Integrity Focus

In the course of a corruption investigation by the ICAC, it was revealed that two insurance agents had recruited another person to pose as dummy insurance agent to obtain commissions and bonuses totalling over $270,000 by making false representations that the latter had handled three insurance policies and collected most of the sum from the latter. The duo were today (December 19) each sentenced to eight months’ imprisonment at the Eastern Magistrates’ Courts after being convicted of conspiracy to launder crime proceeds.

Cheng Yik-lut and Jovi Leung Kin-fung, both insurance agents and aged 30, were convicted of one count of conspiracy to deal with property known or believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance and Section 159A of the Crimes Ordinance.

In sentencing, Deputy Magistrate Miss Chung Wing-sze said the offence warranted custodial sentences for the two insurance agents as they proactively arranged a dummy insurance agent to take part in the scam and dealt with the crime proceeds.

The court heard that in 2019, the duo arranged Cheng Tsz-sing, cousin of Cheng Yik-lut, to pose as a dummy insurance agent at Chubb Life Insurance Company Limited (Chubb). Chubb subsequently received three insurance policy applications submitted by Cheng Yik-lut, in which Cheng Tsz-sing was named as the handling agent. As a result, Cheng Tsz-sing received commissions and bonuses of over $270,000 from Chubb.

The ICAC investigation arose from a corruption complaint. Enquiries revealed that Cheng Tsz-sing was not actually the handling agent of the three insurance policies. Upon the defendants’ request, Cheng Tsz-sing transferred over $240,000 to designated bank accounts and retained about $27,000 as his rewards.

Cheng Tsz-sing was earlier charged with one count of conspiracy to launder crime proceeds in a separate case for taking part in the scam. He pleaded guilty to the charge and rendered assistance to the prosecution, leading to the successful prosecution of the two defendants in the present case. Sentencing of Cheng Tsz-sing was adjourned to January 31 next year.

Chubb had rendered full assistance to the ICAC during its investigation into the case.

The prosecution was today represented by prosecuting counsel Mr Alexander Cheung, assisted by ICAC officers Teresa Cheung and Romeo Chu.

The ICAC will continue to collaborate with the industry in providing integrity training to insurance intermediaries. The ICAC had earlier organised a Professional Anti-Corruption Training for Management in Insurance Sector for 28 insurance companies in order to enhance integrity management in the industry. For more information on the ICAC’s preventive and educational services for the industry, please visit the Ethics Promotion Website for the Insurance Industry produced by the Hong Kong Business Ethics Development Centre, and the Corruption Prevention Department’s Corruption Prevention Advisory Service Web Portal.