Prison for Restaurateur who fails to Pay Back

Mr Kin Kwan Chan was sentenced to three years 3 months imprisonment on Thursday 13th March by Cardiff Magistrates for failing to fully pay a confiscation order made at the Cardiff Crown Court in February 2007.

In 2004 Mr Chan and his wife, who ran the Happy Gathering Restaurant in Cowbridge Road, Cardiff were arrested by officers from the Regional Asset Recovery Team on suspicion of money laundering. In May of 2005, Mr and Mrs Chan pleaded guilty to concealing criminal property which involved an elaborate fraud by diverting restaurant money into bank accounts in both the UK and Hong Kong. Both received short prison sentences, Mrs Chan's being suspended for suspended for 12 months.

In February 2007, Mr Chan was ordered to repay £1.2 million and Mrs Chan £300,000, the amount each had benefited from their fraud; with an additional penalty of 5 years imprisonment on default. Mrs Chan paid her order however, Mr Chan paid back only £420,000 and was imprisoned pro-rata in default of the outstanding £780,000. This amount will still remain to be paid by Mr Chan even after he is eventually released from prison.

Detective Chief Inspector Christopher Dodd, Head of Regional Asset Recovery Team for Wales said:

"This has been a long and difficult enquiry. The Proceeds of Crime Act has real teeth but the impact of the legislation is only seen when the criminal assets are finally repaid to the court. In this case Mr Chan was given many opportunities and a significant period of time to satisfy the order; a view the court agreed with. Prison is a proper consequence for those who fail to pay court orders. We will continue to pursue Mr Chan’s assets for the outstanding amount."