Chu Hai College files lawsuit against former finance chief

The Hong Kong Chu Hai College files a lawsuit against its finance director Yip Kam-chun who was earlier arrested on suspicion of misappropriating funds.The institution is seeking to recover more than 25 million dollars from Yip and related parties.

The Hong Kong Chu Hai College filed a lawsuit to the High Court on Monday against its finance chief Yip Kam-chun as well as Ho Chung-ling and a project design company.

Judicial authorities indicate the case will be heard Friday.

According to the writ, the defendants plotted to commit fraud by transferring misappropriated funds under the guise of payroll, autopay and academic expenditures.

The institution is seeking damages of 17.3 million dollars from Yip, and another 3 million dollars each from the two other defendants.

The Hong Kong Chu Hai College is requesting the court to declare that the defendants acquired partial ownership of the institution's assets via a constructive trust.

The college is also demanding compensation from the defendants for breach of confidence, breach of implied duty of fidelity as well as conspiracy to defraud.

This following the police's arrest of Yip in April this year on suspicion of misappropriating 770,000 dollars' worth of college funds.

Sources say authorities were notified of Yip's alleged activities by the institution's president.