Recent ICAC Cases


16
Aug 2022
Four charged by ICAC over $13 million mortgage loan fraudFour mortgage loan applicants were charged by the ICAC today (August 16) in separate cases for allegedly defrauding a financial services company into granting them loans totalling about $13 million by making false representations about their occupations and salaries.The defendants are four mortgage loan applicants, aged between 49 and 57. Cheung Leung, Pang Suet-yin, Yeung Pui-hung, and Johnson Szeto Keung-sang, face a total of five counts of fraud, contrary to Section 16A(1) of the Theft Ordinance.They were released on ICAC bail, pending their appearance in the Eastern Magistrates’ Courts on Thursday (August 18) for plea.The ICAC investigation arose from a corruption complaint. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charging the four persons.The first three cases involving Cheung, Pang and Yeung allegedly took place between June 2018 and January 2019. During the period the trio applied for mortgage loans with OCBC Wing Hang Credit Limited (Wing Hang Credit) through two financial intermediaries.The charges allege the trio, together with other persons, falsely represented to Wing Hang Credit that they were respectively senior managers of a company and an education centre, and a manager of a logistics company with monthly salaries ranged from $85,000 to $150,000 and with intent to defraud, induced Wing Hang Credit to approve their applications for three mortgage loans ranged from $1.7 million to about $3.8 million, which resulted in benefit to them, or in prejudice to Wing Hang Credit.The case of Szeto allegedly occurred between May and August 2018. At the material time, Szeto applied for a mortgage loan and a decoration loan for a property owned by his father with Wing Hang Credit through another financial intermediary.The two charges allege that Szeto, together with other persons, falsely represented to Wing Hang Credit that he was an engineering director of an engineering company with a monthly salary of over $200,000 and with intent to defraud, induced Wing Hang Credit to approve a mortgage loan of $3.1 million and a decoration loan of $800,000 to him, which resulted in benefit to Szeto, or in prejudice to Wing Hang Credit.Wing Hang Credit has rendered full assistance to the Commission during its investigation into the case.
12
Aug 2022
Ex-money exchange branch manager charged by ICAC admits using false documents over $7.5m remittanceA former branch manager of a currency exchange company, charged by the ICAC, today (August 12) admitted at the West Kowloon Magistrates’ Courts that he had used remittance application forms containing false information to deceive the company that a customer had settled the remittance amount in full before remitting a total of over $7.5 million.Au Yeung Hin, 28, former branch manager of Hui’s Brothers Foreign Currency Exchange Company Limited (Hui’s Brothers), pleaded guilty to nine counts of agent using document with intent to deceive his principal, contrary to Section 9(3) of the Prevention of Bribery Ordinance. The prosecution offered no evidence to another similar charge against him.Deputy Magistrate Mr Tsang Hing-tung adjourned the case to August 26 for sentence, pending the defendant’s background report and remanded him in the custody of the Correctional Services Department.At the material time, the defendant was a branch manager of Hui’s Brothers. He was responsible for overseeing the operation of a branch in Tsuen Wan. When handling a remittance, staff members of the branch were required to submit to Hui’s Brother a remittance application form containing details of a remittance. According to the company’s policy, a remittance would only be processed after a customer had settled the remittance amount in full.The court heard that on nine occasions between November 23, 2020 and January 4, 2021, the defendant submitted a total of 16 remittance application forms to Hui’s Brothers requesting to remit a total of over $7.5 million for a customer. On each of the application forms, the defendant falsely stated that the remittance amount had been settled by cash by the customer.The ICAC inquiries revealed that the customer had only made a partial payment to Hui’s Brothers after each remittance was handled but not settling the remittance amount in full in advance. Had Hui’s Brothers known of it, the company would not have processed the remittance applications. As of January 4, 2021, the customer still owed Hui’s Brothers an outstanding amount of over $2 million.Hui’s Brothers had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officers Wily Chan and Jayne Woo.
11
Aug 2022
Ex-button manufacturer co-owner and insurance agent charged by ICAC over inflated premium fraudA former co-owner of a button manufacturer and an insurance agent were charged by the ICAC today (August 11) for allegedly conspiring together to deceive the manufacturer into renewing its products liability insurance policies at inflated annual premiums for six years involving a total of over $470,000.Leung Kwok-wai, 46, former co-owner of Dmark Metal Button Company Limited (Dmark); and Luk Kam-wai, 60, insurance agent of AIG Insurance Hong Kong Limited (AIG); jointly face six counts of conspiracy to defraud, contrary to Common Law.The defendants were released on ICAC bail, pending their appearance in the Eastern Magistrates’ Courts next Monday (August 15) for plea.The ICAC investigation arose from a corruption complaint referred by the Insurance Authority (IA). Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charging the two defendants.The offences took place between October 2013 and November 2018. At the material time, Leung was a co-owner of Dmark holding half of its shares. Luk was the handling agent of Dmark’s products liability insurance policy taken out with AIG.During the period, AIG issued six renewal quotations to Luk for the annual renewal of Dmark’s policy. According to the policy of AIG, Luk was allowed to collect premium payments from Dmark on behalf of AIG, deduct his relevant commissions, and return the remaining sum to the insurer.The charges allege that Leung and Luk conspired together to defraud Dmark by dishonestly falsely representing that the premiums for products liability insurance policies taken out by Dmark with AIG between 2013 and 2019 were over $470,000 in total, thereby causing and inducing Dmark to pay the premiums to a company of Luk.The ICAC investigation revealed that at the material time, Luk had allegedly overstated the premiums concerned by over $170,000 in total and passed the sums to Leung.The IA and AIG have rendered full assistance to the ICAC during its investigation into the case.
08
Aug 2022
Two ex-insurance agents charged by ICAC sentenced for $700,000 commission and compensation fraudTwo former insurance agents, charged by the ICAC, were respectively sentenced to 18 months’ jail and 160 hours of community service at the District Court today (August 5) for deceiving an insurer into releasing commissions and compensation totalling about $700,000 by making false representations on the occupations and incomes of nine insurance policy applicants, and falsely representing that they were injured after the insurance policies were successfully taken out.Leung King-kei 36, former insurance agent of AIA International Limited (AIA), was sentenced to 18 months’ imprisonment. He earlier pleaded guilty to five counts of fraud, contrary to Section 16A of the Theft Ordinance; and four counts of conspiracy to defraud, contrary to Common Law.Co-defendant Yu Shing-yin, 36, former insurance agent of AIA, who earlier pleaded guilty to one count of conspiracy to defraud jointly charged with Leung, was today ordered to perform 160 hours of community service.Judge Mr Gary Lam Kar-yan reprimanded the defendants for their breach of trust. In sentencing Leung, the judge said he took a starting point of 30 months’ imprisonment and reduced the jail term to 18 months having considered Leung’s guilty plea and repayment to his former employer. A community service order was imposed on Yu in view of the relatively minor role he played in the scam.The court heard that AIA provided different insurance products to its clients. When processing an application for taking out an insurance policy, AIA would consider the client’s occupation, annual income and medical history, etc.The offences took place between July 2016 and July 2018. At the material time, Leung was an insurance agent of AIA. After being promoted to unit manager in December 2017, he was entitled to receive overriding commissions. Yu was Leung’s down-line insurance agent.The court heard that Leung had alone or conspired together with Yu, another down-line insurance agent and four policyholders to defraud AIA by making false representations on the occupations of the policyholders and monthly incomes of nine policyholders in nine insurance policy applications.AIA approved the nine insurance policy applications and paid commissions totalling about $95,000 to Leung and his down-line insurance agents.ICAC investigation revealed that false representations were made on the policyholders’ injuries in the relevant insurance claims, causing AIA to release insurance compensations totalling about $600,000 to the policyholders.The investigation arose from a corruption complaint filed with the ICAC. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charging Leung and Yu. Some of the above policyholders and down-line insurance agents were earlier charged by the ICAC in separate cases and pleaded guilty to their respective charges. Their cases are adjourned to mid-August for sentence.AIA had rendered full assistance to the ICAC during its investigation.The prosecution was today represented by Public Prosecutor Caddy Mo, assisted by ICAC officer Keaton Ma.The ICAC will continue to join hands with the industry to promote integrity and anti-corruption messages to insurers and insurance practitioners. In collaboration with the industry, the Commission had produced a guidebook which assisted insurers to strengthen their corruption prevention capabilities in key operational areas such as verification of commissions and claims.ICAC’s dedicated webpage tailor-made for the insurance industry“Corruption Prevention Guide for Insurance Companies”
04
Aug 2022
Ex-manager of insurance broker charged by ICAC admits referral fee fraudA former sales manager of an insurance broker, charged by the ICAC, today (August 4) admitted at the Eastern Magistrates’ Courts that she had induced the firm into paying referral fees totalling over $19,000 to her husband by making false representations that he was the referrer of 18 insurances policies taken out by clients.Anny Pang Wai-chun, 52, former sales manager of Cinergy Insurance Services Limited (Cinergy), pleaded guilty to seven counts of fraud, contrary to Section 16A of the Theft Ordinance. The prosecution offered no evidence to three similar charges against her.Principal Magistrate Ms Ada Yim Shun-yee adjourned the case to August 18 for sentence, pending the defendant’s background and community service order reports. The defendant was remanded in the custody of the Correctional Services Department.The court heard that at the material time, Cinergy was an insurance broker which assisted clients in taking out various insurance policies, including employees’ compensation, public liability and vehicles insurance. For insurance policies successfully taken out, Cinergy would receive commissions from the relevant insurance companies.Cinergy allowed its sales managers to recruit referrers for client referral. For each successful referral, Cinergy would pay the referrer a referral fee. In April 2018, the defendant recruited her husband as a referrer.The defendant admitted that between July 2018 and August 2020, she had falsely represented to Cinergy that her husband was the referrer of 18 policies taken out by seven policyholders. As a result, Cinergy was induced to pay referral fees totalling over $19,000 to the defendant’s husband.ICAC investigation revealed that the above policyholders, who did not know the defendant’s husband, had only contacted the defendant in respect of their insurance applications. Had Cinergy known that the defendant’s husband had not referred those policyholders to the firm, it would not pay him any referral fees in relation to the policies taken out.The ICAC investigation arose from a corruption complaint. Cinergy had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Beta Leung.

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