Integrity Focus

The ICAC had earlier charged a property buyer for inducing a bank not to demand repayment of a mortgage loan of over $8 million granted with a loan-to-value (LTV) ratio of 80 per cent by concealing the property was leased out and making false representation that the owner-occupied requirement was met. A Deputy Judge today (December 12) imposed a 14 months’ jail term on the defendant at the District Court and ordered to confiscate the income from letting the property totalling $700,000.

Wong Hin-ning, 49, insurance agent, earlier pleaded guilty to two counts of fraud, contrary to section 16A of the Theft Ordinance.

In sentencing, Deputy Judge Bernard Chung remarked that the case was serious in nature. He took a starting point of 30 months’ imprisonment and reduced the jail term to 14 months having considered the defendant’s guilty plea and other mitigating factors.

The Deputy Judge also approved the prosecution’s application for confiscation order, and ordered to confiscate from the defendant crime proceeds of $700,000, being the income from letting the property in the present case. The defendant is required to satisfy the confiscation order by December 16, failing which she will have to serve an additional term of imprisonment of 20 months.

According to the guidelines issued by the Hong Kong Monetary Authority, banks are required to comply with the LTV ratio requirement on owner-occupied residential mortgage lending. At the material time, China CITIC Bank International Limited (CNCBI) provided a mortgage loan with an LTV ratio of up to 80 per cent for a self-used private residential property valued between $8 million and $10 million.

The court heard that, in late February 2020, the defendant purchased a private residential property in Ho Man Tin at $9.98 million on behalf of her son who was abroad at that time. A few days later, she applied for a mortgage loan with an LTV of 80 per cent with CNCBI and declared that the property would be occupied by her and her son. The defendant signed a declaration in the mortgage loan application form, declaring that she was under an obligation to notify CNCBI immediately if the property was no longer occupied by her or her son. The bank approved the application and granted a mortgage loan of over $8 million, representing 80 per cent of the purchase price of the property, to the defendant in late June 2020.

The ICAC enquiries, arising from a corruption complaint, revealed that between August 2020 and June 2022, the defendant leased out the property concerned to two tenants at a monthly rental of $19,000 and $20,500 respectively, but never informed CNCBI of the change in the occupancy status of the property. CNCBI sent a letter in December 2021 to request the defendant and her son to confirm whether the property would continue to be occupied by them. The duo gave an affirmative reply to CNCBI.

Had CNCBI known the property was used for leasing, they would have demanded the defendant to repay part or all of the mortgage loan or impose other conditions on her, including an increase in the interest rate.

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

The prosecution was today represented by Senior Public Prosecutor Jason Lau and Public Prosecutor Matthew Hui, assisted by ICAC officers Keith Kwok and Simon Ip.