Recent ICAC Cases

Nov 2021
Ex-insurance agents charged by ICAC with $700,000 commission and compensation fraud

The ICAC yesterday (November 2) charged two former insurance agents with defrauding an insurance company of commissions and insurance compensations totalling about $700,000 by making false representations in nine policy applications and their relevant insurance compensation claims.

The investigation arose from a corruption complaint filed with the ICAC. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charging two former insurance agents of AIA International Limited (AIA), Leung King-kei and Yu Shing-yin, both 35.

Leung alone faces a total of nine charges – five of fraud, contrary to Section 16A of the Theft Ordinance; and four of conspiracy to defraud, contrary to Common Law. Yu jointly faces one count of conspiracy to defraud with Leung.

The defendants were released on ICAC bail, pending their court appearance in the Eastern Magistrates’ Courts tomorrow (November 4) for the case to be transferred to the District Court for plea.

AIA provides different insurance products to its clients. When processing an application for taking out an insurance policy, AIA would consider the client’s occupation, annual income and medical history, etc.

The alleged offences took place between July 2016 and July 2018. At the material time, Leung was an insurance agent of AIA. He was entitled to receiving overriding commissions after being promoted to unit manager in December 2017. Yu was Leung’s down-line insurance agent.

The four conspiracy charges allege that Leung separately conspired together with Yu, another down-line insurance agent and four policyholders to defraud AIA by falsely representing the occupations of the policyholders in four insurance policy applications, exaggerating their monthly salaries, and inducing AIA to approve the four insurance policy applications and to pay commissions to Leung and his down-line insurance agents.

The charges also allege that false representations were made on the policyholders’ injuries in the relevant insurance claims to induce AIA to pay insurance compensations to the policyholders.

The remaining five charges allege that Leung falsely represented to AIA the occupations and/or monthly incomes of five other policyholders, and with intent to defraud, induced AIA to approve the five insurance policy applications, to pay commissions to Leung and his down-line insurance agent, and to pay insurance compensations to the policyholders, which resulted in benefit to the policyholders, Leung and his down-line insurance agent or in prejudice to AIA.

ICAC enquiries revealed that commissions totalling about $95,000 and insurance compensations totalling about $600,000 were allegedly involved in the above scam.

Arising from the same investigation, the ICAC had earlier charged some of the above policyholders and down-line insurance agents in separate cases.

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

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