Wholesale operator to forfeit $6.4 million from illegal bleaching cream sales

A Chinese businessman whose lifestyle authorities say was financed partly by the illegal sale of 'bleaching creams' has been ordered to pay the Government a $6.4 million penalty.

The order was made against Chee Chung, a wholesale operator, on March 23 in the Supreme Court under the Proceeds of Crime Act (POCA), the Financial Investigations Division (FID) confirmed in a statement on Monday.

The fine represents the amount he raked in through his illegal activity.

The FID says its law enforcement partners are “increasingly” vigilant in looking beyond predicate offences to identify where a benefit has been derived from criminal activities for which persons have been charged or convicted.

“The genesis and passage of this case through the court should be a reminder to the public and business operators of the strength of POCA,” said Keith Darien, Principal Director of Investigations at the FID, in a statement.

“If you benefit from breaking the law, the FID will utilise POCA to remove that benefit.”

Chung was arrested and charged after a quantity of bleaching cream was found at his business place during an intelligence-led operation on April 11, 2017.

He was charged with unlawful possession of a quantity of products stored for sale contrary to section 26 (1)(h) of the Pharmacy Act. 

The products contained substances which are classified as List Two and List Four drugs or 'prescription drugs' and would require a medical doctor's authorisation before use, the  FID said.

Chung was also charged with breaches of section 210 of the Customs Act and breaches of section 4(1) of the Food and Drugs Act.

He was convicted on October 5, 2018 in the Kingston and St Andrew Parish Court for breaches of the Pharmacy Act.

He was freed of the charges related to breaches of the Customs Act and the Food and Drugs Act. 

The FID successfully made an application on October 5, 2018, to the Supreme Court to have him committed for consideration of a forfeiture or pecuniary penalty order under section 5 of POCA.

The agency said evidence was presented in court showing that Chung's lifestyle was, in part, financed by the unlawful sale of the products. 

Chung did not contest the charges and was cooperative throughout the trial, the FID said.

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