Two senior employees at Hong Kong listed Natural Dairy Holdings have been been found guilty of money laundering.

Two senior employees at Hong Kong-listed Natural Dairy Holdings have been found guilty of money laundering.

Solicitor Wu Wing-kit and a former wife of a director, Ye Fang, laundered more than HK$200 million, the Independent Commission Against Corruption (ICAC) said.

Between December 2009 and February 2010, Natural Dairy - formerly known as China Jin Hui Mining Corporation - had raised HK$790 million ($102 million) to acquire 22 dairy farms from the Crafar family in New Zealand for NZ$375 million ($314.6 million).

However, Prime Minister John Key at the time raised "concerns" about the sale of land to overseas interests and in December 2010, acting on the recommendation of the Overseas Investment Office, the government decided not to approve the application.

The deal prompted a complaint of fraud to be filed to the Stock Exchange of Hong Kong.

Ye's husband, Chen Keen, and two other officials from Natural Dairy, were charged with conspiracy to defraud over the purchase of New Zealand-based UBNZ Assets Holdings. Chen was also charged with money laundering.

The ICAC said that of the HK$790 million, HK$693 million was remitted to a lawyer representative for National Dairy Holdings. Of that amount NZ$51.6 million (HK$334 million) was paid to the company that was to sell the farms.

A representative of that company then transferred HK$73.3 million back to a National Dairy representative, who wrote a cheque for HK$68.95 million to Wu's law firm, Fred Kan & Co. Wu then deposited the money into Ye's account.

The court also previously heard that Ye had dealt with the money passed to her by Wu, plus a further HK$161 million, from March 2010 to October 2011.

She deposited all the funds into her bank account.

Judge Eddie Yip Chor-man specifically criticised Wu's inaction in respect of the large amount of funds. The judge said this went beyond professional negligence.

"He did not make any inquiries at all," the judge said.

Yip adjourned sentencing to August 29, when he will hear mitigation. He remanded both Ye and Wu in custody.

Shares in Natural Dairy Holdings have been suspended from trading in Hong Kong since September 2010 despite a resumption request last year.

According to its website, most of the company's stores are in mainland China.