Integrity Focus

An insurance agent, charged by ICAC, was today (September 25) sentenced to 10 months’ imprisonment at the Eastern Magistrates’ Courts for defrauding the company of commissions, bonuses and other payments totalling over $650,000 by providing false information in insurance policy applications.

Lee Hon-yin, 28, former business manager of China Taiping Life Insurance (Hong Kong) Company Limited (China Taiping), earlier pleaded guilty to two counts of fraud, contrary to section 16A(1) of the Theft Ordinance. He was today sentenced by Principal Magistrate Mr Don So Man-lung to a jail term of 10 months.

At the material time, the defendant was a business manager of China Taiping. China Taiping required all its agents to explain the terms and conditions of relevant insurance policies to their clients in-person when selling an insurance product. The company prohibited its agents from providing any false information about the policyholder and the identity of the handling agent. China Taiping would issue commissions, bonuses and other payments to the handling agent upon the approval of a policy application and receipt of the premium.

The court heard that in July 2021, China Taiping received two insurance policy applications purportedly taken out by a client and sold by the defendant. Believing the information on the application forms was true and the applications were genuinely taken out by the client, China Taiping hence approved the applications and released the commissions, bonuses and other payments totalling over $650,000 to the defendant.

The ICAC investigation arose from a corruption complaint in relation to the insurance policies concerned. Enquiries revealed that the client did not know the defendant. She did not apply for the above-mentioned insurance policies, nor did she pay premiums for the policies. Her personal information on the application forms was also false.

Enquiries also revealed that after China Taiping had released the commissions, bonuses and other payments to the defendant, both insurance policies eventually lapsed due to default of payment on further premiums.

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

Co-defendant Chau Yui-kwan, 34, former assistant unit manager of China Taiping, faced one count of forgery, contrary to section 71 of the Crimes Ordinance. The case was adjourned to November 6 for plea at the Eastern Magistrates’ Courts.

The prosecution was today represented by Senior Public Prosecutor Steven Liu, assisted by ICAC officer Ryan Ku.