January 5, 2021
Former company director general on trial over $700,000 fraud of investors
Phnom Penh Municipal Court yesterday began the trial of a French-Cambodian businessman, who is accused of cheating three investors out of more than $700,000 while he was the director general of a company between 2014 and 2015.

Presiding Judge Im Vannak identified the accused as You Chikhiang, 55, the former general director of HICLO Seafood Co Ltd living in Takhmao commune, in Kandal province’s Takhmao city.

He identified the plaintiffs as Stephang Chappaz Guillaume, Merle Paul Autoine and Charles Emmanuel. They are French investors and the stakeholders of HICLO Seafood Co, Ltd living in Paris,France,

Judge Vannak said Chikhiang was charged with “Breach of Special Trust by Administrators or Other Persons” under Article 393 of the Criminal Code.

He added that the accused was arrested on January 6, 2017. He was sued by the three plaintiffs.

Chao Sokpheng, one of the plaintiffs’ lawyers, said that in 2013, Chikhiang persuaded the plaintiffs, who were his friends living in France, to invest in an ice factory in Preah Sihanouk province.

Sopheng said the accused also persuaded them to buy 4.7 hectares of land located in Preah Sihanouk province’s Prey Nop district to construct the ice factory.

He said his clients trusted Chikhiang and on August 13, 2013 they formed a company named HICLO Seafood Co Ltd in Cambodia.

Sopheng said because he is Cambodian, his clients appointed him as the director.general

He added that his clients later transferred a total of $742, 219 to Chikhiang via a bank in Cambodia for the investment.

“The amount was for the fees of both buying the land in Sihanoukville and for constructing the ice factory,” Sokpheng said. “But after receiving the money, Chikhiang did not buy the land and used it for himself.”

Sokpheng noted that after realising that they were cheated, his client lodged the lawsuit against Chikhiang at the Penh Municipal Court on January 4, 2017.

He said his clients are demanding $742,219 in damages and another $100,000 as compensation from the accused.

During yesterday’s trial, Chikhiang denied the allegation.

He said that according to a contract signed between the plaintiffs and himself, the company could only lease the land in Cambodia but could not buy it for investment.

“The plaintiff was
already aware that as foreign investors or a foreign-owned company, we cannot buy land to open the factory in Cambodia. So we decided to lease it,” Chikhiang said.

He said he only received more than $400, 000 from three plaintiffs to construct the ice factory and not $742, 219 as they claimed.

Chikhiang added that money was completely used for the factory’s construction and ice production activities.

He asked the court to drop the charge and release him from prison.

A verdict is due January 25.
https://www.khmertimeskh.com/50800525/f ... investors/

so is there really a ice factory?

Why take 4 years to get it to court?

January 26, 2021
Businessman acquitted in $700,000 fraud case
The Phnom Penh Municipal Court yesterday acquitted a French-Cambodian and released him from prison after four years, over an accusation that he defrauded his company out of more than $700,000 between 2014 and 2015.

Presiding Judge Im Vannak identified the accused as You Chikhiang, 55, the former general director of HICLO Seafood.

Judge Vannak identified the plaintiffs as Stephang Chappaz Guillaume, Merle Paul Autoine and Charles Emmanuel, all French stakeholders in HICLO Seafood living in Paris, France.

He said Chikhiang was charged with “Breach of Special Trust by Administrators or Other Persons” under Article 393 of the Criminal Code after being arrested on January 6, 2017.

“The accused Chikhiang is found not guilty in this case,” Judge Vannak said yesterday, emphasising the decision was due to there not being enough evidence against him.

Judge Vannak said the court found no evidence of fraud because the amount of money the accused received from the plaintiffs was spent on the construction of a factory and its operational costs, not for his personal use as they claimed.
https://www.khmertimeskh.com/50806963/b ... raud-case/

Hard lesson for the French investors...