Mr. Tsz Wah Fok - August 25, 2014

Mr. Tsz Wah Fok - August 25, 2014

Disciplinary Summary


August 25, 2014

Complaint

CGA-BC received a complaint from the former employer of now former member, Mr. Tsz Wah (Martin) Fok.  The complainant alleged that Mr. Fok fraudulently misappropriated funds, amongst other claims, during his employment as the company’s controller.  

Decision

The Discipline Committee Panel found Mr. Fok was in breach of CGA-BC’s Code of Ethical Principles and Rules of Conduct, in effect from September 18, 2010, as follows: 

Rules R101 – Discredit; R102 – Unlawful Activity; and R606 – Detrimental Actions because:

  • Mr. Fok issued himself T4 slips for 2007, 2008, 2009 and 2010 that did not include his full wages for those years; 
  • Mr. Fok issued his wife, who was not an employee of the company, T4 slips for 2007, 2008, 2009 and 2010 that included (at a minimum) the balance of Mr. Fok's wages that were not reported on his T4 slips for the years in question; 
  • Mr. Fok added his wife to his employer’s payroll on November 1, 2011; 
  • Payroll records indicate that the gross salary to his wife in 2011 was $20,000; 
  • Payroll records indicate that the gross salary to his wife in 2012 was $100,000; 
  • Schedule "A" attached to Mr. Fok's Affidavit dated February 20, 2014, shows an amount of $120,000 as payroll for Mr. Fok’s wife between the dates of November 7, 2011, and December 31, 2012; 
  • Mr. Fok filed false T4 slips for himself and his wife with Canada Revenue Agency for the 2007, 2008, 2009 and 2010 calendar years; 
  • On February 1, 2012, a wire transfer in the amount of $100,000 was sent to a third party in Hong Kong from the employer's US dollar account, which is the same amount Mr. Fok reported in an Affidavit as a temporary loan to a third party in Hong Kong. The complainant stated in an  Affidavit that the wire transfer was an example of misappropriation; and 
  • Mr. Fok used his employer’s funds to purchase computer equipment and related items for his own use during the period May 7, 2009, through November 23, 2012. 

R301 – Competence – because Mr. Fok

  • failed to remit (FMEP) payments as required in spite of having made the required deductions from an employee’s pay cheques.  Mr. Fok was responsible for the company’s payroll and should have been aware of the requirements; 
  • failed to make payroll remittances for the company for three months in 2013; and 
  • failed to file GST/HST Returns for the company for three years prior to 2013. 

Rules R610 – Requirement to Reply in Writing; and R611 – Assistance to the Board because

  • Mr. Fok failed to produce the records requested by the Investigator and failed to answer many of the Investigator’s inquiries in relation to the investigation.

Discipline Order

  • Barred from reinstatement in accordance with the Bylaws; 
  • Ordered to pay the maximum fine of $10,000; and 
  • Ordered to pay full costs in the amount of $7,611.66.