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Ethical Decision MakingRecent ICAC Cases
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May 2024Ex-manager of licensed money lender charged by ICAC jailed for 19 months for rebate fraud and laundering $320,000A former manager of a licensed money lender, charged by the ICAC, was today (May 31) sentenced to 19 months’ imprisonment at the West Kowloon Magistrates’ Courts for defrauding the money lender of referral rebates totalling about $320,000 by making false representations that a number of vehicle mortgage loan applications were referred by two intermediaries and laundering crime proceeds.Tsang Kim-wa, 47, former senior marketing manager of Universal (Asia) Credit Limited (Universal Asia), was found guilty of four charges – one of fraud and one of attempted fraud, contrary to Section 16A(1) of the Theft Ordinance and Section 159G(1) of the Crimes Ordinance; and two of conspiracy to deal with property known or reasonably believed to represent proceeds of an indictable offence (commonly known as money laundering), contrary to Section 25(1) of the Organized and Serious Crimes Ordinance and Section 159A(1) of the Crimes Ordinance.In sentencing, Magistrate Mr Pang Leung-ting said the defendant was the mastermind of the scheme who played a pivotal role. Her jail term was reduced to 19 months having considered her guilty plea.The court heard that at the material time, Universal Asia provided vehicle mortgage loans service to its clients. Universal Asia would pay referral rebates to its designated intermediaries upon receipt of business referrals.Between September 2015 and September 2020, the defendant represented to Universal Asia that a car dealer was the referrer of vehicle mortgage loans set out in 22 forms, causing Universal Asia to pay referral rebates totalling over $270,000 to the latter.The ICAC investigation arose from a corruption complaint. Enquiries revealed that all applications concerned were not referred by that car dealer. Through the fraudulent means, the defendant obtained and handled the referral rebates concerned.The defendant also made a similar false representation in another form and attempted to induce Universal Asia to pay referral rebates of about $50,000 to the car dealer. Universal Asia eventually did not process the dubious application.Universal Asia has rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Public Prosecutor Douglas Lau, assisted by ICAC officer Stella Lau. 30
May 2024Ex-bank manager charged by ICAC jailed for 18 months for bribery over account openingA then manager of a bank, charged by the ICAC, was today (May 30) sentenced to 18 months’ imprisonment at the District Court for accepting bribes from various intermediary company representatives to assist non-domestic clients to open personal and corporate accounts with the bank, and using copies of false instruments to falsely represent that the clients were in Hong Kong when they made account opening applications.Lai Chee-wai, 40, then senior relationship manager of The Bank of East Asia, Limited (BEA), earlier pleaded guilty to seven charges – six of conspiracy for an agent to accept advantages, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance; and one of conspiracy to use copies of false instruments, contrary to Sections 74 and 159A of the Crimes Ordinance.In sentencing, Deputy Judge Ms Katherine Lo Kit-yee said the defendant breached the trust placed in him as a bank officer. The complicated plot carried out by the defendant had undermined the stringent account opening policy of the bank. He was more culpable than other co-defendants and deserved a deterrent jail sentence.The offences took place between December 2018 and March 2021. At the material time, Lai was a senior relationship manager of BEA posted to its Admiralty Branch. His duties included opening accounts for clients. Hongkong Hechuang Business Secretary Limited (HKHBS) and Hong Kong Chiying Consulting Co., Limited (HKCC) were intermediary companies proving secretarial services to clients. Chen Baicai was a business consultant of HKHBS while Ke Yingying was an operator of HKCC.The court heard that in late 2019, Chen told Lai that he could refer clients to BEA for opening accounts and would reward Lai $3,000 to $4,000 for his assistance in each successful application. Lai agreed to Chen’s proposal.Chen then sought Lai’s assistance in opening a corporate account for a client and Lai received a reward of $12,000. Afterwards, Chen further asked Lai to open personal accounts for his clients. Lai would accept a reward from $10,000 to $15,000 in return for each successful application.Lai also met with three other operators or representatives of intermediary companies respectively, and agreed to assist clients referred by the trio in opening accounts at BEA. Lai then received a reward from $2,000 to $10,000 for each successful application, involving bribes totalling over $290,000.As BEA required corporate account applicants to attend its branches in person for due diligence purpose, Lai and Ke conspired together to submit to BEA eight copies of false landing slips purportedly issued by the Immigration Department to falsely represent that eight applicants were in Hong Kong when the applications were made. ICAC inquiries revealed that those applicants had not visited Hong Kong at the material time.Chen and Ke were also charged by the ICAC for their roles in the scam. On December 14, 2022, Chen and Ke respectively received a jail term of 12 months and four months after pleading guilty at the District Court to a total of six charges of bribery and using copies of false instruments.BEA had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Acting Senior Public Prosecutor Jason Lau, assisted by ICAC officer Ken Choi.The ICAC has been actively promoting corruption prevention services to banks and enhancing banking practitioners’ knowledge on the anti-corruption laws. The newly launched “Corruption Prevention Guide for Banks” assists banks in managing corruption risks in core operations, including accounts opening. An Ethics Promotion Programme for the Banking Industry was also launched to help bank staff to understand common corruption loopholes.The ICAC reminds members of the public not to bribe bank staff in exchange for its services, otherwise it may constitute breaches of the POBO. They should report to the ICAC immediately should they come across any suspicion of corruption in the organisations. ICAC 24-hour Report Corruption Hotline: 25 266 366. 30
May 2024Ex-subcontractor of WSD charged by ICAC for $4.6m payment fraud over false reservoir inspection reportsThe director of a former subcontractor of the Water Supplies Department (WSD) and three of his employees were charged by the ICAC yesterday (May 29) with conspiracy to defraud by submitting reservoir inspection reports allegedly containing false information to induce the WSD to release service payments totalling about $4.6 million to his company.Lau Ho-kei, 43, sole director-cum-shareholder of Helpful Engineering Company Limited (Helpful Engineering); Li Wing-to, 32, clerk of Helpful Engineering; and Kwok Ka-hay, 39, handyman of Helpful Engineering; jointly face one count of conspiracy to defraud, contrary to Common Law. Kwok Ka-kei, 39, elder brother of Kwok Ka-hay, alone faces one count of conspiracy to defraud.The defendants were released on ICAC bail, pending their appearance at the Sha Tin Magistrates’ Courts tomorrow (May 31) for mention. The prosecution will later apply to transfer the case to the District Court for plea.The offence took place between July 2020 and June 2022. At the material time, the WSD awarded two term contracts to Ming Hing Waterworks Engineering Company Limited (Ming Hing) for providing various waterworks services for the New Territories East District. Helpful Engineering was subcontracted to conduct inspection at around 40 reservoirs in the district to maintain safety and conditions of the reservoirs.The WSD required its subcontractors to assign designated number of teams consisting of three members each to conduct daily inspection. Subcontractors were also required to compile a daily inspection report supported by real-time photographs of waterworks facilities taken during the inspection.Lau, Li and Kwok Ka-hay allegedly conspired together with other employees of Helpful Engineering to defraud the WSD and Ming Hing by falsely representing that the inspections were duly conducted pursuant to the requirements of the WSD and induced the WSD to release service payments totalling about $2.4 million to Helpful Engineering.Kwok Ka-kei also allegedly conspired with Lau to make similar false representations to defraud the WSD and Ming Hing, inducing the WSD to release service payments totalling about $2.2 million to Helpful Engineering.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the date and time of the photographs picturing waterworks facilities had been altered, making false representations that the inspection teams concerned had conducted inspections at the facilities on different days and that each inspection was conducted by three members.The WSD and Ming Hing have rendered full assistance to the ICAC during its investigation into the case. 21
May 2024Ex-bank employee and intermediary charged by ICAC jailed for bribery for expediting account openingA former bank employee and an intermediary, charged by the ICAC, were today (May 21) sentenced to jail terms of six weeks and three weeks respectively at the Eastern Magistrates’ Courts for soliciting and accepting bribes totalling $13,000 to expedite the process of opening personal bank accounts for six clients.Law Tsz-hin, 31, former business sales executive of China Construction Bank (Asia) Corporation Limited (CCB (Asia)), received a jail term of six weeks; while Hu Yi, 39, sole director of Gangchen International Business Consulting (Shenzhen) Company Limited (Gangchen), was jailed for three weeks.Law earlier pleaded guilty to four charges – one of agent soliciting an advantage; two of agent accepting an advantage and one of conspiracy for an agent to accept advantages, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance. Hu pleaded guilty to one count of conspiracy for an agent to accept advantages.In sentencing, Principal Magistrate Miss Ivy Chui Yee-mei remarked that the court had taken into account the defendants’ guilty plea, remorse and various mitigating factors.At the material time, Law was a business sales executive of the Central Branch of CCB (Asia). He was responsible for opening personal bank accounts and answering enquiries from clients. Gangchen was an intermediary company providing commercial secretarial and bank account opening services.The court heard that between late April and mid-May 2023, Law solicited a bribe of $5,000 from a client and accepted bribes totalling $5,000 from two other clients for expediting the trio’s account opening process.During the period, Law also solicited bribes totalling $3,000 from Hu for expediting the account opening process of three clients referred by the latter but he eventually accepted bribes totalling $2,000.CCB (Asia) had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Gary Chan. 17
May 2024Trio charged by ICAC for $1.3m bribery over apartments renovation works and $4.9m money launderingThe ICAC today (May 17) charged a former employee of a property management company for allegedly accepting bribes totalling $1.3 million from a renovation works contractor for showing favour to the latter while his wife was charged with laundering crime proceeds totalling over $4.9 million.Mak Wing-chun, 49, former property officer of the leasing department of New Estate Company Limited (NEC), faces four counts of agent accepting an advantage, contrary to section 9(1)(b) of the Prevention of Bribery Ordinance (POBO).Co-defendant Lee Shing-kan, 75, sole proprietor of Art Land Decoration Co. (Art Land), faces four counts of offering an advantage to an agent, contrary to section 9(2)(b) of the POBO.Mak’s wife Rosetta Kwok Yuen-shan, 47, solicitor, faces five counts of dealing with property known or believed to represent proceeds of an indictable offence, contrary to section 25(1) of the Organized and Serious Crimes Ordinance.The trio were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts next Tuesday (May 21) for mention. The prosecution will later apply to transfer the case to the District Court for plea.In 2008, Mak joined NEC, which owned and managed a portfolio of properties in Hong Kong for lease. At the material time, Mak was a property officer of its leasing department. He was responsible for arranging and overseeing contractors to conduct renovation works at NEC’s properties and certifying completion of the works before releasing payments to contractors.Between November 2020 and June 2022, NEC only awarded renovation works to two contractors. During the period, Art Land solely owned by Lee was released works payments totalling about $26 million.Mak, who arranged and oversaw the renovation works to Art Land, allegedly accepted various bribes totalling $1.3 million from Lee between April and June 2022. Meanwhile, Lee allegedly offered the bribes to Mak for showing favour to Art Land in relation to the arrangement and overseeing of renovation works.The bribery offences were revealed in an investigation by the ICAC stemmed from a corruption complaint.ICAC enquiries also revealed that between January 2019 and July 2022, Mak’s wife Kwok allegedly laundered crime proceeds totalling over $4.9 million through five bank accounts.NEC has rendered full assistance to the ICAC during its investigation into the case.
May 2024Ex-manager of licensed money lender charged by ICAC jailed for 19 months for rebate fraud and laundering $320,000A former manager of a licensed money lender, charged by the ICAC, was today (May 31) sentenced to 19 months’ imprisonment at the West Kowloon Magistrates’ Courts for defrauding the money lender of referral rebates totalling about $320,000 by making false representations that a number of vehicle mortgage loan applications were referred by two intermediaries and laundering crime proceeds.Tsang Kim-wa, 47, former senior marketing manager of Universal (Asia) Credit Limited (Universal Asia), was found guilty of four charges – one of fraud and one of attempted fraud, contrary to Section 16A(1) of the Theft Ordinance and Section 159G(1) of the Crimes Ordinance; and two of conspiracy to deal with property known or reasonably believed to represent proceeds of an indictable offence (commonly known as money laundering), contrary to Section 25(1) of the Organized and Serious Crimes Ordinance and Section 159A(1) of the Crimes Ordinance.In sentencing, Magistrate Mr Pang Leung-ting said the defendant was the mastermind of the scheme who played a pivotal role. Her jail term was reduced to 19 months having considered her guilty plea.The court heard that at the material time, Universal Asia provided vehicle mortgage loans service to its clients. Universal Asia would pay referral rebates to its designated intermediaries upon receipt of business referrals.Between September 2015 and September 2020, the defendant represented to Universal Asia that a car dealer was the referrer of vehicle mortgage loans set out in 22 forms, causing Universal Asia to pay referral rebates totalling over $270,000 to the latter.The ICAC investigation arose from a corruption complaint. Enquiries revealed that all applications concerned were not referred by that car dealer. Through the fraudulent means, the defendant obtained and handled the referral rebates concerned.The defendant also made a similar false representation in another form and attempted to induce Universal Asia to pay referral rebates of about $50,000 to the car dealer. Universal Asia eventually did not process the dubious application.Universal Asia has rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Public Prosecutor Douglas Lau, assisted by ICAC officer Stella Lau. 30
May 2024Ex-bank manager charged by ICAC jailed for 18 months for bribery over account openingA then manager of a bank, charged by the ICAC, was today (May 30) sentenced to 18 months’ imprisonment at the District Court for accepting bribes from various intermediary company representatives to assist non-domestic clients to open personal and corporate accounts with the bank, and using copies of false instruments to falsely represent that the clients were in Hong Kong when they made account opening applications.Lai Chee-wai, 40, then senior relationship manager of The Bank of East Asia, Limited (BEA), earlier pleaded guilty to seven charges – six of conspiracy for an agent to accept advantages, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance; and one of conspiracy to use copies of false instruments, contrary to Sections 74 and 159A of the Crimes Ordinance.In sentencing, Deputy Judge Ms Katherine Lo Kit-yee said the defendant breached the trust placed in him as a bank officer. The complicated plot carried out by the defendant had undermined the stringent account opening policy of the bank. He was more culpable than other co-defendants and deserved a deterrent jail sentence.The offences took place between December 2018 and March 2021. At the material time, Lai was a senior relationship manager of BEA posted to its Admiralty Branch. His duties included opening accounts for clients. Hongkong Hechuang Business Secretary Limited (HKHBS) and Hong Kong Chiying Consulting Co., Limited (HKCC) were intermediary companies proving secretarial services to clients. Chen Baicai was a business consultant of HKHBS while Ke Yingying was an operator of HKCC.The court heard that in late 2019, Chen told Lai that he could refer clients to BEA for opening accounts and would reward Lai $3,000 to $4,000 for his assistance in each successful application. Lai agreed to Chen’s proposal.Chen then sought Lai’s assistance in opening a corporate account for a client and Lai received a reward of $12,000. Afterwards, Chen further asked Lai to open personal accounts for his clients. Lai would accept a reward from $10,000 to $15,000 in return for each successful application.Lai also met with three other operators or representatives of intermediary companies respectively, and agreed to assist clients referred by the trio in opening accounts at BEA. Lai then received a reward from $2,000 to $10,000 for each successful application, involving bribes totalling over $290,000.As BEA required corporate account applicants to attend its branches in person for due diligence purpose, Lai and Ke conspired together to submit to BEA eight copies of false landing slips purportedly issued by the Immigration Department to falsely represent that eight applicants were in Hong Kong when the applications were made. ICAC inquiries revealed that those applicants had not visited Hong Kong at the material time.Chen and Ke were also charged by the ICAC for their roles in the scam. On December 14, 2022, Chen and Ke respectively received a jail term of 12 months and four months after pleading guilty at the District Court to a total of six charges of bribery and using copies of false instruments.BEA had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Acting Senior Public Prosecutor Jason Lau, assisted by ICAC officer Ken Choi.The ICAC has been actively promoting corruption prevention services to banks and enhancing banking practitioners’ knowledge on the anti-corruption laws. The newly launched “Corruption Prevention Guide for Banks” assists banks in managing corruption risks in core operations, including accounts opening. An Ethics Promotion Programme for the Banking Industry was also launched to help bank staff to understand common corruption loopholes.The ICAC reminds members of the public not to bribe bank staff in exchange for its services, otherwise it may constitute breaches of the POBO. They should report to the ICAC immediately should they come across any suspicion of corruption in the organisations. ICAC 24-hour Report Corruption Hotline: 25 266 366. 30
May 2024Ex-subcontractor of WSD charged by ICAC for $4.6m payment fraud over false reservoir inspection reportsThe director of a former subcontractor of the Water Supplies Department (WSD) and three of his employees were charged by the ICAC yesterday (May 29) with conspiracy to defraud by submitting reservoir inspection reports allegedly containing false information to induce the WSD to release service payments totalling about $4.6 million to his company.Lau Ho-kei, 43, sole director-cum-shareholder of Helpful Engineering Company Limited (Helpful Engineering); Li Wing-to, 32, clerk of Helpful Engineering; and Kwok Ka-hay, 39, handyman of Helpful Engineering; jointly face one count of conspiracy to defraud, contrary to Common Law. Kwok Ka-kei, 39, elder brother of Kwok Ka-hay, alone faces one count of conspiracy to defraud.The defendants were released on ICAC bail, pending their appearance at the Sha Tin Magistrates’ Courts tomorrow (May 31) for mention. The prosecution will later apply to transfer the case to the District Court for plea.The offence took place between July 2020 and June 2022. At the material time, the WSD awarded two term contracts to Ming Hing Waterworks Engineering Company Limited (Ming Hing) for providing various waterworks services for the New Territories East District. Helpful Engineering was subcontracted to conduct inspection at around 40 reservoirs in the district to maintain safety and conditions of the reservoirs.The WSD required its subcontractors to assign designated number of teams consisting of three members each to conduct daily inspection. Subcontractors were also required to compile a daily inspection report supported by real-time photographs of waterworks facilities taken during the inspection.Lau, Li and Kwok Ka-hay allegedly conspired together with other employees of Helpful Engineering to defraud the WSD and Ming Hing by falsely representing that the inspections were duly conducted pursuant to the requirements of the WSD and induced the WSD to release service payments totalling about $2.4 million to Helpful Engineering.Kwok Ka-kei also allegedly conspired with Lau to make similar false representations to defraud the WSD and Ming Hing, inducing the WSD to release service payments totalling about $2.2 million to Helpful Engineering.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the date and time of the photographs picturing waterworks facilities had been altered, making false representations that the inspection teams concerned had conducted inspections at the facilities on different days and that each inspection was conducted by three members.The WSD and Ming Hing have rendered full assistance to the ICAC during its investigation into the case. 21
May 2024Ex-bank employee and intermediary charged by ICAC jailed for bribery for expediting account openingA former bank employee and an intermediary, charged by the ICAC, were today (May 21) sentenced to jail terms of six weeks and three weeks respectively at the Eastern Magistrates’ Courts for soliciting and accepting bribes totalling $13,000 to expedite the process of opening personal bank accounts for six clients.Law Tsz-hin, 31, former business sales executive of China Construction Bank (Asia) Corporation Limited (CCB (Asia)), received a jail term of six weeks; while Hu Yi, 39, sole director of Gangchen International Business Consulting (Shenzhen) Company Limited (Gangchen), was jailed for three weeks.Law earlier pleaded guilty to four charges – one of agent soliciting an advantage; two of agent accepting an advantage and one of conspiracy for an agent to accept advantages, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance. Hu pleaded guilty to one count of conspiracy for an agent to accept advantages.In sentencing, Principal Magistrate Miss Ivy Chui Yee-mei remarked that the court had taken into account the defendants’ guilty plea, remorse and various mitigating factors.At the material time, Law was a business sales executive of the Central Branch of CCB (Asia). He was responsible for opening personal bank accounts and answering enquiries from clients. Gangchen was an intermediary company providing commercial secretarial and bank account opening services.The court heard that between late April and mid-May 2023, Law solicited a bribe of $5,000 from a client and accepted bribes totalling $5,000 from two other clients for expediting the trio’s account opening process.During the period, Law also solicited bribes totalling $3,000 from Hu for expediting the account opening process of three clients referred by the latter but he eventually accepted bribes totalling $2,000.CCB (Asia) had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Gary Chan. 17
May 2024Trio charged by ICAC for $1.3m bribery over apartments renovation works and $4.9m money launderingThe ICAC today (May 17) charged a former employee of a property management company for allegedly accepting bribes totalling $1.3 million from a renovation works contractor for showing favour to the latter while his wife was charged with laundering crime proceeds totalling over $4.9 million.Mak Wing-chun, 49, former property officer of the leasing department of New Estate Company Limited (NEC), faces four counts of agent accepting an advantage, contrary to section 9(1)(b) of the Prevention of Bribery Ordinance (POBO).Co-defendant Lee Shing-kan, 75, sole proprietor of Art Land Decoration Co. (Art Land), faces four counts of offering an advantage to an agent, contrary to section 9(2)(b) of the POBO.Mak’s wife Rosetta Kwok Yuen-shan, 47, solicitor, faces five counts of dealing with property known or believed to represent proceeds of an indictable offence, contrary to section 25(1) of the Organized and Serious Crimes Ordinance.The trio were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts next Tuesday (May 21) for mention. The prosecution will later apply to transfer the case to the District Court for plea.In 2008, Mak joined NEC, which owned and managed a portfolio of properties in Hong Kong for lease. At the material time, Mak was a property officer of its leasing department. He was responsible for arranging and overseeing contractors to conduct renovation works at NEC’s properties and certifying completion of the works before releasing payments to contractors.Between November 2020 and June 2022, NEC only awarded renovation works to two contractors. During the period, Art Land solely owned by Lee was released works payments totalling about $26 million.Mak, who arranged and oversaw the renovation works to Art Land, allegedly accepted various bribes totalling $1.3 million from Lee between April and June 2022. Meanwhile, Lee allegedly offered the bribes to Mak for showing favour to Art Land in relation to the arrangement and overseeing of renovation works.The bribery offences were revealed in an investigation by the ICAC stemmed from a corruption complaint.ICAC enquiries also revealed that between January 2019 and July 2022, Mak’s wife Kwok allegedly laundered crime proceeds totalling over $4.9 million through five bank accounts.NEC has rendered full assistance to the ICAC during its investigation into the case.