Convoy Collateral Limited filed a new writ yesterday against its former director Roy Cho Kwai-chee and other 12 defendants seeking claims amounting to about HK$700 million.
In the writ of summons filed to the Court of First Instance, the subsidiary of Convoy Global Holdings (1019) said it has suffered loss and damage arising from a number of transactions.
These involved the wrongful acquisition of First Credit shares, which led to a loss of HK$260 million, also, wrongful acquisition of True Surplus International Investment that led to a loss of HK$89.39 million.
The transactions also included the manipulation of China Green shares (0904) that led to a failed conversion of the company's convertible note which in turn did not allow the company to realize a profit of HK$298 million.
Also, the grant of unsecured loans to Athena Power on irrational terms that led to a loss of HK$34.6 million and a loss of HK$33.2 million from investments in Checkmate Finance.
Convoy also said it had successfully approached the court in the British Virgin Islands to grant an order to freeze Cho's assets held there.
The court will hear the first writ on March 6.
The file of writ comes after Cho's flagship Town Health International Medical Group (3886) announced on Tuesday night that its office was raided by Independent Commission Against Corruption and Securities and Futures Commission last Friday.
The ICAC said it and the commission searched the offices of a listed company involved in a corruption investigation in a joint operation mounted on Friday.
Convoy filed a writ in the High Court in December last year seeking damages from 28 defendants including Cho, associates and companies linked to the Enigma Network - 50 listed companies whose shares one should not own, according to commentator David Webb.
Among the defendants were four former executives who had earlier been arrested by the Securities and Futures Commission and ICAC former chairman Quincy Wong Lee-man, former vice chairman Rosetta Fong Sut-sum, former director Christie Chan Lai-yee, and former chief executive and Lerado Financial Group chairman Mark Mak Kwong-yiu.
Since December, the ICAC has been studying the civil writ filed against Cho, and his associates for the wrongful transfer of funds to determine if there is enough evidence for an arrest.
In November, the SFC ordered a trading halt in all shares of Town Health International Medical Group and China Wah Yan Healthcare (0648).
Shares of Town Health fell 45 percent last year, while shares in China Wah Yan dropped 56 percent.