The Saga That Rocked Hong Kong's Legal Fraternity
"Friends turned on friends, as personal and institutional loyalties disintegrated"
The Warwick Reid case and its attendant issues remain one of the most intriguing sagas in the history of Hong Kong's criminal justice system. Kicking off in the late 1980s, these events touched many in the colony's tight-knit legal fraternity, exposing corruption at the highest levels.
Friends turned on friends as personal and institutional loyalties disintegrated, while the legal system's credibility came under threat. And all this on the eve of the return to Chinese sovereignty.
The ICAC deserves credit for the capture and conviction of Reid. But questions arose around the probity of the process in the spin-off case against legal big beast Kevin Egan.
I knew some of the players in this imbroglio. Yet, my research for this article revealed much more than I understood was taking place. The twists and turns are compelling, with machinations at many levels. There are no heroes in this tale, and deciding who is culpable for what unfolded has never been more challenging, if possible.
In producing this article, I've drawn on newspaper reports and other source material, including that made public by the University of Hong Kong. Dr. B.C. Connell conducted an analysis of the case from a criminal justice system perspective, which provided helpful insights. I’m happy to make corrections for any errors in the portrayal of events.
The Dingo Patrol
Warwick Reid landed in Hong Kong in 1975, aged 28. He joined the Attorney Generals Chambers, and soon developed a profile as an outstanding prosecutor having practised law in New Zealand. By the late 1980s, Reid was in charge of the Commercial Crime Unit in the prosecutions division. He also acted as the deputy director of public prosecutions.
Australian Kevin Egan was called to the bar in Queensland in 1972. He served as the director of public prosecutions in Papua New Guinea before arriving in Hong Kong to join the then Legal Department in the mid-1970s. Egan rose to become deputy principal Crown prosecutor. He earned renown for prosecuting cases for the Independent Commission Against Corruption (ICAC), an organisation that later arrested him.
Egan and Reid were close friends, regulars in the Foreign Correspondents Club (FCC), and well-known around town as part of the friendly 'larger than life' antipodean group. One wag labeled them the ‘dingo patrol’. Both enjoyed robust reputations with the law enforcement community, although Egan didn't always see eye to eye with the ICAC. Both also had close contacts with people in the media and private legal practice.
Reid Flees
By 1986, the ICAC was investigating allegations that Reid was taking bribes to curtail cases. That investigation involved a barrister Eddie Soh, a solicitor Oscar Lai and other suspects.
This was a tough case to crack for the ICAC because Reid was well conversant with anti-corruption law. It was later established that he received corrupt payments, which he laundered overseas in a complex system that used his mother's and in-laws' bank accounts. Lastly, no witness to Reid's corrupt acts was forthcoming.
For long-term embedded expats, Hong Kong is a village with all the attendant gossip and rumours of such a community. Thus, the investigators in ICAC must have feared a leak, given their regular interactions with the cohort of legal types in Reid's circle. An idle word over a beer or hint in conversation could have derailed the investigation.
The ICAC figured that Reid had disproportionate assets. In October 1989, they acted to arrest Reid, Soh and Lai. He was then served with a notice to explain his assets, released him on bail and ordered him to surrender his passport. The clock was running as Reid had until the end of December to account for his assets under a Section 14 notice. Knowing the law, Reid recognised he was in trouble.
On 21 December, Reid disappeared, along with Soh and Lai. Although, this didn't become public knowledge until 30 December, when comparisons were drawn with the infamous Godber case. By now, Reid was already on his way to the Philippines via Macau, and the Mainland.
Reid transited through Hong Kong on 17 January 1990, using a false passport to reach Manila. The story of that escape would envelop Egan.
In no time, ICAC dedicated all their efforts to locating Reid. By March 1990, he was found in Manila and returned to Hong Kong. On arrival, ICAC arrested him a second time, and soon Reid opted to confess.
Reid Cuts A Deal
Then, on 11 May 1990, the Attorney General granted Reid immunity from further prosecution if he pleaded guilty to having assets disproportionate to his emoluments. As part of this deal, Reid was duty-bound to give complete and truthful evidence in Court when required to do so or forfeit immunity. It was immediately apparent that the Crown wished to use Reid as a witness against others, requiring him to tell the truth and the whole truth.
As a legal practitioner, Reid could have had no illusions about the conditions imposed upon him. Indeed, some commentators suggested he'd helped negotiate the immunity deal, which was within his competence. Reid had become a super-grass, with all the risks that status posed.
On 6 July 1990, Reid pleaded guilty, received an eight-year sentence and was ordered to pay HK$12.4M. Besides, the Chief Justice recommended that Reid receive a three-year sentence reduction if he gave "full and truthful evidence for the prosecution when required."
Hence, Reid had another incentive to offer his full cooperation to the prosecution of others. In turn, this raised questions about inducements and the integrity of any evidence he gave.
Moreover, Reid was not sent into the prison system but detained in solitary isolation by the ICAC at their headquarters. Reid feared for his life, and the ICAC likely had similar concerns. He even sought to serve his sentence outside Hong Kong.
The Governor rejected this proposal for the obvious reasons. With the approach of the 1997 handover, Hong Kong could ill-afford to admit it was incapable of looking after the safety of prisoners. Moreover, the optics of special treatment to a corrupt former expat legal officer looked awful. Having Reid serve his sentence overseas was a political non-starter.
Egan’s Passport And A Gun
On 31 August 1990, ICAC arrested Egan at his home. The case against Egan arose from claims made by Reid that Egan had sought to assist his escape from Hong Kong.
At first, Egan had encouraged Reid to stay and fight the charges based on his innocence. But with Reid adamant about departing Hong Kong, Egan allegedly offered Reid his passport. Then, hearing that Reid feared he'd be killed, Egan suggested a firearm be obtained for protection.
Egan was a Hong Kong shooting team member, having represented the territory in overseas competitions. Reid told the ICAC that Egan suggested he get a shotgun from a Mr Fred Whitehouse, cut off the barrels and use this for self-defence. It later emerged that Whitehouse was absent from Hong Kong on leave at the time of these events.
Reid maintained that while on bail, he and Egan had a series of meetings to discuss his situation, usually at the FCC over drinks. By 17 December 1989, Reid stated he had in his possession Egan's passport, a pen gun and several rounds of ammunition. Reid said Egan supplied the pen gun, claiming it worked best at short range.
On 18 December 1989, Reid briefed Soh on the passport and gun. Soh told Reid to dump the items as a bad idea. Reid then disposed of the pen gun and ammunition. He claimed he attempted to insert his photograph into Egan's passport but gave up and flushed the document down a toilet. And by 21 December, Reid was gone.
Under video interview, Egan denied helping Reid. He went on to explain he'd lost his passport sometime in December. He reported the matter to Happy Valley Police Station on 2 January 1990. The next day he sought a replacement at the Australian Consulate. Egan admitted spending time with Reid after his initial arrest. Further, he confirmed that he knew Whitehouse.
On 3 September 1990, Reid guided ICAC officers to find a pen gun on the hillside next to Mount Nicholson Road on Hong Kong Island. Close by was also found four rounds of ammunition, although the calibre was incorrect for the weapon. The gun was identified as a typical homemade item produced in Afghanistan. ICAC knew that Egan had visited Afghanistan's border regions.
Egan faced four charges based on Reid's testimony, the missing passport and the weapon. These were assisting an offender to flee, possessing a firearm without a license, possessing a firearm with intent to endanger life, and misleading a police officer over the lost passport.
Egan’s Trial
Yet Egan's trial didn't start until 13 January 1993. Judicial reviews and other legal procedures delayed the case. In the process, Egan won a plea to face trial separate from Soh and others.
Then on the first day of the trial, in a stunning development, the Crown offered no evidence against Egan for assisting Reid to flee. Commentators jumped upon this action to suggest the Crown's case was weak. What happened next reinforced that sentiment.
On 26 January, Reid appeared in Court to give a watered-down version of the story he'd told the ICAC. Moreover, and significantly, he claimed he'd been very drunk during his encounters with Egan. With his mind clouded by drink, his recollection of events was erratic.
Reid even suggested he could have taken the pen gun, rounds of ammunition and passport from Egan's flat after a long drinking session. The Crown then asked that Egan be acquitted of the ‘possessing a firearm with intent to endanger life’ charge.
The prosecution case was further damaged when Reid admitted under cross-examination that he'd told many lies, including under oath. On 29 January, the Crown asked that the Court acquit Egan on the passport charge, given the doubts raised by Reid that he may have taken the document from Egan's flat. This left only one charge for the jury to consider: possessing the pen gun without a license.
On 2 February, the jury came back to find Egan not guilty. The Court then accepted the prosecution's request that Egan have his costs covered. Rarely does the prosecution make such a request.
The Fallout
The case against Egan had collapsed. He celebrated at the FCC while the ICAC and Legal Department went away to lick their wounds. Meanwhile, Reid was back in ICAC custody.
Immediately media speculation began. Would Reid’s immunity and sentence reduction be lost, plus why had he changed his story? There was also criticism of the cost of a flawed prosecution that hinged on a tainted witness.
Some media blame fell on the ICAC, accused of being over-zealous by only considering evidence that fitted their pre-conceived ideas. Commentators hinted that the Attorney Generals Chambers faced pressure to pursue the charges.
In response, the ICAC, through Jim Buckle, the Acting Director of Operations, refuted claims of pressure noting, "You can never be sure when you take a statement from a witness what they will say at trial." He's right.
Which begs the question, why Reid — a well-versed legal mind — did what he did? Had he gamed the system, using his vast experience to gain an advantage? Hard to say.
Some insights are given in extracts of Reid’s letters written while in ICAC custody, which are referenced in the work of Dr B.C. Connell. These letters were made available to the defense.
The letters make it clear that Reid saw the evidence against him as overwhelming. Reid is frank enough to ruminate on his super-grass status, and the possibility of a sentence reduction. The letters relate, that in Reid words, that he engaged in a “long battle” to get the deal he wanted, which included dealing with the surrender of his assets after he’d been sentenced.
This clever use of salami tactics in negotiation meant Reid retained a few useful cards in his hand. Such an approach suggests that despite all the stresses of isolation, the criminal charges and possible ruin, Reid is still in the long game. Dr. B.C. Connell’s insight on the letters and Reid’s actions is given in this dissertation.
The letters also speak of the psychological impact of isolation, him wanting to get into the witness box and then the trepidation at facing his former friends in Court.
Egan made no secret that he felt grudges held by some in ICAC drove the case forward. He'd before clashed with the ICAC over a Jockey Club case, and he surmised resentment lingered against him.
Yet, the ICAC had a case with corroborating evidence of the pen gun, Egan's missing passport and other details that gave credibility to Reid's initial version of events. However, legal types continue to argue back and forth about whether the case should have been brought.
Still, I'm drawn to a statement made by Mr Justice Godfrey when rejecting Reid's appeal to have a three-year reduction in his sentence. The wise judge affirmed, "Two reasonable persons may perfectly well come to different conclusions without either of them forfeiting his right to be regarded as reasonable." And at that, I'll let the matter rest.
Arguably, the system worked; due process was followed, evidence weighed, and a judgment was given. Nonetheless, the spectacle of such senior legal types before the courts was unedifying and damaging to Hong Kong's reputation.
Eventually, Reid transferred to the high-security Siu Lam Psychiatric Hospital to complete his sentence. Then dramatically, on 16 November 1994, he was flown from Siu Lam by Blackhawk helicopter to Kai Tak Airport and departed Hong Kong. Reid served less than four years in jail.
Egan moved into private practice. He was again arrested by ICAC and convicted in 2006 of disclosing the identity of a protected ICAC witness to a South China Morning Post reporter. He appealed and won after a stint in prison.
Egan died in 2018 after battling cancer, while Reid now resides in his native New Zealand. On his return to New Zealand, Reid is reported to have declined to enter the witness protection programme.
Meanwhile, the work of ICAC continues.
Friends turned on friends as personal and institutional loyalties disintegrated, while the legal system's credibility came under threat. And all this on the eve of the return to Chinese sovereignty.
The ICAC deserves credit for the capture and conviction of Reid. But questions arose around the probity of the process in the spin-off case against legal big beast Kevin Egan.
I knew some of the players in this imbroglio. Yet, my research for this article revealed much more than I understood was taking place. The twists and turns are compelling, with machinations at many levels. There are no heroes in this tale, and deciding who is culpable for what unfolded has never been more challenging, if possible.
In producing this article, I've drawn on newspaper reports and other source material, including that made public by the University of Hong Kong. Dr. B.C. Connell conducted an analysis of the case from a criminal justice system perspective, which provided helpful insights. I’m happy to make corrections for any errors in the portrayal of events.
The Dingo Patrol
Warwick Reid landed in Hong Kong in 1975, aged 28. He joined the Attorney Generals Chambers, and soon developed a profile as an outstanding prosecutor having practised law in New Zealand. By the late 1980s, Reid was in charge of the Commercial Crime Unit in the prosecutions division. He also acted as the deputy director of public prosecutions.
Australian Kevin Egan was called to the bar in Queensland in 1972. He served as the director of public prosecutions in Papua New Guinea before arriving in Hong Kong to join the then Legal Department in the mid-1970s. Egan rose to become deputy principal Crown prosecutor. He earned renown for prosecuting cases for the Independent Commission Against Corruption (ICAC), an organisation that later arrested him.
Egan and Reid were close friends, regulars in the Foreign Correspondents Club (FCC), and well-known around town as part of the friendly 'larger than life' antipodean group. One wag labeled them the ‘dingo patrol’. Both enjoyed robust reputations with the law enforcement community, although Egan didn't always see eye to eye with the ICAC. Both also had close contacts with people in the media and private legal practice.
Reid Flees
By 1986, the ICAC was investigating allegations that Reid was taking bribes to curtail cases. That investigation involved a barrister Eddie Soh, a solicitor Oscar Lai and other suspects.
This was a tough case to crack for the ICAC because Reid was well conversant with anti-corruption law. It was later established that he received corrupt payments, which he laundered overseas in a complex system that used his mother's and in-laws' bank accounts. Lastly, no witness to Reid's corrupt acts was forthcoming.
For long-term embedded expats, Hong Kong is a village with all the attendant gossip and rumours of such a community. Thus, the investigators in ICAC must have feared a leak, given their regular interactions with the cohort of legal types in Reid's circle. An idle word over a beer or hint in conversation could have derailed the investigation.
The ICAC figured that Reid had disproportionate assets. In October 1989, they acted to arrest Reid, Soh and Lai. He was then served with a notice to explain his assets, released him on bail and ordered him to surrender his passport. The clock was running as Reid had until the end of December to account for his assets under a Section 14 notice. Knowing the law, Reid recognised he was in trouble.
On 21 December, Reid disappeared, along with Soh and Lai. Although, this didn't become public knowledge until 30 December, when comparisons were drawn with the infamous Godber case. By now, Reid was already on his way to the Philippines via Macau, and the Mainland.
Reid transited through Hong Kong on 17 January 1990, using a false passport to reach Manila. The story of that escape would envelop Egan.
In no time, ICAC dedicated all their efforts to locating Reid. By March 1990, he was found in Manila and returned to Hong Kong. On arrival, ICAC arrested him a second time, and soon Reid opted to confess.
Reid Cuts A Deal
Then, on 11 May 1990, the Attorney General granted Reid immunity from further prosecution if he pleaded guilty to having assets disproportionate to his emoluments. As part of this deal, Reid was duty-bound to give complete and truthful evidence in Court when required to do so or forfeit immunity. It was immediately apparent that the Crown wished to use Reid as a witness against others, requiring him to tell the truth and the whole truth.
As a legal practitioner, Reid could have had no illusions about the conditions imposed upon him. Indeed, some commentators suggested he'd helped negotiate the immunity deal, which was within his competence. Reid had become a super-grass, with all the risks that status posed.
On 6 July 1990, Reid pleaded guilty, received an eight-year sentence and was ordered to pay HK$12.4M. Besides, the Chief Justice recommended that Reid receive a three-year sentence reduction if he gave "full and truthful evidence for the prosecution when required."
Hence, Reid had another incentive to offer his full cooperation to the prosecution of others. In turn, this raised questions about inducements and the integrity of any evidence he gave.
Moreover, Reid was not sent into the prison system but detained in solitary isolation by the ICAC at their headquarters. Reid feared for his life, and the ICAC likely had similar concerns. He even sought to serve his sentence outside Hong Kong.
The Governor rejected this proposal for the obvious reasons. With the approach of the 1997 handover, Hong Kong could ill-afford to admit it was incapable of looking after the safety of prisoners. Moreover, the optics of special treatment to a corrupt former expat legal officer looked awful. Having Reid serve his sentence overseas was a political non-starter.
Egan’s Passport And A Gun
On 31 August 1990, ICAC arrested Egan at his home. The case against Egan arose from claims made by Reid that Egan had sought to assist his escape from Hong Kong.
At first, Egan had encouraged Reid to stay and fight the charges based on his innocence. But with Reid adamant about departing Hong Kong, Egan allegedly offered Reid his passport. Then, hearing that Reid feared he'd be killed, Egan suggested a firearm be obtained for protection.
Egan was a Hong Kong shooting team member, having represented the territory in overseas competitions. Reid told the ICAC that Egan suggested he get a shotgun from a Mr Fred Whitehouse, cut off the barrels and use this for self-defence. It later emerged that Whitehouse was absent from Hong Kong on leave at the time of these events.
Reid maintained that while on bail, he and Egan had a series of meetings to discuss his situation, usually at the FCC over drinks. By 17 December 1989, Reid stated he had in his possession Egan's passport, a pen gun and several rounds of ammunition. Reid said Egan supplied the pen gun, claiming it worked best at short range.
On 18 December 1989, Reid briefed Soh on the passport and gun. Soh told Reid to dump the items as a bad idea. Reid then disposed of the pen gun and ammunition. He claimed he attempted to insert his photograph into Egan's passport but gave up and flushed the document down a toilet. And by 21 December, Reid was gone.
Under video interview, Egan denied helping Reid. He went on to explain he'd lost his passport sometime in December. He reported the matter to Happy Valley Police Station on 2 January 1990. The next day he sought a replacement at the Australian Consulate. Egan admitted spending time with Reid after his initial arrest. Further, he confirmed that he knew Whitehouse.
On 3 September 1990, Reid guided ICAC officers to find a pen gun on the hillside next to Mount Nicholson Road on Hong Kong Island. Close by was also found four rounds of ammunition, although the calibre was incorrect for the weapon. The gun was identified as a typical homemade item produced in Afghanistan. ICAC knew that Egan had visited Afghanistan's border regions.
Egan faced four charges based on Reid's testimony, the missing passport and the weapon. These were assisting an offender to flee, possessing a firearm without a license, possessing a firearm with intent to endanger life, and misleading a police officer over the lost passport.
Egan’s Trial
Yet Egan's trial didn't start until 13 January 1993. Judicial reviews and other legal procedures delayed the case. In the process, Egan won a plea to face trial separate from Soh and others.
Then on the first day of the trial, in a stunning development, the Crown offered no evidence against Egan for assisting Reid to flee. Commentators jumped upon this action to suggest the Crown's case was weak. What happened next reinforced that sentiment.
On 26 January, Reid appeared in Court to give a watered-down version of the story he'd told the ICAC. Moreover, and significantly, he claimed he'd been very drunk during his encounters with Egan. With his mind clouded by drink, his recollection of events was erratic.
Reid even suggested he could have taken the pen gun, rounds of ammunition and passport from Egan's flat after a long drinking session. The Crown then asked that Egan be acquitted of the ‘possessing a firearm with intent to endanger life’ charge.
The prosecution case was further damaged when Reid admitted under cross-examination that he'd told many lies, including under oath. On 29 January, the Crown asked that the Court acquit Egan on the passport charge, given the doubts raised by Reid that he may have taken the document from Egan's flat. This left only one charge for the jury to consider: possessing the pen gun without a license.
On 2 February, the jury came back to find Egan not guilty. The Court then accepted the prosecution's request that Egan have his costs covered. Rarely does the prosecution make such a request.
The Fallout
The case against Egan had collapsed. He celebrated at the FCC while the ICAC and Legal Department went away to lick their wounds. Meanwhile, Reid was back in ICAC custody.
Immediately media speculation began. Would Reid’s immunity and sentence reduction be lost, plus why had he changed his story? There was also criticism of the cost of a flawed prosecution that hinged on a tainted witness.
Some media blame fell on the ICAC, accused of being over-zealous by only considering evidence that fitted their pre-conceived ideas. Commentators hinted that the Attorney Generals Chambers faced pressure to pursue the charges.
In response, the ICAC, through Jim Buckle, the Acting Director of Operations, refuted claims of pressure noting, "You can never be sure when you take a statement from a witness what they will say at trial." He's right.
Which begs the question, why Reid — a well-versed legal mind — did what he did? Had he gamed the system, using his vast experience to gain an advantage? Hard to say.
Some insights are given in extracts of Reid’s letters written while in ICAC custody, which are referenced in the work of Dr B.C. Connell. These letters were made available to the defense.
The letters make it clear that Reid saw the evidence against him as overwhelming. Reid is frank enough to ruminate on his super-grass status, and the possibility of a sentence reduction. The letters relate, that in Reid words, that he engaged in a “long battle” to get the deal he wanted, which included dealing with the surrender of his assets after he’d been sentenced.
This clever use of salami tactics in negotiation meant Reid retained a few useful cards in his hand. Such an approach suggests that despite all the stresses of isolation, the criminal charges and possible ruin, Reid is still in the long game. Dr. B.C. Connell’s insight on the letters and Reid’s actions is given in this dissertation.
The letters also speak of the psychological impact of isolation, him wanting to get into the witness box and then the trepidation at facing his former friends in Court.
Egan made no secret that he felt grudges held by some in ICAC drove the case forward. He'd before clashed with the ICAC over a Jockey Club case, and he surmised resentment lingered against him.
Yet, the ICAC had a case with corroborating evidence of the pen gun, Egan's missing passport and other details that gave credibility to Reid's initial version of events. However, legal types continue to argue back and forth about whether the case should have been brought.
Still, I'm drawn to a statement made by Mr Justice Godfrey when rejecting Reid's appeal to have a three-year reduction in his sentence. The wise judge affirmed, "Two reasonable persons may perfectly well come to different conclusions without either of them forfeiting his right to be regarded as reasonable." And at that, I'll let the matter rest.
Arguably, the system worked; due process was followed, evidence weighed, and a judgment was given. Nonetheless, the spectacle of such senior legal types before the courts was unedifying and damaging to Hong Kong's reputation.
Eventually, Reid transferred to the high-security Siu Lam Psychiatric Hospital to complete his sentence. Then dramatically, on 16 November 1994, he was flown from Siu Lam by Blackhawk helicopter to Kai Tak Airport and departed Hong Kong. Reid served less than four years in jail.
Egan moved into private practice. He was again arrested by ICAC and convicted in 2006 of disclosing the identity of a protected ICAC witness to a South China Morning Post reporter. He appealed and won after a stint in prison.
Egan died in 2018 after battling cancer, while Reid now resides in his native New Zealand. On his return to New Zealand, Reid is reported to have declined to enter the witness protection programme.
Meanwhile, the work of ICAC continues.
August 2023
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