Recent ICAC Cases

19
May 2020
Four charged with fraud over Euro 83,000 vehicle warranty claims

Four former employees of a vehicle distributor have been charged by the ICAC today (May 19) in separate cases for their alleged roles in defrauding a vehicle manufacturer of warranty claims for repair works totalling over Euro 83,000.

The defendants are Leung Pak-lim, 33, and Leung Ka-chai, 28, both former technical officer of Regal Motors Limited (Regal Motors); Ho Siu-hei, 27, former assistant technical officer of Regal Motors; and Kwan Fu-sing, 29, former technical trainee of Regal Motors.

Leung Pak-lim faces two charges – one of conspiracy to defraud, contrary to Common Law, and one of conspiracy to use a false instrument, contrary to Sections 73 and 159A of the Crimes Ordinance. Leung Ka-chai and Kwan each faces one count of conspiracy to defraud, while Ho faces one count of conspiracy to use false instruments.

The defendants will appear at the Fanling Magistracy on Thursday (May 21) for plea in separate cases.

The cases arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offences, which took place between August 1, 2015 and November 2, 2018.

Between 1970 and 2019, Regal Motors was the sole distributor of products of German vehicle manufacturer MAN Truck & Bus SE (MAN Truck & Bus) in Hong Kong. MAN Truck & Bus provided a two-year warranty for chassis of vehicles sold by Regal Motors. If repairs conducted by Regal Motors for its customers were covered by warranties, it would submit warranty claims to MAN Truck & Bus.

The defendants were all posted to Regal Motors’ technical team, headed by an assistant technical manager, responsible for assisting customers to activate their warranties.

A charge against Leung Pak-lim alleges that he conspired together with the aforesaid assistant technical manager and a technical trainee of Regal Motors to defraud MAN Truck & Bus by dishonestly falsely representing in 53 warranty claims for repair of vehicles that the vehicles were covered by valid warranties, thereby causing and inducing MAN Truck & Bus to settle warranty claims totalling over Euro 43,000.

The two charges against Leung Ka-chai and Kwan allege that Leung Ka-chai and Kwan, using similar fraudulent means, respectively conspired with the assistant technical manager to defraud MAN Truck & Bus, thereby causing and inducing the company to settle a warranty claim of over Euro 200 and 17 warranty claims totalling over Euro 10,000.

Another charge against Leung Pak-lim alleges that he conspired with the abovementioned technical trainee to use a false vehicle registration document, with the intention of inducing somebody to accept it as genuine.

The charge against Ho alleges that he conspired with the assistant technical manager and another technical trainee of Regal Motors to use 13 false vehicle registration documents, with the intention of inducing somebody to accept them as genuine.

It is alleged that the false vehicle registration documents led to the repair of 14 vehicles by Regal Motors. The repair costs totalling about Euro 30,000 were borne by MAN Truck & Bus.

Regal Motors and MAN Truck & Bus have rendered full assistance to the ICAC during its investigation into the case.

The defendants have been released on ICAC bail, pending their court appearance on Thursday.

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