former assistant manager at Earnward Warehouse; and three ex-warehouse employees of Logistics Network Management: Wong Wai-fung, 27, Wong Pak-kan, 28, and Lau Tsz-pan, 28.

How the scheme operated

The Independent Commission Against Corruption said the former supermarket employees colluded with contractor staff over two years to deceive ParknShop by falsifying attendance records of 13 warehouse workers who were not on shift at the chain's distribution centre.

The fraud took place at ParknShop's eCommercial Distribution Centre, where logistics personnel sorted online orders and packed goods for distribution to customers. The workers were provided by contractor Logistics Network Management but supervised by another company, Earnward Warehouse.

Logistics Network Management facilitated wage payments and billed ParknShop based on workers' shift hours, while daily attendance sheets were verified by the assistant manager of Earnward Warehouse, according to the watchdog. The arrangement created an opportunity for the conspirators to manipulate records across the three-company structure, billing the retail giant for work that was never performed.

The ICAC announced the guilty pleas and disclosed details of the investigation.

Source: South China Morning Post