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Jul 2024Ex-manager of FEHD contractor charged by ICAC for extorting $38,000 in wages from cleaning workers by deceitThe ICAC today (July 23) charged a former manager of a cleaning service contractor of the Food and Environmental Hygiene Department (FEHD) for allegedly deceiving three subordinate cleaning workers into returning a wage difference totalling over $38,000 in a span of nearly two years, by falsely representing to them that the employer had miscalculated their wages.Choy Wai-hong, 50, former contract manager of Sparkle Environmental Services Limited (Sparkle), faces three counts of fraud, contrary to section 16A of the Theft Ordinance. He was released on ICAC bail, pending his appearance at the Kwun Tong Magistrates’ Courts on Thursday (July 25) for plea.At the material time, the defendant was a contract manager of Sparkle, a cleaning service contractor of the FEHD. He was responsible for supervising the company’s foremen and cleaning workers posted to Sai Kung District, and handling relevant matters of recruitment and employment contracts.The offences took place between August 2020 and July 2022. The defendant, without Sparkle’s authorisation, allegedly made false representations to the three cleaning workers concerned that they were employed and paid as casual workers. It is alleged that subsequently, the defendant falsely represented to the three workers that Sparkle had miscalculated their wages, and with intent to defraud, induced the trio to return part of their wages, totalling over $38,000, to the defendant.The ICAC investigation arose from a corruption complaint in relation to workers’ wages. Enquiries revealed that the trio were in fact Sparkle’s full-time employees who were entitled to higher pay rates, but the defendant allegedly made false representations to them that they were employed as casual cleaning workers at a daily wage of either $420 or $450 only. Meanwhile, the defendant had never returned to Sparkle the wages which he defrauded out of the trio.The FEHD and Sparkle rendered full assistance to the ICAC during its investigation into the case. 17
Jul 2024Former insurance employees charged by ICAC for $4.25m fraud and $2.3m money laundering involving dummy agents and false policy applicationsThe ICAC today (July 17) charged five former employees of an insurance company in two separate cases for their alleged involvement in a dummy agent scam as well as providing false information in insurance policy applications respectively to defraud the company of a total of $4.25 million in commissions and other payments. Three of the dummy insurance agents were also charged for allegedly handling over $2.3 million in crime proceeds.In the first case, Chau Yui-kwan, 34, former assistant unit manager of China Taiping Life Insurance (Hong Kong) Company Limited (China Taiping), faces 18 counts of fraud, contrary to Section 16A(1) of the Theft Ordinance. Co-defendants, Choi Pui-ka, 32; Chang Kiu-sum, 32; and Sit Siu-hang, 30, all former business managers of China Taiping, each faces one count of dealing with property known or reasonably believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organised and Serious Crimes Ordinance. The four defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Friday (July 19) for mention. The case will later be transferred to the District Court for plea.At the material time, Chau was the former assistant unit manager of China Taiping and the upline manager of the three co-defendants as well as another insurance agent. China Taiping required all its agents to explain the terms and conditions of relevant insurance policies to their clients in person when selling an insurance product. The company prohibited its agents from providing any false information about the policyholder and the identity of the handling agent. China Taiping would issue commissions and other payments to the handling agent upon the approval of a policy application and receipt of the premium.The offences took place between February 2021 and October 2022. The 18 fraud charges allege that Chau deceived China Taiping by falsely representing to the latter that Choi, Chang, Sit and another insurance agent were the handling agents of those 18 insurance policies, and causing China Taiping to underwrite and issue the insurance policies and to pay commissions and other payments in relation to them.ICAC enquiries revealed that China Taiping had released a total of about $3.6 million of commissions and other payments to Choi, Chang, Sit and the said insurance agent in relation to the above-mentioned 18 insurance policies. A large proportion of the said payments were eventually received by Chau.Another three charges allege that Choi, Chang and Sit, knowing or having reasonable grounds to believe that a total of over $2.3million in their three personal bank accounts, in whole or in part, directly or indirectly represented any person’s proceeds of an indictable offence, dealt with the money.In a separate case, Lee Hon-yin, 28, former China Taiping insurance agent, faces two counts of fraud, contrary to section 16A(1) of the Theft Ordinance. Chau faces one count of forgery, contrary to Section 71 of the Crimes Ordinance. The duo were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Friday (July 19) for plea.In July 2021, China Taiping received two insurance policy applications which were purportedly taken out by a client and the insurance policies were sold by Lee. It is alleged that Lee had falsely represented to China Taiping that the applications were genuinely taken out by the client, causing China Taiping to approve the applications and release the commissions and other payments of over $650,000 to him. ICAC enquiries revealed that the client did not apply for the above-mentioned insurance policies, nor did she pay premiums for the policies.Meanwhile, Chau had allegedly forged the signatures of a client and relevant persons on a document for transferring the rights and interests of an insurance policy, inducing China Taiping to believe that the application was submitted by a client.China Taiping has rendered full assistance to the ICAC during its investigation into the cases. 11
Jul 2024Former apparel manufacturer employee charged by ICAC for using false quotations and receipts to swindle $480,000A former Executive Assistant of an apparel manufacturer was charged by the ICAC today (July 11) for allegedly using false quotations and receipts in relation to repair works of her employer’s properties to swindle approximately $480,000.Rachel Chong Shui-kwan, 32, former Executive Assistant of Sterling and Grant Limited (SGL), faces nine charges of agent using document with intent to deceive her principal, contrary to Section 9(3) of the Prevention of Bribery Ordinance. She was released on ICAC bail, pending her appearance at the Eastern Magistrates’ Courts tomorrow (July 12) for mention.The investigation arose from a corruption complaint. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charges be laid against the defendant. As an Executive Assistant of SLG, the defendant, apart from handling daily administrative work of SGL, was also responsible for handling leasing matters, including renovation and repair works, of two residential units owned by her employer.Before the commencement of each works order, the defendant was required to seek approval from her employer and provide relevant quotation for the latter’s confirmation. After completion of the works, the defendant had to submit the quotation or receipt issued by the responsible contractor to the company for processing payments.Between July 2020 and January 2021, the defendant allegedly submitted false quotations and receipts to SGL on nine occasions, misleading the company that the above documents were issued by a decoration contractor and that the relevant works were completed. As a result, SGL paid a total of around $480,000 to the contractor for settling the works payments.The ICAC enquiries revealed that the abovementioned contractor had never issued the said quotations and receipts. A large proportion of the said payments were eventually deposited into the defendant’s personal bank account.SGL rendered full assistance to the ICAC during its investigation into the case. 08
Jul 2024Financial consultant charged by ICAC in JPY400m investment fraud case pleads guiltyAn ICAC corruption investigation into bank officers earlier revealed that four people had conspired with others to deceive Japanese investors into investing over JPY400 million (about HK$28.4 million) in various companies which took part in investment projects in Africa by falsely representing that those companies’ bank accounts held asset totalling over HK$37 billion, and by using false bank documents. A self-employed financial consultant today (July 8) pleaded guilty to conspiracy to defraud at the District Court.Law Man-fai, 50, self-employed financial consultant, pleaded guilty to three counts of conspiracy to defraud, contrary to the Common Law. Another similar charge against him was left on file at the District Court. Deputy Judge Ms May Chung Ming-sun adjourned the case to July 15 for mention. Law was granted bail.Two co-defendants, Woo Man-ho, 36; and Chan Tak-ching, 37, both former relationship managers of Standard Chartered Bank (Hong Kong) Limited (Standard Chartered Bank), earlier pleaded guilty to a total of four counts of conspiracy to defraud. They were granted bail until August 22 for sentence.The court heard that at the material time, Law was a self-employed financial consultant, while Woo and Chan were relationship managers of Standard Chartered Bank respectively working at its business banking department and priority banking department. The bank would issue documents to confirm the balance of a client’s account held with the bank upon request, but Woo and Chan were not authorised to sign and issue those documents.Between January 2015 and September 2016, Law, Woo and Chan had conspired with another then relationship manager of Standard Chartered Bank and four foreign nationals to defraud various Japanese investors to invest in ADF Capital Limited (ADF) and a number of companies by using false proof of fund letters and corporate refund promissory notes (CRPNs) signed by Woo and Chan, and purportedly issued by Standard Chartered Bank.The four foreign nationals involved were two shareholders-cum-directors of ADF, respectively a Zambian man and a Korean man; a Thai man who was Chan’s client; and a Japanese woman who was the chief executive officer of a company.Law admitted that he had conspired with Woo, Chan and three of the foreign nationals to falsely represent that Standard Chartered Bank was the guarantor of ADF which undertook to pay the relevant investors by issuing eight false CRPNs.Four of the CRPNs involved promised returns totalling US$7.2 million (over HK$56 million). As a result of the false representations, various Japanese investors were deceived into making investments totalling at least JPY400 million (about HK$28.4 million) to ADF and various companies involved in this case. The remaining four CRPNs involved false representations to a certain company that Standard Chartered Bank was the guarantor of ADF which undertook to pay US$50 million (over HK$390 million) for the CRPNs.Woo and Chan earlier admitted their involvements in the scam, and their issuance of false proof of fund letters which falsely represented that the Zambian man’s company had funds of US$1.5 billion (about HK$11.6 billion) available for investments in Africa, and that the Thai man had asset of 3.3 billion euros (about HK$25.5 billion) in the bank account held with Standard Chartered Bank.The ICAC enquiries revealed that Standard Chartered Bank had never held the abovementioned asset on behalf of the Thai man, while the Zambian man’s company had never held any bank account with the bank.Co-defendant Leung Ho-yin, 38, former relationship manager of Standard Chartered Bank, pleaded not guilty to two counts of conspiracy to defraud. Another co-defendant Catherine Kum Kit-ching, 55, manager of ADF, pleaded not guilty to one count of conspiracy to launder crime proceeds. The duo will appear again at the District Court on July 11 for mention.Standard Chartered Bank had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Janice Chan. 04
Jul 2024Funeral agent charged by ICAC guilty of bribery over servicesA funeral agent, earlier charged by the ICAC, was today (July 4) convicted at the Kowloon City Magistrates’ Courts of offering a bribe of $3,000 to a fellow church member of a deceased elderly person for securing the business of the latter’s after-death arrangements.Chak Kwok-hung, 43, sales agent of Endless Love Care Service Company Limited (Endless Love), was found guilty of one count of offering an advantage to an agent, contrary to section 9(2)(a) of the Prevention of Bribery Ordinance.In convicting the defendant, Deputy Magistrate Mr Jeffrey Lai said that Chak’s intention to commit the offence was obvious and he regarded such illegal behaviour as a “common practice” in his trade. He ordered the defendant to be remanded in the custody of the Correctional Services Department, and adjourned the case to July 18 for sentence, pending the defendant’s background report and mitigation.The court heard that on March 6, 2023, an elderly person residing in a private residential care home passed away. Prior to his death, the elderly person had given several ten thousand dollars to two fellow church members and entrusted them to take care of his funeral arrangements. Upon learning that unbeknownst to them, Endless Love had taken up the funeral arrangements of the deceased on the same day of his passing, one of the church members visited Endless Love to make enquiries.When receiving the church member at Endless Love, the defendant offered $3,000 as a rebate to the latter for appointing Endless Love to arrange the funeral services for the deceased. The church member rejected the defendant’s offer and left.The prosecution was today represented by prosecuting counsel Eddie Sean, assisted by ICAC officer Allan Fong.
Jul 2024Ex-manager of FEHD contractor charged by ICAC for extorting $38,000 in wages from cleaning workers by deceitThe ICAC today (July 23) charged a former manager of a cleaning service contractor of the Food and Environmental Hygiene Department (FEHD) for allegedly deceiving three subordinate cleaning workers into returning a wage difference totalling over $38,000 in a span of nearly two years, by falsely representing to them that the employer had miscalculated their wages.Choy Wai-hong, 50, former contract manager of Sparkle Environmental Services Limited (Sparkle), faces three counts of fraud, contrary to section 16A of the Theft Ordinance. He was released on ICAC bail, pending his appearance at the Kwun Tong Magistrates’ Courts on Thursday (July 25) for plea.At the material time, the defendant was a contract manager of Sparkle, a cleaning service contractor of the FEHD. He was responsible for supervising the company’s foremen and cleaning workers posted to Sai Kung District, and handling relevant matters of recruitment and employment contracts.The offences took place between August 2020 and July 2022. The defendant, without Sparkle’s authorisation, allegedly made false representations to the three cleaning workers concerned that they were employed and paid as casual workers. It is alleged that subsequently, the defendant falsely represented to the three workers that Sparkle had miscalculated their wages, and with intent to defraud, induced the trio to return part of their wages, totalling over $38,000, to the defendant.The ICAC investigation arose from a corruption complaint in relation to workers’ wages. Enquiries revealed that the trio were in fact Sparkle’s full-time employees who were entitled to higher pay rates, but the defendant allegedly made false representations to them that they were employed as casual cleaning workers at a daily wage of either $420 or $450 only. Meanwhile, the defendant had never returned to Sparkle the wages which he defrauded out of the trio.The FEHD and Sparkle rendered full assistance to the ICAC during its investigation into the case. 17
Jul 2024Former insurance employees charged by ICAC for $4.25m fraud and $2.3m money laundering involving dummy agents and false policy applicationsThe ICAC today (July 17) charged five former employees of an insurance company in two separate cases for their alleged involvement in a dummy agent scam as well as providing false information in insurance policy applications respectively to defraud the company of a total of $4.25 million in commissions and other payments. Three of the dummy insurance agents were also charged for allegedly handling over $2.3 million in crime proceeds.In the first case, Chau Yui-kwan, 34, former assistant unit manager of China Taiping Life Insurance (Hong Kong) Company Limited (China Taiping), faces 18 counts of fraud, contrary to Section 16A(1) of the Theft Ordinance. Co-defendants, Choi Pui-ka, 32; Chang Kiu-sum, 32; and Sit Siu-hang, 30, all former business managers of China Taiping, each faces one count of dealing with property known or reasonably believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organised and Serious Crimes Ordinance. The four defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Friday (July 19) for mention. The case will later be transferred to the District Court for plea.At the material time, Chau was the former assistant unit manager of China Taiping and the upline manager of the three co-defendants as well as another insurance agent. China Taiping required all its agents to explain the terms and conditions of relevant insurance policies to their clients in person when selling an insurance product. The company prohibited its agents from providing any false information about the policyholder and the identity of the handling agent. China Taiping would issue commissions and other payments to the handling agent upon the approval of a policy application and receipt of the premium.The offences took place between February 2021 and October 2022. The 18 fraud charges allege that Chau deceived China Taiping by falsely representing to the latter that Choi, Chang, Sit and another insurance agent were the handling agents of those 18 insurance policies, and causing China Taiping to underwrite and issue the insurance policies and to pay commissions and other payments in relation to them.ICAC enquiries revealed that China Taiping had released a total of about $3.6 million of commissions and other payments to Choi, Chang, Sit and the said insurance agent in relation to the above-mentioned 18 insurance policies. A large proportion of the said payments were eventually received by Chau.Another three charges allege that Choi, Chang and Sit, knowing or having reasonable grounds to believe that a total of over $2.3million in their three personal bank accounts, in whole or in part, directly or indirectly represented any person’s proceeds of an indictable offence, dealt with the money.In a separate case, Lee Hon-yin, 28, former China Taiping insurance agent, faces two counts of fraud, contrary to section 16A(1) of the Theft Ordinance. Chau faces one count of forgery, contrary to Section 71 of the Crimes Ordinance. The duo were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Friday (July 19) for plea.In July 2021, China Taiping received two insurance policy applications which were purportedly taken out by a client and the insurance policies were sold by Lee. It is alleged that Lee had falsely represented to China Taiping that the applications were genuinely taken out by the client, causing China Taiping to approve the applications and release the commissions and other payments of over $650,000 to him. ICAC enquiries revealed that the client did not apply for the above-mentioned insurance policies, nor did she pay premiums for the policies.Meanwhile, Chau had allegedly forged the signatures of a client and relevant persons on a document for transferring the rights and interests of an insurance policy, inducing China Taiping to believe that the application was submitted by a client.China Taiping has rendered full assistance to the ICAC during its investigation into the cases. 11
Jul 2024Former apparel manufacturer employee charged by ICAC for using false quotations and receipts to swindle $480,000A former Executive Assistant of an apparel manufacturer was charged by the ICAC today (July 11) for allegedly using false quotations and receipts in relation to repair works of her employer’s properties to swindle approximately $480,000.Rachel Chong Shui-kwan, 32, former Executive Assistant of Sterling and Grant Limited (SGL), faces nine charges of agent using document with intent to deceive her principal, contrary to Section 9(3) of the Prevention of Bribery Ordinance. She was released on ICAC bail, pending her appearance at the Eastern Magistrates’ Courts tomorrow (July 12) for mention.The investigation arose from a corruption complaint. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charges be laid against the defendant. As an Executive Assistant of SLG, the defendant, apart from handling daily administrative work of SGL, was also responsible for handling leasing matters, including renovation and repair works, of two residential units owned by her employer.Before the commencement of each works order, the defendant was required to seek approval from her employer and provide relevant quotation for the latter’s confirmation. After completion of the works, the defendant had to submit the quotation or receipt issued by the responsible contractor to the company for processing payments.Between July 2020 and January 2021, the defendant allegedly submitted false quotations and receipts to SGL on nine occasions, misleading the company that the above documents were issued by a decoration contractor and that the relevant works were completed. As a result, SGL paid a total of around $480,000 to the contractor for settling the works payments.The ICAC enquiries revealed that the abovementioned contractor had never issued the said quotations and receipts. A large proportion of the said payments were eventually deposited into the defendant’s personal bank account.SGL rendered full assistance to the ICAC during its investigation into the case. 08
Jul 2024Financial consultant charged by ICAC in JPY400m investment fraud case pleads guiltyAn ICAC corruption investigation into bank officers earlier revealed that four people had conspired with others to deceive Japanese investors into investing over JPY400 million (about HK$28.4 million) in various companies which took part in investment projects in Africa by falsely representing that those companies’ bank accounts held asset totalling over HK$37 billion, and by using false bank documents. A self-employed financial consultant today (July 8) pleaded guilty to conspiracy to defraud at the District Court.Law Man-fai, 50, self-employed financial consultant, pleaded guilty to three counts of conspiracy to defraud, contrary to the Common Law. Another similar charge against him was left on file at the District Court. Deputy Judge Ms May Chung Ming-sun adjourned the case to July 15 for mention. Law was granted bail.Two co-defendants, Woo Man-ho, 36; and Chan Tak-ching, 37, both former relationship managers of Standard Chartered Bank (Hong Kong) Limited (Standard Chartered Bank), earlier pleaded guilty to a total of four counts of conspiracy to defraud. They were granted bail until August 22 for sentence.The court heard that at the material time, Law was a self-employed financial consultant, while Woo and Chan were relationship managers of Standard Chartered Bank respectively working at its business banking department and priority banking department. The bank would issue documents to confirm the balance of a client’s account held with the bank upon request, but Woo and Chan were not authorised to sign and issue those documents.Between January 2015 and September 2016, Law, Woo and Chan had conspired with another then relationship manager of Standard Chartered Bank and four foreign nationals to defraud various Japanese investors to invest in ADF Capital Limited (ADF) and a number of companies by using false proof of fund letters and corporate refund promissory notes (CRPNs) signed by Woo and Chan, and purportedly issued by Standard Chartered Bank.The four foreign nationals involved were two shareholders-cum-directors of ADF, respectively a Zambian man and a Korean man; a Thai man who was Chan’s client; and a Japanese woman who was the chief executive officer of a company.Law admitted that he had conspired with Woo, Chan and three of the foreign nationals to falsely represent that Standard Chartered Bank was the guarantor of ADF which undertook to pay the relevant investors by issuing eight false CRPNs.Four of the CRPNs involved promised returns totalling US$7.2 million (over HK$56 million). As a result of the false representations, various Japanese investors were deceived into making investments totalling at least JPY400 million (about HK$28.4 million) to ADF and various companies involved in this case. The remaining four CRPNs involved false representations to a certain company that Standard Chartered Bank was the guarantor of ADF which undertook to pay US$50 million (over HK$390 million) for the CRPNs.Woo and Chan earlier admitted their involvements in the scam, and their issuance of false proof of fund letters which falsely represented that the Zambian man’s company had funds of US$1.5 billion (about HK$11.6 billion) available for investments in Africa, and that the Thai man had asset of 3.3 billion euros (about HK$25.5 billion) in the bank account held with Standard Chartered Bank.The ICAC enquiries revealed that Standard Chartered Bank had never held the abovementioned asset on behalf of the Thai man, while the Zambian man’s company had never held any bank account with the bank.Co-defendant Leung Ho-yin, 38, former relationship manager of Standard Chartered Bank, pleaded not guilty to two counts of conspiracy to defraud. Another co-defendant Catherine Kum Kit-ching, 55, manager of ADF, pleaded not guilty to one count of conspiracy to launder crime proceeds. The duo will appear again at the District Court on July 11 for mention.Standard Chartered Bank had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Janice Chan. 04
Jul 2024Funeral agent charged by ICAC guilty of bribery over servicesA funeral agent, earlier charged by the ICAC, was today (July 4) convicted at the Kowloon City Magistrates’ Courts of offering a bribe of $3,000 to a fellow church member of a deceased elderly person for securing the business of the latter’s after-death arrangements.Chak Kwok-hung, 43, sales agent of Endless Love Care Service Company Limited (Endless Love), was found guilty of one count of offering an advantage to an agent, contrary to section 9(2)(a) of the Prevention of Bribery Ordinance.In convicting the defendant, Deputy Magistrate Mr Jeffrey Lai said that Chak’s intention to commit the offence was obvious and he regarded such illegal behaviour as a “common practice” in his trade. He ordered the defendant to be remanded in the custody of the Correctional Services Department, and adjourned the case to July 18 for sentence, pending the defendant’s background report and mitigation.The court heard that on March 6, 2023, an elderly person residing in a private residential care home passed away. Prior to his death, the elderly person had given several ten thousand dollars to two fellow church members and entrusted them to take care of his funeral arrangements. Upon learning that unbeknownst to them, Endless Love had taken up the funeral arrangements of the deceased on the same day of his passing, one of the church members visited Endless Love to make enquiries.When receiving the church member at Endless Love, the defendant offered $3,000 as a rebate to the latter for appointing Endless Love to arrange the funeral services for the deceased. The church member rejected the defendant’s offer and left.The prosecution was today represented by prosecuting counsel Eddie Sean, assisted by ICAC officer Allan Fong.