Recent ICAC Cases

08
Jul 2021
Duo charged after ICAC graft probe reveals $750,000 insurance commissions fraud

Two insurance agents were charged by the ICAC yesterday (July 7) with conspiracy to defraud an insurance company of commissions totalling over $750,000 by falsely representing that one of them had handled 10 insurance policies.

The ICAC investigation arose from a corruption complaint. Upon legal advice sought from the Department of Justice, Tin Tak-ho, 47, former senior branch manager of Manulife (International) Limited (Manulife), and Alvin Tam Man-chan, 55, former insurance agent of Manulife, were jointly charged with one count of conspiracy to defraud, contrary to Common Law.

Tin further faces five counts of forgery, contrary to Section 71 of the Crimes Ordinance.

The defendants, who have been released on ICAC bail, will appear in the Kwun Tong Magistrates’ Courts next Tuesday (July 13) for the case to be transferred to the District Court for plea.

At the material time, Tin was a senior branch manager of Manulife and Tam was his down-line agent. When an insurance product of Manulife was sold, the handling agent would receive commission while his up-line managers would receive overriding commission and / or bonus from Manulife.

The alleged offences took place between October 1, 2017 and December 22, 2018.

One of the charges alleges that Tin and Tam conspired together to defraud Manulife by dishonestly falsely representing that Tam was the handling agent for the insurance policy applications, causing and inducing Manulife to underwrite and issue the insurance policies concerned and to pay commission or other payments in relation to the insurance policies to Tin and Tam.

A total of 10 insurance policy applications and nine policyholders were involved. Manulife released commissions totalling about $470,000 to Tam, and overriding commissions totalling about $280,000 to Tin in respect of the insurance policies concerned.

The remaining charges allege that Tin made false instruments, namely five application forms for insurance products in relation to five of the aforesaid insurance policy applications purportedly signed by five policyholders, with the intention that Tin should use them to induce Manulife to accept them as genuine.

Manulife has rendered full assistance to the ICAC during its investigation into the case.

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