Recent ICAC Cases

28
Apr 2021
Six months’ jail for defrauding insurance company of $260,000 signing fee

A former insurance agent, charged by the ICAC, was today (April 28) sentenced to six months’ imprisonment at the Eastern Magistrates’ Courts for deceiving an insurance company into offering him a more favourable remuneration package involving a signing fee of over $260,000 by submitting false income proof statements.

Li Tak-shan, 56, former insurance agent of AIA (International) Limited (AIA), was earlier found guilty of one count of fraud, contrary to Section 16A(1) of the Theft Ordinance.

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

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

In March 2014, the defendant was recruited to join AIA. For the purpose of calculating the relevant signing fee, his commission account statements in relation to another insurance company between February 2012 and January 2014 were submitted to AIA as income proof.

Based on the commission account statements which purportedly showed that the defendant’s total income during the aforesaid period was about $1.1 million, AIA approved to grant him a signing fee of over $260,000, and released the sum to him when he joined the company in May 2014.

However, ICAC enquiries revealed that the defendant’s total income between the abovementioned period was less than $130,000.

Had AIA known the total amount of the commission account statements was exaggerated by over $940,000, the company would not have employed the defendant and approved granting him any signing fee.

AIA had rendered full assistance to the ICAC during its investigation into the case.

The prosecution was today represented by prosecuting counsel Stephen Fong, assisted by ICAC officer Teresa Cheung.

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