1 September, 2015
A High Court jury has convicted Hong Kong businessmen Nanik Dayaram and Mahesh Nanik Dayaram on nine counts of conspiracy to defraud and sentenced them to imprisonment for 10 years in connection with the Days Group of companies.
In 2011, representatives of FTI Consulting were appointed as Liquidators of the Days Group companies which included Days International and Days Impex. The Liquidators' findings raised serious concerns that the directors and officers of the Companies were involved in fraudulent activities. From our investigations we found:
- Missing trade finance and shipping documents
- A disproportionately high volume of trade with certain customers and suppliers
- Suspicious shipping, trading and bank documents, and
- Suspicious banking transaction patterns occurring at month ends
- A report was subsequently made to the Commercial Crime Bureau of the Hong Kong Police.
Established and operated by the Dayaram family, the Group was engaged in the trading of electronic products and brands as well as non-branded electronic components. The Group was also involved in other business lines including the trading of garments and dealings within the hospitality sector with operations in Hong Kong, China, Canada, Singapore and Brazil.
At the time of the Liquidators' appointment, the Group owed their lenders approximately HKD$400 million with a significant proportion of its debt relating to trade financing facilities.
The Liquidators also embarked upon recovering potential assets located in Canada and, as a result, have already obtained recognition of their appointment in Ontario, Canada.
Our pursuit for further potential recoveries in this matter is continuing.
For further information, please contact:
Vincent Fok, Managing Director, FTI Consulting
vincent.Fok@fticonsulting.com
