Recent ICAC Cases

26
May 2021
Property agent admits bribing supervisor with $130,000 over property transactions

A property agent, charged by the ICAC, today (May 26) admitted at the Kowloon City Magistrates’ Courts that he had offered bribes totalling about $130,000 to his supervisor for procuring three property transactions involving a total transaction price amounted to over $61.5 million.

Ken Koo Chun-fai, 47, senior account manager of Midland Realty (Commercial) Limited (Midland Realty (Commercial)), pleaded guilty to three counts of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance.

Deputy Magistrate Mr Yu Chun-pong adjourned the case to June 9 for sentence, pending a background report. The defendant was remanded in the custody of the Correctional Services Department.

The court heard that at the material time, the defendant was a senior account manager of Midland Realty (Commercial) attached to a branch in Tsim Sha Tsui. For any property transaction procured by the defendant, Midland Realty (Commercial) would charge both the vendor and the purchaser one per cent of the transaction price as agency commission, which would be taken into account to calculate his monthly sales commission. A senior sales manager of the branch would also earn an overriding commission for a property transaction procured by the defendant.

In late February 2017, the senior sales manager instructed the defendant to source commercial properties for his client. Upon the recommendation of the senior sales manager and the defendant, the client purchased three commercial properties in Shau Kei Wan and Wan Chai respectively at $9.2 million, $25 million and over $27.3 million, totalling over $61.5 million.

Midland Realty (Commercial) subsequently paid sales commissions totalling about $310,000 and overriding commissions totalling over $160,000 respectively to the defendant and the senior sales manager in connection with the three property transactions.

The defendant agreed to pay the senior sales manager half of his own sales commissions arising from the three transactions, after deducting 17 per cent of the amount for tax, so as to obtain the senior sales manager’s assistance.

The defendant offered three bribes each ranging from about $9,800 to about $62,900, totalling about $130,000, to the senior sales manager.

Midland Realty (Commercial) had rendered full assistance to the ICAC during its investigation into the case.

The prosecution was today represented by prosecuting counsel Olivia Tsang, assisted by ICAC officer Derek Cheung.

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