Integrity Focus

An ICAC investigation earlier revealed that an insurance agent had defrauded an insurer of commissions and bonuses totalling over $1.6 million by making false representations that six clients had taken out various insurance policies. The insurance agent, convicted of fraud after trial, was today (May 27) sentenced to 51 months’ imprisonment at the District Court.

Yuki Fan Ting-yan, 49, then financial consultant of AXA China Region Insurance Company Limited (AXA), was earlier found guilty of 12 counts of fraud, contrary to section 16A of the Theft Ordinance.

In sentencing, Judge Ms Lily Wong Sze-lai remarked that the offences were serious in nature. The judge reprimanded the defendant for her greediness and breach of the trust placed in her by her employer. The defendant committed a premeditated crime spanning more than a year on several occasions which had brought the insurance industry into disrepute. The judge added that the defendant had not entered a guilty plea and hence would not receive any reduction in her jail term.

At the material time, the defendant was a financial consultant of AXA. She would receive a first year commission when an insurance product was sold, and a renewal year commission upon renewal of an insurance policy. She would also receive various bonuses after meeting her sales target.

The court heard that between November 2014 and September 2016, AXA received 12 insurance policy applications purportedly taken out by six clients. The defendant signed on the policy applications as the handling agent and falsely represented to AXA that the applications were taken out by those clients. AXA subsequently approved the 12 policies and received the relevant premium payments of the first year or first two years, and released commissions and bonuses in relation to the policies totalling over $1.6 million to the defendant.

The ICAC investigation arose from a corruption complaint. Investigation revealed that the six clients did not make the applications and had never paid any premium for the policies. In the end, the insurance policies lapsed after subsequent premiums were not paid.

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

The prosecution was today represented by prosecuting counsel John Marray, assisted by ICAC officer Paul Ho.