Earlier this week, a Hong Kong-based businessman was sentenced to six years in jail on charges of money laundering. Caron Yeung was a prominent financial worker as well as the owner of the professional soccer team Birmingham City. The 54-year-old pleaded guilty to all charges on Monday, March 3 when he was sentenced by Judge Douglas Yau.
Yeung was charged with multiple counts of money laundering and other financial frauds, with $720 million passing through his bank accounts during a six year period from 2001 to 2007. After becoming the majority shareholder of Birmingham City in 2011, Yeung was charged, but did not see the inside of a courthouse for three more years.
Although the jail sentence has been officially entered in court records, officials do not know if Yeung is going to appeal its length. When passing down the sentence, Judge Yau spoke to Yeung and told him that his jail time must include an element of deterrence for the general population, to discourage the wealthy from abusing Hong Kong's financial system.
The investigation into Yeung began after law enforcement officials received an anonymous letter alerting them to Yeung's illegal dealings. According to the letter – and the evidence collected against him – Yeung used accounts at both the Wing Lung Bank and HSBC Holdings to launder his money from 2001 to 2007.
Amid all of the charges, Yeung resigned as president of both Birmingham City and Birmingham Holdings Limited – the parent company that owns the soccer team – at the end of last week. After the sentence was handed down, Judge Yau told reporters that it is important that the financial integrity of the Hong Kong banking system remain intact, which is why a harsh sentence was needed for such a prominent case.
