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Feb 2025Four charged by ICAC with $230,000 bribery over $25m renovation projects of two Japanese chain storesA then employee of a design consultancy and three others were charged by the ICAC today (February 12) for allegedly conspiring together for the employee to accept bribes of over $230,000 for assisting two works contractors to secure two renovation projects of Japanese chain stores involving project fees totalling over $25 million.The four defendants are Pian Pang Ka-shin, 41, then marketing executive of K&C Creation Limited (KCL); Li Po-wah, 34, director cum shareholder of RNK Design and Engineering Company Limited (RNK); Pang Wai-yin, 50, then site supervisor of RNK; and Yung Chor-chi, 46, operator of Flaming Engineering Company Limited (FEL).They jointly face one count of conspiracy for an agent to accept an advantage, contrary to sections 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance. The case is set for plea at the Kowloon City Magistrates’ Courts tomorrow (February 13).KCL is a design consultancy. In 2019, it was awarded two renovation projects respectively concerning a branch of drugstore chain “Tokyo Lifestyle” in Kowloon and the store of supermarket chain “Donki Japan” in Macau.At the material time, Pang Ka-shin was a marketing executive of KCL responsible for co-ordinating contractors and arranging tender exercises. For the two renovation projects concerned, she was responsible for submitting quotations and tenders to RNK or Donki for selection. RNK and FEL were both works contractors respectively set up by Li in Hong Kong and Yung in Macau.The charge alleges that between June 2019 and January 2022, the four defendants had conspired together for Pang Ka-shin to accept bribes of over $230,000 from the three co-defendants for assisting the trio to secure the two renovation projects managed by KCL. Renovation fees of the two projects amounted to over $25 million in total.RNK and Donki rendered full assistance to the ICAC during its investigation into the case. 11
Feb 2025Main culprit in $52m dummy agents commissions fraud case charged by ICAC jailed for 46 monthsAn ICAC corruption investigation earlier revealed a dummy insurance agents’ scheme where individuals had conspired together to defraud two insurers of commissions totalling about $52 million by making false representations about the handling agents of 478 insurance policies and to launder crime proceeds. A then branch manager of an insurer, who recruited various individuals to take part in the plot, was today (February 11) sentenced to 46 months’ imprisonment at the District Court while 10 dummy insurance agents received jail terms ranging from 11 to 22 months.Lo Yin-wa, 32, then branch manager of FWD Life Insurance Company (Bermuda) Limited (FWD), was sentenced to 46 months’ imprisonment. She earlier pleaded guilty to 20 charges – two of conspiracy to defraud, contrary to the Common Law; and 18 of conspiracy to deal with property known or believed to represent proceeds of an indictable offence (conspiracy to launder crime proceeds), contrary to section 25(1) of the Organized and Serious Crimes Ordinance and section 159A(1) the Crimes Ordinance.Ten co-defendants, who admitted various counts of the above charges, received jail terms ranging from 11 to 22 months. The defendants, aged between 25 and 61, are six insurance agents of Lo’s team in FWD – Chan Ka-yu, Lam Hiu-tung, Lam Wai-kit, Wong Bryant, Zhou Yutian and Cheung Ho-cheung; the then unit manager of Sun Life Hong Kong Limited (Sun Life HK), Kwok Yun-fong, and her three downline agents Tang Ho-lun, To Wai-to and Wong Lin-yan.In sentencing, Judge Mr Josiah Lam Wai-kuen remarked that Lo persuaded various individuals to pose as dummy insurance agents and used their bank accounts to deal with the incomes in relation to the insurance policies concerned. She played a pivotal role in materialising the present case which lasted 51 months.Sentencing of two co-defendants who also pleaded guilty to their charges was adjourned to a later date after rendering assistance to the prosecution. Four other then insurance agents pleading not guilty to their charges will face trial at the District Court on May 12.The ICAC investigation arose from a corruption complaint against dummy insurance agents. Enquiries revealed that between February 2016 and November 2020, Lo had recruited co-defendants in the case and others to join either Sun Life HK or FWD. Lo told some of the recruited persons that they were dummy insurance agents and were not required to source any clients after joining the insurers.The ICAC investigation revealed that Lo had conspired with other FWD insurance agents to falsely represent that the FWD insurance agents recruited by Lo were the handling agents of 272 insurance policy applications. In addition, Lo had conspired with Kwok Yun-fong and other Sun Life HK insurance agents to falsely represent that the Sun Life HK insurance agents recruited by Lo were the handling agents of 206 insurance policy applications.As a result, Sun Life HK and FWD approved the above 478 applications and released commissions, incentives, bonuses and allowances totalling over $22 million to Lo’s team, and over $29 million to Kwok Yun-fong’s team.The ICAC also enquiries revealed that the above 478 insurance policy applications mostly involved high commission rate insurance products. In the end, most of the insurance policies concerned lapsed after subsequent premiums were not paid.Lo had requested the dummy insurance agents to return most of the payments to her after receiving commissions and other payments from the insurers. Individuals involved in the case then laundered crime proceeds totalling about $47 million in relation to the scheme through 23 bank accounts, which in fact were controlled by Lo, to receive the commissions and other payments concerned, the court heard.FWD and Sun Life HK 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 officers Nick Lai and Chase Wong. 07
Feb 2025Certified public accountant charged by ICAC gets five years’ jail for stealing USD1.25mAn ICAC corruption investigation earlier revealed that a certified public accountant had stolen over USD1.25 million in total from two companies when he served as a trustee handling their business and financial affairs. The defendant, convicted of theft after trial, was today (February 7) sentenced to five years’ imprisonment at the District Court.Cheung Hing-chik, 76, was earlier found guilty of two counts of theft, contrary to Section 9 of the Theft Ordinance.In sentencing, Deputy District Judge Casewell remarked that the acts of the defendant constituted a serious breach of trust. Earlier in convicting the defendant, the judge reprimanded him for abusing his position as a trustee. The defendant had acted dishonestly and fraudulently, which was a clear breach of his fiduciary duties.The court heard that at the material time, the defendant was entrusted by a couple residing outside Hong Kong to handle business and financial affairs of two companies, which respectively engaged in arts trading and securities investment. The defendant was the sole authorised signatory for bank accounts of the two companies but he was not permitted to dispose of any funds or securities of the companies without the couple’s consent. He was also required to provide the relevant bank passbook to the couple for regular check.The ICAC investigation revealed that between February 2016 and January 2020, the defendant had transferred over USD1.25 million in the bank accounts of the two companies to his personal bank accounts on over 50 occasions without the consent of the couple.In order to conceal his embezzlement, the defendant had falsely represented to the couple that he had lost the bank passbook and provided multiple bank account transaction records containing false information to them for checking. ICAC enquiries also revealed that the defendant had sold the securities held by one of the companies without the consent of the couple and misappropriated the proceeds.The prosecution was today represented by Senior Public Prosecutor Steven Liu, assisted by ICAC officer Carla Yeung.The ICAC has been collaborating with various professional bodies in the accounting industry to provide integrity training to accounting professionals, reminding them to uphold professional ethics and the highest standard of integrity so as to protect the clients’ and the public interest. Last year, the ICAC co-hosted a professional anti-corruption course with the Hong Kong Institute of Certified Public Accountants for the first time to enhance the professional ethics standards of accountants. Accounting professionals can visit the website of the Hong Kong Business Ethics Development Centre of the ICAC for more information about the corruption prevention resources related to the industry. 07
Feb 2025$10m Housing Authority loans fraud syndicate head absconded for 20 years charged by ICACIn late 2003, the ICAC smashed a fraud syndicate which recruited individuals to defraud the Housing Authority (HA) of interest-free home assistance loans totalling over $10 million and three banks of mortgage loans in a total sum of over $5 million by falsifying the occupations and incomes of dummy applicants, resulting in the prosecution of over 30 persons, including backbone members of the syndicate and dummy applicants. The head of the syndicate, who had been wanted by the ICAC since 2004 after jumping bail, was charged upon returning to Hong Kong. A court mention was conducted in the Eastern Magistrates’ Courts this afternoon (February 7).Shiu Kwok-piu, 65, unemployed, was yesterday (February 6) charged with four counts of conspiracy to defraud, contrary to the Common Law. Principal Magistrate Mr Don So Man-lung adjourned the case to tomorrow morning (February 8) for mention.The alleged offences took place between January 2001 and October 2003. At the material time, the HA introduced the Home Assistance Loan Scheme (the Scheme, formerly known as the Home Purchase Loan Scheme) to help eligible families or single persons to buy flats of their own. The Scheme was terminated in July 2024.Applicants of the Scheme were required to submit their employment and income proofs to support their capability of repaying the loans and that their incomes did not exceed the upper limits. Under the Scheme, each single-person applicant could obtain an interest-free loan of up to $330,000 as down payment, while the maximum amount of the interest-free loan released to each family-based applicant was $660,000. Apart from applying for an interest-free loan from the HA, an applicant could also apply for a mortgage loan from a bank.One of the charges alleges that Shiu had conspired with the syndicate members and 36 dummy applicants to defraud the HA to approve the applications made by the dummy applicants under the Scheme and to release interest-free loans to them. Interest-free loans in relation to the 36 applications amounted to over $10 million.Three other charges allege that Shiu had conspired with the syndicate members and 10 of the dummy applicants to defraud The Bank of East Asia, Limited, Standard Chartered Bank (Hong Kong) Limited and Shanghai Commercial Bank Limited to approve and release mortgage loans totallling over $5 million.In the course of making applications with the HA and the three banks, Shiu and the co-conspirators had allegedly submitted false employment contracts and monthly income proofs to falsify the employment and incomes of the applicants.At that time, the ICAC had received a corruption complaint, alleging that a syndicate had conspired together to offer advantages to individuals including property and insurance agents in obtaining HA loans by deception. Investigation revealed that persons implicated in the scam had falsely stated that the dummy applicants were employed by various companies made up by them and falsified their incomes to facilitate their applications for loans from the HA and various banks.Over 30 individuals, including backbone members of the syndicate, dummy applicants, property vendors and agents, etc. were subsequently charged by the ICAC. The defendants, convicted of fraud, using false instruments and other related offences, received sentences up to 27 months in jail. The ICAC also administered formal caution to various individuals implicated in the scam.The HA and the three banks concerned rendered full assistance to the ICAC during its investigation.The prosecution was today represented by ICAC officer Tim Lam. 05
Feb 2025Two then employees of DSD’s contractor charged by ICAC with fraud over $6.3m sewage treatment facilitates maintenance ordersTwo then project managers of a contractor of the Drainage Services Department (DSD) were charged by the ICAC yesterday (February 4) for allegedly making various false representations that they had obtained the required number of quotations to deceive the contractor into awarding over 30 maintenance orders for sewage treatment facilities in the total sum of over $6.3 million to three subcontractors.Yip Hing-fai, 45; and Wong Chun-tung, 43, both then project managers of ATAL Engineering Limited (ATAL), were charged with two counts and one count of fraud, contrary to section 16A of the Theft Ordinance, respectively. They were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (February 6) for mention. The prosecution will later make an application for transferring the case to the District Court for plea.At the material time, ATAL was a contractor of the DSD responsible for the operation and maintenance of sewage treatment facilities at various districts in Hong Kong and two sewage treatment works. The two defendants oversaw the relevant maintenance works. When conducting a tendering exercise, they were required to obtain at least two quotations from subcontractors, record on a quotation analysis report the relevant prices quoted, and submit the report with assessment and recommendation to the company for endorsement.It is alleged that between April 2017 and August 2021, Yip had falsely represented to ATAL that 18 quotation analysis reports were genuine, and with intent to defraud, induced ATAL to award the relevant maintenance orders in the sum of over $4.7 million to two subcontractors.Between February 2019 and November 2020, Wong had allegedly induced ATAL to award 13 maintenance orders in the total sum of over $1.6 million to another subcontractor by similar fraudulent means.The ICAC investigation stemmed from a corruption complaint. Enquiries revealed that a number of subcontractors listed on the quotation analysis reports had not provided the quotations concerned.The DSD and ATAL had rendered full assistance to the ICAC during its investigation into the case.
Feb 2025Four charged by ICAC with $230,000 bribery over $25m renovation projects of two Japanese chain storesA then employee of a design consultancy and three others were charged by the ICAC today (February 12) for allegedly conspiring together for the employee to accept bribes of over $230,000 for assisting two works contractors to secure two renovation projects of Japanese chain stores involving project fees totalling over $25 million.The four defendants are Pian Pang Ka-shin, 41, then marketing executive of K&C Creation Limited (KCL); Li Po-wah, 34, director cum shareholder of RNK Design and Engineering Company Limited (RNK); Pang Wai-yin, 50, then site supervisor of RNK; and Yung Chor-chi, 46, operator of Flaming Engineering Company Limited (FEL).They jointly face one count of conspiracy for an agent to accept an advantage, contrary to sections 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance. The case is set for plea at the Kowloon City Magistrates’ Courts tomorrow (February 13).KCL is a design consultancy. In 2019, it was awarded two renovation projects respectively concerning a branch of drugstore chain “Tokyo Lifestyle” in Kowloon and the store of supermarket chain “Donki Japan” in Macau.At the material time, Pang Ka-shin was a marketing executive of KCL responsible for co-ordinating contractors and arranging tender exercises. For the two renovation projects concerned, she was responsible for submitting quotations and tenders to RNK or Donki for selection. RNK and FEL were both works contractors respectively set up by Li in Hong Kong and Yung in Macau.The charge alleges that between June 2019 and January 2022, the four defendants had conspired together for Pang Ka-shin to accept bribes of over $230,000 from the three co-defendants for assisting the trio to secure the two renovation projects managed by KCL. Renovation fees of the two projects amounted to over $25 million in total.RNK and Donki rendered full assistance to the ICAC during its investigation into the case. 11
Feb 2025Main culprit in $52m dummy agents commissions fraud case charged by ICAC jailed for 46 monthsAn ICAC corruption investigation earlier revealed a dummy insurance agents’ scheme where individuals had conspired together to defraud two insurers of commissions totalling about $52 million by making false representations about the handling agents of 478 insurance policies and to launder crime proceeds. A then branch manager of an insurer, who recruited various individuals to take part in the plot, was today (February 11) sentenced to 46 months’ imprisonment at the District Court while 10 dummy insurance agents received jail terms ranging from 11 to 22 months.Lo Yin-wa, 32, then branch manager of FWD Life Insurance Company (Bermuda) Limited (FWD), was sentenced to 46 months’ imprisonment. She earlier pleaded guilty to 20 charges – two of conspiracy to defraud, contrary to the Common Law; and 18 of conspiracy to deal with property known or believed to represent proceeds of an indictable offence (conspiracy to launder crime proceeds), contrary to section 25(1) of the Organized and Serious Crimes Ordinance and section 159A(1) the Crimes Ordinance.Ten co-defendants, who admitted various counts of the above charges, received jail terms ranging from 11 to 22 months. The defendants, aged between 25 and 61, are six insurance agents of Lo’s team in FWD – Chan Ka-yu, Lam Hiu-tung, Lam Wai-kit, Wong Bryant, Zhou Yutian and Cheung Ho-cheung; the then unit manager of Sun Life Hong Kong Limited (Sun Life HK), Kwok Yun-fong, and her three downline agents Tang Ho-lun, To Wai-to and Wong Lin-yan.In sentencing, Judge Mr Josiah Lam Wai-kuen remarked that Lo persuaded various individuals to pose as dummy insurance agents and used their bank accounts to deal with the incomes in relation to the insurance policies concerned. She played a pivotal role in materialising the present case which lasted 51 months.Sentencing of two co-defendants who also pleaded guilty to their charges was adjourned to a later date after rendering assistance to the prosecution. Four other then insurance agents pleading not guilty to their charges will face trial at the District Court on May 12.The ICAC investigation arose from a corruption complaint against dummy insurance agents. Enquiries revealed that between February 2016 and November 2020, Lo had recruited co-defendants in the case and others to join either Sun Life HK or FWD. Lo told some of the recruited persons that they were dummy insurance agents and were not required to source any clients after joining the insurers.The ICAC investigation revealed that Lo had conspired with other FWD insurance agents to falsely represent that the FWD insurance agents recruited by Lo were the handling agents of 272 insurance policy applications. In addition, Lo had conspired with Kwok Yun-fong and other Sun Life HK insurance agents to falsely represent that the Sun Life HK insurance agents recruited by Lo were the handling agents of 206 insurance policy applications.As a result, Sun Life HK and FWD approved the above 478 applications and released commissions, incentives, bonuses and allowances totalling over $22 million to Lo’s team, and over $29 million to Kwok Yun-fong’s team.The ICAC also enquiries revealed that the above 478 insurance policy applications mostly involved high commission rate insurance products. In the end, most of the insurance policies concerned lapsed after subsequent premiums were not paid.Lo had requested the dummy insurance agents to return most of the payments to her after receiving commissions and other payments from the insurers. Individuals involved in the case then laundered crime proceeds totalling about $47 million in relation to the scheme through 23 bank accounts, which in fact were controlled by Lo, to receive the commissions and other payments concerned, the court heard.FWD and Sun Life HK 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 officers Nick Lai and Chase Wong. 07
Feb 2025Certified public accountant charged by ICAC gets five years’ jail for stealing USD1.25mAn ICAC corruption investigation earlier revealed that a certified public accountant had stolen over USD1.25 million in total from two companies when he served as a trustee handling their business and financial affairs. The defendant, convicted of theft after trial, was today (February 7) sentenced to five years’ imprisonment at the District Court.Cheung Hing-chik, 76, was earlier found guilty of two counts of theft, contrary to Section 9 of the Theft Ordinance.In sentencing, Deputy District Judge Casewell remarked that the acts of the defendant constituted a serious breach of trust. Earlier in convicting the defendant, the judge reprimanded him for abusing his position as a trustee. The defendant had acted dishonestly and fraudulently, which was a clear breach of his fiduciary duties.The court heard that at the material time, the defendant was entrusted by a couple residing outside Hong Kong to handle business and financial affairs of two companies, which respectively engaged in arts trading and securities investment. The defendant was the sole authorised signatory for bank accounts of the two companies but he was not permitted to dispose of any funds or securities of the companies without the couple’s consent. He was also required to provide the relevant bank passbook to the couple for regular check.The ICAC investigation revealed that between February 2016 and January 2020, the defendant had transferred over USD1.25 million in the bank accounts of the two companies to his personal bank accounts on over 50 occasions without the consent of the couple.In order to conceal his embezzlement, the defendant had falsely represented to the couple that he had lost the bank passbook and provided multiple bank account transaction records containing false information to them for checking. ICAC enquiries also revealed that the defendant had sold the securities held by one of the companies without the consent of the couple and misappropriated the proceeds.The prosecution was today represented by Senior Public Prosecutor Steven Liu, assisted by ICAC officer Carla Yeung.The ICAC has been collaborating with various professional bodies in the accounting industry to provide integrity training to accounting professionals, reminding them to uphold professional ethics and the highest standard of integrity so as to protect the clients’ and the public interest. Last year, the ICAC co-hosted a professional anti-corruption course with the Hong Kong Institute of Certified Public Accountants for the first time to enhance the professional ethics standards of accountants. Accounting professionals can visit the website of the Hong Kong Business Ethics Development Centre of the ICAC for more information about the corruption prevention resources related to the industry. 07
Feb 2025$10m Housing Authority loans fraud syndicate head absconded for 20 years charged by ICACIn late 2003, the ICAC smashed a fraud syndicate which recruited individuals to defraud the Housing Authority (HA) of interest-free home assistance loans totalling over $10 million and three banks of mortgage loans in a total sum of over $5 million by falsifying the occupations and incomes of dummy applicants, resulting in the prosecution of over 30 persons, including backbone members of the syndicate and dummy applicants. The head of the syndicate, who had been wanted by the ICAC since 2004 after jumping bail, was charged upon returning to Hong Kong. A court mention was conducted in the Eastern Magistrates’ Courts this afternoon (February 7).Shiu Kwok-piu, 65, unemployed, was yesterday (February 6) charged with four counts of conspiracy to defraud, contrary to the Common Law. Principal Magistrate Mr Don So Man-lung adjourned the case to tomorrow morning (February 8) for mention.The alleged offences took place between January 2001 and October 2003. At the material time, the HA introduced the Home Assistance Loan Scheme (the Scheme, formerly known as the Home Purchase Loan Scheme) to help eligible families or single persons to buy flats of their own. The Scheme was terminated in July 2024.Applicants of the Scheme were required to submit their employment and income proofs to support their capability of repaying the loans and that their incomes did not exceed the upper limits. Under the Scheme, each single-person applicant could obtain an interest-free loan of up to $330,000 as down payment, while the maximum amount of the interest-free loan released to each family-based applicant was $660,000. Apart from applying for an interest-free loan from the HA, an applicant could also apply for a mortgage loan from a bank.One of the charges alleges that Shiu had conspired with the syndicate members and 36 dummy applicants to defraud the HA to approve the applications made by the dummy applicants under the Scheme and to release interest-free loans to them. Interest-free loans in relation to the 36 applications amounted to over $10 million.Three other charges allege that Shiu had conspired with the syndicate members and 10 of the dummy applicants to defraud The Bank of East Asia, Limited, Standard Chartered Bank (Hong Kong) Limited and Shanghai Commercial Bank Limited to approve and release mortgage loans totallling over $5 million.In the course of making applications with the HA and the three banks, Shiu and the co-conspirators had allegedly submitted false employment contracts and monthly income proofs to falsify the employment and incomes of the applicants.At that time, the ICAC had received a corruption complaint, alleging that a syndicate had conspired together to offer advantages to individuals including property and insurance agents in obtaining HA loans by deception. Investigation revealed that persons implicated in the scam had falsely stated that the dummy applicants were employed by various companies made up by them and falsified their incomes to facilitate their applications for loans from the HA and various banks.Over 30 individuals, including backbone members of the syndicate, dummy applicants, property vendors and agents, etc. were subsequently charged by the ICAC. The defendants, convicted of fraud, using false instruments and other related offences, received sentences up to 27 months in jail. The ICAC also administered formal caution to various individuals implicated in the scam.The HA and the three banks concerned rendered full assistance to the ICAC during its investigation.The prosecution was today represented by ICAC officer Tim Lam. 05
Feb 2025Two then employees of DSD’s contractor charged by ICAC with fraud over $6.3m sewage treatment facilitates maintenance ordersTwo then project managers of a contractor of the Drainage Services Department (DSD) were charged by the ICAC yesterday (February 4) for allegedly making various false representations that they had obtained the required number of quotations to deceive the contractor into awarding over 30 maintenance orders for sewage treatment facilities in the total sum of over $6.3 million to three subcontractors.Yip Hing-fai, 45; and Wong Chun-tung, 43, both then project managers of ATAL Engineering Limited (ATAL), were charged with two counts and one count of fraud, contrary to section 16A of the Theft Ordinance, respectively. They were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (February 6) for mention. The prosecution will later make an application for transferring the case to the District Court for plea.At the material time, ATAL was a contractor of the DSD responsible for the operation and maintenance of sewage treatment facilities at various districts in Hong Kong and two sewage treatment works. The two defendants oversaw the relevant maintenance works. When conducting a tendering exercise, they were required to obtain at least two quotations from subcontractors, record on a quotation analysis report the relevant prices quoted, and submit the report with assessment and recommendation to the company for endorsement.It is alleged that between April 2017 and August 2021, Yip had falsely represented to ATAL that 18 quotation analysis reports were genuine, and with intent to defraud, induced ATAL to award the relevant maintenance orders in the sum of over $4.7 million to two subcontractors.Between February 2019 and November 2020, Wong had allegedly induced ATAL to award 13 maintenance orders in the total sum of over $1.6 million to another subcontractor by similar fraudulent means.The ICAC investigation stemmed from a corruption complaint. Enquiries revealed that a number of subcontractors listed on the quotation analysis reports had not provided the quotations concerned.The DSD and ATAL had rendered full assistance to the ICAC during its investigation into the case.