Carrian Group

Hong Kong conglomerate that collapsed in the 1980s due to fraud and corruption

Carrian GroupCompany type| Public

|

Founded| 1977
Founder| George Tan
Defunct| 1983
Fate| Bankruptcy
Headquarters| Hong Kong

Area served

| Australia
Japan
Malaysia
New Zealand
Taiwan
Thailand
United States
Products| Diversified Investments

The Carrian Group was a Hong Kong conglomerate that was known for rapid expansion in the 1980s, which ended in collapse amidst a major corruption and fraud scandal.[1]

## Founding[edit]

Main article: George Tan

Carrian was founded in 1977 by George Tan Soon-gin, who fled Singapore following a bankruptcy in 1974.[2][3]

## Operations[edit]

The company, at various points of its existence, had operations in pesticide, tourism, shipping, insurance, taxi fleets, and restaurants.[3][4]

However, the company's main business is noted to be in real estate.[3]

## History[edit]

In January 1980, the group, through a 75% owned subsidiary, purchased Gammon House (a commercial office building, now Bank of America Tower) in Central District, Hong Kong for HK$998 million. It grabbed the limelight in April 1980 when it announced the sale of Gammon House for HK$1.68 billion, a high return on investment that surprised Hong Kong's property and financial markets and developed public interest in Carrian.[5]

In the same year, Carrian capitalised on its notoriety by acquiring a publicly listed Hong Kong company, renaming it Carrian Investments Ltd., and using it as a vehicle to raise funds from the financial markets.

The group grew rapidly in the early 1980s to include properties in Malaysia, Thailand, Singapore, Philippines, Japan, and the United States. Its rapid expansion has led to rumors over the source of its capital, with various rumors speculating the capital came from Imelda Marcos, Gosbank, and a lumber corporation in Borneo.[3]

## Downfall[edit]

Carrian Group became involved in a scandal with Bank Bumiputra Malaysia Berhad of Malaysia and its Hong Kong-based subsidiary Bumiputra Malaysia Finance. Following allegations of accounting fraud, a murder of a bank auditor, and the suicide of the firm's adviser, the Carrian Group collapsed in 1983, the largest bankruptcy in Hong Kong.[6]

The scandal and its ultimate downfall eventually exposed the mystery surrounding the seemingly inexhaustible capital that Carrian had as nothing more than loans from banking institutions.[3]

## Legacy[edit]

Almost no traces of Carrian Group remain following its collapse. A Hong Kong restaurant that specializes in Teochew cuisine, Carriana, was loosely named after Carrian due to links between one of its former owners, Chim Pui-chung, and Carrian. Carriana is currently a listed company in Hong Kong.[7]

## Media portrayal[edit]

The 2020 TVB drama series Of Greed and Ants (黃金有罪) is based on various aspects of the fraud scandal that Carrian Group was engulfed in.[8]

The 2023 film The Goldfinger (金手指) is based on the events surrounding the company’s rise and subsequent fall. Produced and distributed by Emperor Motion Pictures, the film was released on 30 December 2023.[9]

## Books[edit]

* Vengadesan, Martin; Sagayam, Andrew (2019). Malaysian Murders and Mysteries:A century of shocking cases that gripped the nation. Singapore: Marshall Cavendish Editions. ISBN 978-981-4868-82-2. Retrieved 5 March 2020.
* Naylor, R.T. (2004). Hot Money and the Politics of Debt (Third ed.). McGill–Queen's University Press. ISBN 0-7735-2743-5. Retrieved 5 March 2020.
* Fung, Bongyin (2017). Cheng, Hoiben; Lau, Yusum (eds.). 香港企業併購經典（增訂版） [Hong Kong Corporate Mergers & Acquisitions Classics (Updated Version)] (in Traditional Chinese) (August 2017 Hong Kong Updated Version, 1st Printing ed.). Hong Kong: Joint Publishing. ISBN 978-962-04-4225-4. Retrieved 5 March 2020.

## References[edit]

1. ^ Vengadesan & Sagayam 2019, p. 72.
2. ^ Naylor 2004, p. 209.
3. ^ a b c d e Fung 2017, p. 45.
4. ^ Bangsberg, P.T. (15 September 1987). "Hong Kong Acquits Defendants In Costly Carrian Fraud Case". joc.com. Retrieved 5 March 2020.
5. ^ Ali Cromie (February 19, 1986). "Carrian fraud trial opens in Hong Kong". The Sydney Morning Herald.
6. ^ "Carrian Receivers". The New York Times. October 19, 1983.
7. ^ Chow, Hin (16 November 2016). "此馬來頭大的佳寧娜" [Carriana: The "Horse" With a Big Background]. am730 (in Chinese (Hong Kong)). Retrieved 4 March 2020.
8. ^ Wong, Zi Hang (8 January 2020). "【黃金有罪】參考真實「佳寧案」 當年轟動一時的大騙案" [Of Greed And Ants is based in the real-life Carrian Scandal, [which was] a major fraud scandal at the time] (in Chinese (Hong Kong)). Retrieved 20 January 2020.
9. ^ "专访《金手指》导演庄文强：这次我放弃了好多以前港产片的要素" [Interview with Zhuang Wenqiang, director of The Goldfinger] (in Chinese (Hong Kong)). 1 January 2024. Retrieved 1 January 2024.

## External links[edit]

* Independent Commission Against Corruption (Hong Kong): Report on Carrian
* Philip Bowring's summary article on Carrian

* v
* t
* e

Corporate scandals

* South Sea Company (1720)
* Panic of 1890 (Baring crisis) (1890)
* Salad Oil (1963)
* Kinney Services, Inc. (1971)
* Banco Ambrosiano (1982)
* Carrian Group (1983)
* Guinness (1986)
* Bofors scandal (1990)
* Polly Peck (1990)
* Bank of Credit and Commerce International (1990)
* Robert Maxwell (1991)
* Indian stock market scam (1992)
* Banesto (1993)
* Metallgesellschaft (1993)
* Towers Financial Corporation (1993)
* Barings Bank (1995)
* Sumitomo Corporation (1996)
* Lysine price-fixing conspiracy (1997)
* Daewoo (1999-2006)
* Long-Term Capital Management (2000)
* CINAR (2000)
* One.Tel (2001)
* Enron (2001)
* Adelphia (2002)
* WorldCom (2002)
* Parmalat (2003-2005)
* Tyco (2004)
* Bayou Hedge Fund Group (2005)
* Société Générale (2008)
* Bear Stearns (2008)
* Libor (2008–2012)
* Anglo Irish Bank (2008–2011)
* Volkswagen emissions scandal (2008–ongoing)
* Satyam (2009)
* 2G spectrum case (2010–2019)
* National Herald corruption case (2010–ongoing)
* News Corporation scandal (2011)
* Olympus (2011)
* Indian coal allocation scam (2012)
* OCZ (2012–2013)
* Saradha Group financial scandal (2013–ongoing)
* Forex (2013–ongoing)
* Toshiba (2015)
* 1Malaysia Development Berhad (2015–ongoing)
* Wells Fargo account fraud scandal (2016–ongoing)
* Facebook–Cambridge Analytica data scandal (2018)
* Moser Baer (2019)
* Wirecard (2020)
* Nikola (2020)
* Facebook company files leak (2021)

See also
Accounting scandals
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