Recent ICAC Cases

12
May 2022
Fourteen months’ jail for ex-district manager of insurance company charged by ICAC with fraud over signing fee

A former district manager of an insurance company, charged by the ICAC, was today (May 12) sentenced to 14 months’ imprisonment at the District Court for deceiving the insurer into offering her a signing fee of over $860,000 by submitting false previous income proof which exaggerated her total income by over $1.5 million.

Lau Kit-yee, 61, former district manager of AIA (International) Limited (AIA), was earlier found guilty of one count of fraud, contrary to Section 16A(1) of the Theft Ordinance.

In sentencing, Judge Mr Eddie Yip Chor-man said he took a starting point of 15 months’ imprisonment and reduced the defendant’s jail term by one month having considered the mitigating factors.

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 June 2015, the defendant was recruited to join AIA. For the purpose of calculating the relevant signing fee, she submitted her incoming proof during her employment with another insurance company for the period between June 2013 and May 2015 to AIA.

Based on the income proof which showed that the defendant’s total income during the above period was about $2.2 million, AIA approved to pay her a signing fee of over $860,000 in August 2015.

However, ICAC inquiries revealed that the defendant’s total income during the period was about $650,000 and she was only entitled to receive a signing fee of about $100,000. By exaggerating the total income by over $1.5 million, the defendant was granted a signing fee $760,000 higher than her entitlement.

Had AIA known the income proof was false, the company would not have paid the defendant the signing fee nor employed her.

The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offence. AIA had rendered full assistance to the ICAC during its investigation into the case.

The prosecution was today represented by Senior Assistant Director of Public Prosecutions Alice Chan, assisted by ICAC officer Teresa Cheung.

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