Integrity Focus

An ICAC corruption investigation earlier revealed a dummy insurance agents’ scheme where individuals had conspired together to defraud two insurers of commissions totalling about $52 million by making false representation about the handling agents of 478 insurance policies and to launder crime proceeds. The mastermind, a former branch manager of an insurer, and 12 dummy insurance agents today (November 23) pleaded guilty at the District Court to their respective roles in the scheme.

The instigator in the present case, Lo Yin-wa, 32, former branch manager of FWD Life Insurance Company (Bermuda) Limited (FWD), pleaded guilty to 20 charges – two of conspiracy to defraud, contrary to the Common Law; and 18 of conspiracy to deal with property known or believed to represent proceeds of an indictable offence (conspiracy to launder crime proceeds), contrary to section 25(1) of the Organized and Serious Crimes Ordinance and section 159A(1) of the Crimes Ordinance.

Twelve co-defendants, aged between 24 and 61, are seven insurance agents of Lo Yin-wa’s team in FWD – Chan Ka-yu, Lam Hiu-tung, Lam Wai-kit, Wong Bryant, Woo Kin-leung, Zhou Yutian and Cheung Ho-cheung; the former unit manager of Sun Life Hong Kong Limited (Sun Life HK), Kwok Yun-fong, and her four downline agents Tang Ho-lun, To Wai-to, Wong Lin-yan and Leung Tsz-wing. They admitted various counts of conspiracy to defraud and conspiracy to launder crime proceeds.

Judge Mr Josiah Lam Wai-kuen adjourned the case to December 21 for continuation of mitigation. To Wai-to, Wong Lin-yan, Chan Ka-yu, Lam Hiu-tung, Zhou Yutian and Cheung Ho-cheung were remanded in custody of the Correctional Services Department, while another seven defendants were granted bail.

The ICAC investigation arose from a corruption complaint against dummy insurance agents. Enquiries revealed that between February 2016 and November 2020, Lo Yin-wa had recruited co-defendants in the case and others to join either Sun Life HK or FWD. Lo Yin-wa told some of the recruited persons that they were dummy insurance agents and were not required to source any clients after joining the insurers.

The ICAC investigation revealed that Lo Yin-wa had conspired with other FWD insurance agents to falsely represent that the FWD insurance agents recruited by Lo Yin-wa were the handling agents of 272 insurance policy applications. In addition, Lo Yin-wa had conspired with Kwok Yun-fong and other Sun Life HK insurance agents to falsely represent that the Sun Life HK insurance agents recruited by Lo Yin-wa were the handling agents of 206 insurance policy applications.

Sun Life HK and FWD, which had no knowledge of the scheme, approved the above 478 applications and released commissions, incentives, bonuses and allowances totalling over $22 million to Lo Yin-wa’s team, and over $29 million to Kwok Yun-fong’s team.

The ICAC enquiries revealed that the above 478 insurance policy applications mostly involved high commission rate insurance products. In the end, most of the insurance policies concerned lapsed after subsequent premiums were not paid.

The court also heard that Lo Yin-wa requested the dummy insurance agents to return most of the payments to her after receiving commissions and other payments from the insurers. Individuals involved in the case then laundered crime proceeds totalling about $47 million in relation to the scheme through 23 bank accounts, which in fact were controlled by Lo Yin-wa, to receive the commissions and other payments concerned.

Lo Yin-wa’s husband and FWD insurance agent, Kwok Ho-leung, was also charged with two counts of conspiracy to defraud. The charges were left on file at the District Court.

Four other co-defendants, former Sun Life HK insurance agents Mo Wing-han and Lo Nga-wing; and former FWD insurance agents Ngan Tsz-ting and Kong Tsz-ying, earlier pleaded not guilty to conspiracy to launder crime proceeds and conspiracy to defraud at the District Court. Their case was adjourned to March 20, 2025 for a pre-trial review and the trial is set to commence on May 12, 2025.

FWD and Sun Life HK rendered full assistance to the ICAC during its investigation into the case.

The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officers Nick Lai and Chase Wong.