Recent ICAC Cases

19
Oct 2020
Two former insurance agents charged with $1m signing fee fraud

Two former insurance agents have been charged by the ICAC today (October 19) in separate cases for deceiving an insurance company into offering them more favourable signing fees totalling over $1 million by submitting false income proof statements.

Lau Kit-yee, 60, former district manager of AIA (International) Limited (AIA), faces one count of fraud, contrary to Section 16A(1) of the Theft Ordinance. She will appear in the Eastern Magistrates’ Courts on Wednesday (October 21) for her case to be transferred to the District Court for plea.

In another case, Li Tak-shan, 55, former insurance agent of AIA, who faces one count of fraud, will appear in the Eastern Magistrates’ Courts on the same day for plea.

The cases arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offences.

AIA offers remuneration packages, including signing fees, as incentives to recruit experienced insurance agents. A signing fee is calculated based on the income of a new recruit as shown on his or her income proof statements in the past 24 months.

Lau joined AIA as a district manager in August 2015 while Li joined the company in May 2014 as an insurance agent. Both Lau and Li were downline agents of a district director of AIA.

In the first case, the charge alleges that between July 1 and August 20, 2015, Lau submitted false income proof statements to AIA by deceit and with intent to defraud, induced AIA to offer her a more favourable remuneration package which resulted in benefit to her or in prejudice to AIA.

It is alleged that AIA was induced to release a higher signing fee with extra payment of over $760,000 to Lau.

In the second case, the charge alleges that between March 1 and May 21, 2014, Li submitted false income proof statements to AIA by deceit and with intent to defraud, induced AIA to offer him a more favourable remuneration package which resulted in benefit to him or in prejudice to AIA.

It is alleged that AIA was induced to release a signing fee of over $260,000 to Li which he was not entitled to receive.

AIA has rendered full assistance to the ICAC during its investigation into the cases.

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

Back To Top