Joseph Lau gets the McSlammer

Copied and posted from CNN Money.com

UPDATE: McDonald's Former-Hong Kong Executive Convicted Of Bribery

April 15, 2009: 07:39 AM ET

(Adds comment from McDonald's that Lau's employment was terminated.)

HONG KONG -(Dow Jones)- A former local managing director of U.S. fast-food giant McDonald's Corp. (MCD) was convicted Wednesday of taking HK$2.5 million worth of illegal kickbacks, Hong Kong's antigraft agency said.

The Independent Commission Against Corruption said Joseph Lau, whom it described as managing director of McDonald's Restaurants (Hong Kong) Ltd., was found guilty in District Court of bribery and conspiracy to pervert the course of justice.

Lau was placed into custody pending sentencing May 6, the ICAC said in a statement.

McDonald's said in a faxed statement that Lau's employment was terminated, without providing further details.

"McDonald's doesn't tolerate criminal wrongdoing, or breaches of its code of conduct for employees," Liam Jeory, McDonald's vice president for corporate relations, said in the statement.

The ICAC said in late 2007 it charged Lau with taking kickbacks from a Thai food company from 2005 to 2007, as a reward for recommending and approving it as the corn supplier to McDonald's restaurants in Hong Kong.

Lau joined the company in 1983 and was appointed managing director for McDonald's Hong Kong operations in June 2004, according to an earlier statement from McDonald's.

In Hong Kong, McDonald's operates more than 200 restaurants, according to its Web site.

-By Jeffrey Ng, Dow Jones Newswires; 852-2802-7002; jeffrey.ng@dowjones.com

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04-15-09 0739ET
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