Recent ICAC Cases

06
Oct 2021
ICAC charges ex-employee of vehicle distributor with $100,000 fraud over warranty claims

The ICAC today (October 6) charged a former assistant technical manager of a vehicle distributor with defrauding a vehicle manufacturer of warranty claims for repair works totalling about $100,000.

The ICAC investigation arose from a corruption complaint. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charges be laid against the former assistant technical manager.

Samuel-mark Leung Pak-hong, 51, former assistant technical manager of Regal Motors Limited (Regal Motors), faces two counts of conspiracy to defraud, contrary to Common Law.

The defendant was released on ICAC bail, pending his appearance in the Fanling Magistrates’ Courts on Friday (October 8) for plea.

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. Where repairs conducted by Regal Motors for its customers were covered by warranties, it would submit warranty claims to MAN Truck & Bus.

At the material time, the defendant was an assistant technical manager of Regal Motors’ technical team which was responsible for assisting customers to activate their warranties. The defendant’s subordinates included a technical trainee and a technical officer.

The alleged offences took place between May 1, 2017 and January 30, 2018.

The charges allege that the defendant conspired with the aforesaid technical trainee and technical officer respectively to defraud MAN Truck & Bus by dishonestly falsely representing in 18 warranty claims for repair of vehicles that the vehicles were covered by a valid warranty, thereby causing and inducing MAN Truck & Bus to settle warranty claims totalling about $100,000.

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

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