Recent ICAC Cases


18
Nov 2022
Ex-IO member charged as ICAC probe reveals using false cash memos to claim works paymentA then member of the Incorporated Owners (IO) of a private residential building was charged by the ICAC yesterday (November 17) for allegedly using false cash memos to claim works payment from the IO revealed in the course of a corruption investigation.Wong Suk-wing, 49, then member of the IO of Cheong Yuen Building, faces four counts of using a false instrument, contrary to Section 73 of the Crimes Ordinance. He was released on ICAC bail, pending his appearance in the West Kowloon Magistrates’ Courts next Monday (November 21) for plea.Cheong Yuen Building is a private residential building. In early 2019, the IO of Cheong Yuen Building appointed the defendant, who was an IO member, to obtain quotations from contractors for the replacement of four fire doors. The defendant proposed to engage a friend to repair the doors at $12,000. The IO agreed and subcontracted the works to the defendant.Upon completion of the works, the IO requested the defendant to provide the relevant cash memos certified by him for processing the works payment.It is alleged that between March 2019 and July 2020, the defendant used four false cash memos purportedly issued by three building material suppliers in the total sum of over $10,000 to induce the IO to accept them as genuine.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the four cash memos contained false information. Had the IO known that the contents of the cash memos were false, it would not have made the payment.
17
Nov 2022
Ex-employee of telecom company charged by ICAC jailed for bribery and dishonest access to computer over customer data leakA former employee of a telecommunications company, charged by the ICAC, was today (November 17) sentenced to three months’ imprisonment at the West Kowloon Magistrates’ Courts for accepting bribes to disclose personal information and data of over 540 customers obtained by his dishonest access to the company’s computer systems.Lai Sze-ting, 29, former junior marketing executive of PayTV Department of PCCW Services Limited (PCCW), earlier pleaded guilty to two charges – one of conspiracy for an agent to accept advantages, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance and Sections 159A of the Crimes Ordinance; and one of conspiracy to obtain access to a computer with dishonest intent, contrary to Sections 161(1)(c) and 159A of the Crimes Ordinance.Acting Principal Magistrate Miss Veronica Heung Shuk-han ordered the defendant to pay $4,000, being the amount of the bribes he accepted, as restitution to PCCW.In sentencing, the Acting Principal Magistrate said bribery is a serious offence. The offences committed by the defendant lasted about three months and involved a few hundred searches in PCCW’s computer systems, warranting a custodial sentence. She took a starting point of four and a half months imprisonment and reduced the jail term of the defendant to three months having considered his guilty plea.The court heard that PCCW maintained two computer systems for safekeeping personal information and data of customers (Customers’ Particulars), including their names, Hong Kong Identity Card numbers, phone numbers and addresses. Only designated PCCW staff were authorised to have access to the computer databases. The defendant was assigned a desktop computer with the two computer systems installed.During late July and mid-October 2018, the defendant conducted numerous searches in the two computer systems based on the basic information provided by a former team leader of PayTV Department who had left the company, and disclosed the search results containing Customers’ Particulars of over 540 customers to the latter.During the period, the defendant accepted two bribes totalling $4,000 from the former team leader for conducting the searches and disclosing the Customers’ Particulars to him.The court heard that PCCW prohibited its staff from accepting any advantage for doing any act which would cause serious loss to the company, accessing the two computer systems without authorisation, and disclosing Customers’ Particulars to non-PCCW staff. The above searches conducted by the defendant were not related to his duty and were unauthorised.The ICAC investigation arose from a corruption complaint. Pursuant to legal advice sought from the Department of Justice upon completion of the investigation, the defendant, the team leader and another former employee of PCCW were charged with bribery and other related offences for disclosing Customers’ Particulars of about 4,700 customers.Lau Shing-yan, 36, and Kan Siu-kei, 38, respectively former team leader of PayTV Department and former sales supervisor of Direct Sales Department of PCCW, have their pleas adjourned to January 6, 2023.PCCW had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented ICAC officer Alvin Pang.
16
Nov 2022
Ex-bank employee charged by ICAC with bribery and fraud involving HK$940,000 over client referral and insurance premiumsA former bank employee was charged by the ICAC yesterday (November 15) with accepting a bribe of HK$115,000 from an insurance agent for referring a client, and defrauding two clients of insurance premiums totalling over HK$820,000.Chan Ka-him, 33, former insurance specialist of the Standard Chartered Bank (Hong Kong) Limited (Standard Chartered Bank), faces five charges – one of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO); and three of fraud and one of attempted fraud, contrary to Section 16A of the Theft Ordinance.The defendant was released on ICAC bail, pending his appearance at the Eastern Magistrates’ Courts tomorrow (November 17) for mention.At the material time, the defendant was posted to a branch in Wan Chai. His job duties included the promotion of insurance products of Prudential Hong Kong Limited (Prudential HK) to clients of the bank under a business agreement with the insurer.Standard Chartered Bank did not allow its staff to refer their clients to insurers, including Prudential HK, for taking out insurance products. The bank also did not allow its staff to accept any advantages in relation to its business.On two occasions in January and March 2019, two clients each took out an insurance policy of Prudential HK at Standard Chartered Bank with the assistance of the defendant.The defendant was alleged to have accepted an illegal rebate of HK$115,000 from an insurance agent of Prudential HK in April 2019 for referring one of the above clients to the insurance agent for taking out an insurance policy from Prudential HK directly.It is further alleged that between August and September 2019, the defendant, induced the two clients to authorise the transfer of US$52,300 (about HK$408,000) and over HK$420,000 from their respective bank accounts by falsely representing to assist them in settling premium payments with Prudential HK.Later in October 2019, the defendant allegedly induced Prudential HK to cancel the two insurance policies by falsely representing that the two clients made such applications.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the two abovementioned sums, totalling over HK$820,000, were in fact transferred to a bank account of an associate of the defendant. Moreover, the two clients did not request to cancel their insurance policies.Standard Chartered Bank and Prudential HK have rendered full assistance to the ICAC during its investigation into the case.The ICAC reminds banking practitioners not to accept any advantage for business referral to avoid breaching the POBO. The Commission will continue to collaborate with banks to provide integrity training for their staff. Bank clients are reminded to be cautious and prudent when handling account authorisation.The ICAC provides an array of corruption prevention resources for the banking industry. Information is available on the Hong Kong Business Ethics Development Centre’s website.
15
Nov 2022
Subcontractor inflates delivery fees, sweetens logistics company manager with bribes for HK$1.7m orders charged by ICACA logistics subcontractor was charged by the ICAC today (November 15) for allegedly inflating delivery fees and returning the differences as “sweetener” to bribe a manager of a logistics company for maintaining a good relationship and for the latter showing favour to the subcontractor in outsourcing various delivery orders worth totalling about HK$1.7 million.Liu Kwun-ming, 54, sole director cum shareholder of Fung Wing Logistics Co., Limited (Fung Wing), faces one count of conspiracy for an agent to accept advantages, contrary to Section 9(1)(b) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance. He further faces an alternative charge of conspiracy to defraud, contrary to Common Law.The defendant was released on ICAC bail, pending his appearance in the West Kowloon Magistrates’ Courts on Thursday (November 17) for plea.Since May 2018, Fung Wing had been a subcontractor of Eas Da Tong International Trucking Company (Eas Da Tong) which provided cross-border logistics services to clients of its mother company – Kerry Logistics Network Limited (Kerry Logistics). A manager of another subsidiary of Kerry Logistics was responsible for outsourcing delivery orders to subcontractors.It is alleged that between June 2018 and May 2021, the defendant conspired together with a business partner of him in Fung Wing and the above manager for the manager to accept illegal rebates totalling over Renminbi 120,000 for showing favour to Fung Wing.The alternative charge alleges that during the above period, the defendant conspired together with his business partner and the manager to defraud Eas Da Tong by falsely representing that the haulage charges shown on Fung Wing’s payment reports were accurate, and thus inducing Eas Da Tong to release payments to Fung Wing.During the above period, Eas Da Tong had placed delivery orders worth totalling about HK$1.7 million with Fung Wing.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant had allegedly conspired together with the abovementioned persons to inflate the haulage charges on Fung Wing’s payment reports and returned the price differences totalling over Renminbi 120,000 to the manager.Kerry Logistics has rendered full assistance to the ICAC during its investigation into this case.
14
Nov 2022
Ex-engineer of Airport Authority uses false site supervision records at 3RS Project fire station charged by ICAC with POBO offencesA former engineer of the Airport Authority Hong Kong (Airport Authority) was charged by the ICAC today (November 14) with using various site supervision records containing false statements to mislead the Airport Authority and its fire services facilities design consultant that he had checked soil sampling and fielding testing for the East Fire Station of the Three-runway System Project (3RS Project).Rocky Cheung Lok-on, 40, former Senior Project Engineer of the Airport Authority, faces 13 counts of agent using a document with intent to deceive his principal, contrary to Section 9(3) the Prevention of Bribery Ordinance (POBO). He was released on ICAC bail, pending his appearance in the West Kowloon Magistrates’ Courts on Wednesday (November 16) for plea.At the material time, the Airport Authority engaged AECOM Consulting Services Limited (AECOM) as project consultant for fire services facilities design consultancy services of the 3RS Project. The defendant, then Senior Project Engineer of the Airport Authority, was responsible for managing the consultancy services.Due to manpower shortage, the defendant was also assigned as Technically Competent Person of AECOM to supervise the ground investigation field works for the design of foundation of the East Fire Station of the 3RS Project between late August and mid-December 2020. When the works were carried out, he was required to conduct full-time on-site supervision and to fill in a site supervision record which would be kept in the site for inspection by the Building Department, the Airport Authority and Registered Geotechnical Engineers.The defendant was alleged to have used 13 site supervision records containing false statements to mislead the Airport Authority and AECOM in November and December 2020. It was allegedly falsely stated on those records that the defendant had performed the specific tasks and checked soil sampling and field testing on various dates between September and December 2020.The ICAC investigation arose from a corruption complaint. Enquiries revealed that on the abovementioned dates, in fact the defendant had not carried out his supervision duties to ensure that the sampling and testing were conducted properly for collection of data for compilation of a ground investigation report in support of foundation plans, as typhoon signal number eight was hoisted, or he was on leave or out for meeting.Under Section 9(3) of the POBO, it is an offence for an agent, with intent to deceive his principal, to use a document containing a false statement. An agent could be an employee, and his employer would be his principal.The Airport Authority and AECOM have rendered full assistance to the ICAC during its investigation into the case.

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