Integrity Focus
Menu
Recent ICAC Cases Anti-Corruption Laws in Hong Kong Corruption Myths Cross-Boundary Business Operations Conflict of Interest
What is conflict of interest? Examples of conflict of interest Problems arising from conflict of interest How to handle conflict of interest? How well are we managing conflict of interest?
Ethical Decision MakingRecent ICAC Cases
05
Oct 2023Man charged by ICAC in court for bribing bank employee over account openingA man appeared in the Tuen Mun Magistrates’ Courts today (October 5) for mention after being charged by the ICAC with bribing a bank employee for opening a personal bank account.Wan Liang, 39, faced one count of offering an advantage to an agent, contrary to section 9(2)(a) of the Prevention of Bribery Ordinance.No plea was taken today. Magistrate Mr Raymond Wong Kwok-fai adjourned the case to November 16 for mention. The defendant was granted bail.On October 26, 2019, the defendant visited a branch of The Hongkong and Shanghai Banking Corporation Limited (HSBC) in Yuen Long for opening a personal bank account and was received by a universal banker.The defendant allegedly resorted to offering a bribe of an unspecified amount to the universal banker for opening a personal bank account for him since he failed to provide HSBC with any supporting documents in respect of the source of the funds for opening a bank account. The bank employee immediately rejected the defendant’s bribery offer and reported the matter to the bank. The defendant’s account opening application was rejected by HSBC on the same day and he left Hong Kong subsequently.The ICAC investigation arose from a corruption complaint. The defendant was arrested yesterday (October 4) when he visited Hong Kong again and was charged by the ICAC this morning.HSBC had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Gary Li.The ICAC reminds the general public not to bribe bank staff in exchange for its services. The ICAC has recently launched the “Corruption Prevention Guide for Banks” to enhance the corruption prevention capabilities of banks and assist banks in managing corruption risks in core operations including account opening and referral of client. To promote probity culture in the banking sector, an Ethics Promotion Programme for the Banking Industry was also launched to help managerial and other ranks of bank staff understand common corruption loopholes. 05
Oct 2023Property buyer charged by ICAC over $8m mortgage loan fraudIn the course of a corruption investigation by the ICAC, it was revealed that a property buyer had allegedly induced a bank not to demand repayment of a mortgage loan of over $8 million granted to her, meeting the owner-occupied requirement, with a loan-to-value (LTV) ratio of 80 per cent by concealing from the bank that the property was leased out. The property buyer was charged with fraud yesterday (October 4).Wong Hin-ning, 48, insurance agent, faces two counts of fraud, contrary to Section 16A of the Theft Ordinance. She was released on ICAC bail, pending her appearance at the Eastern Magistrates’ Courts tomorrow (October 6) for mention. The prosecution will apply for transferring the case to the District Court for plea.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) is a participating bank in the mortgage insurance programme of the HKMC Insurance Limited (HKMCI) (the Programme), which provides 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.In late February 2020, the defendant purchased a private residential property in Ho Man Tin at $9.98 million on behalf of his son who was abroad. A few days later, she applied for a mortgage loan with an LTV of 80 per cent with CNCBI under the Programme and declared that the property would be occupied by her and her son.The defendant signed a declaration in the mortgage loan application form 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 to the defendant in late June 2020.It is alleged that between August 2020 and June 2022, the property was leased out to two tenants at a monthly rental of $19,000 and $20,500 respectively, but the defendant failed to inform CNCBI of a change in the occupancy status of the property in Ho Man Tin, and with intent to defraud, induced CNCBI not to demand repayment of part or all of the mortgage loan granted to her or impose other conditions, including an increase in the interest rate.CNCBI and the HKMCI have rendered full assistance to the ICAC during its investigation into the case. 04
Oct 2023Property agent charged by ICAC guilty of bribery over claw machine shop’s rent concessions in pandemicA property agent charged by the ICAC was today (October 4) convicted at the Kowloon City Magistrates’ Courts of soliciting and accepting bribes totalling $41,000 for assisting a tenant operating a claw machine shop to negotiate with the landlord for rent concessions and lease renewal during the COVID-19 pandemic.Chung Sau-man, 57, former property agent of Land Master & Associates (Shop) Limited (Land Master), was found guilty of six charges – three of agent accepting an advantage and one of agent soliciting for an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance; and two of incitement to furnish false information, contrary to the Common Law and section 19(1)(b) of the Theft Ordinance.Magistrate Mr Jacky Ip Kai-leung adjourned the case to October 19 for sentence, pending Chung’s background report. Chung was remanded in the custody of the Correctional Services Department.At the material time, Chung was a property agent of Land Master. Apart from procuring property transactions, she was responsible for providing post-transaction services to clients, including assisting them in the negotiation of rental adjustment or renewal of tenancy agreement. In general, Land Master would not charge its clients for the post-transaction services provided.The court heard that a tenant rented a shop in Mong Kok for operating claw machine business at a monthly rental of $140,000 for a year starting from December 2019. Chung was the handling agent of the lease transaction. In view of the pandemic situation, the tenant had requested Chung to assist in the negotiations with the landlord on rent concession since late March 2020.On various occasions between May and September 2020, Chung informed the tenant that the landlord had agreed to reduce the monthly rental of the shop, each ranging from a rental of 10 days to half of its monthly rental. Chung solicited a bribe from the tenant on each occasion and kept urging the latter to pay bribes despite the fact that her solicitation was repeatedly turned down. She eventually accepted three bribes totalling $21,000 from the tenant.In October 2020, the tenant also engaged Chung to negotiate with the landlord for renewing the lease. The rent was eventually renewed by the landlord for a year and Chung further solicited a bribe of $20,000 from the tenant.The court also heard that Chung gave five false receipts purportedly issued by a renovation contractor to the tenant and incited the tenant to use the receipts for the accounting purpose so as to cover up the bribe payments. The tenant did not use those receipts.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Land Master had never approved Chung to accept any rewards from the tenant, while the tenant had never engaged the renovation contractor, which was dissolved at the material time, to provide any services.Chung’s male associate, Ng Chi-hung, 58, estate agent, was also charged by the ICAC for falsifying three of the aforesaid receipts to facilitate Chung’s acceptance of bribes. He earlier pleaded guilty to one count of false accounting, and was sentenced to 160 hours of community service order.Land Master had rendered full assistance to the Commission during its investigation into the case.The prosecution was today represented by prosecuting counsel Joe Chan, assisted by ICAC officers Jacky Yeung and Aaron Tsui. 03
Oct 2023Property buyer charged by ICAC guilty of $7.8m mortgage loan fraudA property buyer, charged by the ICAC, was today (October 3) convicted at the District Court of deceiving a bank and the HKMC Insurance Limited (HKMCI) into granting a mortgage loan with a loan-to-value (LTV) ratio of 80 per cent, amounting to about $7.8 million, by making false representations that a flat was purchased for self-use. The offences were revealed in the course of a corruption investigation by the ICAC.Hui Chi-fung, 39, Senior Station Officer of the Fire Services Department, was found guilty of two counts of fraud, contrary to section 16A of the Theft Ordinance.Deputy Judge Mr Kenneth Chan Ping-chau granted bail to the defendant until October 10 for sentence.According to the guidelines issued by the Hong Kong Monetary Authority, banks are required to comply with the LTV ratio requirement for property mortgage lending. Banks participating in the mortgage insurance programme of the HKMCI (the Programme) can provide a mortgage loan with an LTV ratio of up to 80 per cent for a self-used private residential property valued between $6 million and $10 million. Industrial and Commercial Bank of China (Asia) Limited (ICBC Asia) is a participating bank.In April 2020, the defendant purchased a residential property in San Po Kong at $9.65 million and applied for a mortgage loan with an LTV ratio of 80 per cent with ICBC Asia under the Programme.The court heard that between April and July 2020, the defendant made false representations to ICBC Asia and the HKMCI that the above residential property would be occupied for his self-use after completion of the purchase. The HKMCI eventually approved the application for mortgage loan insurance cover in respect of the mortgage loan.On July 6, 2020, ICBC Asia approved the mortgage loan application and granted the defendant a loan of about $7.8 million. The defendant completed the sale and purchase of the property on the same day.The ICAC investigation arose from a corruption complaint. Enquiries revealed that on the same day when the mortgage loan application was approved by ICBC Asia, the defendant entrusted an estate agency to lease out the property, which was successfully leased out at a monthly rental of over $21,000 two days later. The defendant and his family in fact had never resided in the property.Had ICBC Asia and the HKMCI known that the property was not for the defendant’s self-occupancy, they would not have approved the defendant’s applications for the mortgage loan and the mortgage loan insurance cover respectively.ICBC Asia and the HKMCI had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Susanna Ku, assisted by ICAC officer Christine Chiu. 27
Sep 2023Merchant guilty of impersonating ICAC officer and perversionA merchant, charged by the ICAC, was today (September 27) convicted at the West Kowloon Magistrates’ Courts of impersonating an ICAC officer to request three clinic staff to verify the medical certificates of a man. He was further found guilty of perversion by uploading five closed circuit television (CCTV) footages in respect of the case onto a social media platform before the trial, alleging that prosecution witnesses had fabricated the footages against him.Tam Wing-park, 67, merchant, was found guilty of a total of eight charges – three of falsely pretending to be an officer of the ICAC, contrary to section 13C(a) of the Independent Commission Against Corruption Ordinance; and five of perverting the course of public justice, contrary to the Common Law.Magistrate Mr Tsang Hing-tung adjourned the case to October 11 for sentence, pending the defendant’s background and psychiatric reports. The defendant was remanded in the custody of the Correctional Services Department.In July 2017, the girlfriend of the defendant was involved in a traffic collision with another driver, who subsequently attended medical treatments at a clinic and was issued four medical certificates. Afterwards, the employer of the driver initiated a civil claim against the girlfriend and she was ordered by the Small Claim Tribunal to compensate the driver’s employer in October 2021.The court heard that on November 5, 2021, the defendant addressed himself as an ICAC officer in the phone conversations with two receptionists and a director of the above clinic and requested to verify the four medical certificates. The director had requested the defendant to provide his ICAC staff number, office phone number, etc. for identity verification, but the defendant did not accede to the request.The defendant had never been an officer of the ICAC and he was charged by the ICAC with three counts of falsely pretending to be an officer of the ICAC on October 19, 2022. He pleaded not guilty to the charges in court on December 16, 2022.The prosecution served the defendant with the relevant trial materials, including relevant CCTV footages of the clinic concerned, bearing a watermark “Defence Copy”, capturing images and voices of various prosecution witnesses.The court heard that before the trial of the impersonation of ICAC officer case, the defendant, with intent to pervert the course of public justice, uploaded five video clips onto a social media platform. The video clips mentioned five of the prosecution witnesses of the case and contained assertions that the five people had fabricated CCTV footages for the prosecution against the defendant.ICAC enquiries revealed that the video clips contained CCTV footages of the clinic bearing a watermark “Defence Copy”. Personal particulars of the prosecution witnesses were also mentioned in the video clips. On March 16, 2023, the defendant was charged by the ICAC with five counts of perverting the course of public justice.The clinic concerned had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Lawrence Hui, assisted by ICAC officer Kenix Poon.The ICAC reminds the public that impersonating an ICAC officer is a serious crime. Anyone who commits the offence is liable on conviction to a maximum penalty of one-year imprisonment and a fine of $25,000. Should members of the public have queries about the identity of any ICAC officers who approach them, they should call the ICAC 24-hour Report Corruption Hotline (852) 25 266 366.An ICAC spokesperson stresses that the Commission would not tolerate any acts perverting the course of public justice. The ICAC would follow up on such illegal acts in a serious manner should they be found in its cases.
Oct 2023Man charged by ICAC in court for bribing bank employee over account openingA man appeared in the Tuen Mun Magistrates’ Courts today (October 5) for mention after being charged by the ICAC with bribing a bank employee for opening a personal bank account.Wan Liang, 39, faced one count of offering an advantage to an agent, contrary to section 9(2)(a) of the Prevention of Bribery Ordinance.No plea was taken today. Magistrate Mr Raymond Wong Kwok-fai adjourned the case to November 16 for mention. The defendant was granted bail.On October 26, 2019, the defendant visited a branch of The Hongkong and Shanghai Banking Corporation Limited (HSBC) in Yuen Long for opening a personal bank account and was received by a universal banker.The defendant allegedly resorted to offering a bribe of an unspecified amount to the universal banker for opening a personal bank account for him since he failed to provide HSBC with any supporting documents in respect of the source of the funds for opening a bank account. The bank employee immediately rejected the defendant’s bribery offer and reported the matter to the bank. The defendant’s account opening application was rejected by HSBC on the same day and he left Hong Kong subsequently.The ICAC investigation arose from a corruption complaint. The defendant was arrested yesterday (October 4) when he visited Hong Kong again and was charged by the ICAC this morning.HSBC had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Gary Li.The ICAC reminds the general public not to bribe bank staff in exchange for its services. The ICAC has recently launched the “Corruption Prevention Guide for Banks” to enhance the corruption prevention capabilities of banks and assist banks in managing corruption risks in core operations including account opening and referral of client. To promote probity culture in the banking sector, an Ethics Promotion Programme for the Banking Industry was also launched to help managerial and other ranks of bank staff understand common corruption loopholes. 05
Oct 2023Property buyer charged by ICAC over $8m mortgage loan fraudIn the course of a corruption investigation by the ICAC, it was revealed that a property buyer had allegedly induced a bank not to demand repayment of a mortgage loan of over $8 million granted to her, meeting the owner-occupied requirement, with a loan-to-value (LTV) ratio of 80 per cent by concealing from the bank that the property was leased out. The property buyer was charged with fraud yesterday (October 4).Wong Hin-ning, 48, insurance agent, faces two counts of fraud, contrary to Section 16A of the Theft Ordinance. She was released on ICAC bail, pending her appearance at the Eastern Magistrates’ Courts tomorrow (October 6) for mention. The prosecution will apply for transferring the case to the District Court for plea.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) is a participating bank in the mortgage insurance programme of the HKMC Insurance Limited (HKMCI) (the Programme), which provides 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.In late February 2020, the defendant purchased a private residential property in Ho Man Tin at $9.98 million on behalf of his son who was abroad. A few days later, she applied for a mortgage loan with an LTV of 80 per cent with CNCBI under the Programme and declared that the property would be occupied by her and her son.The defendant signed a declaration in the mortgage loan application form 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 to the defendant in late June 2020.It is alleged that between August 2020 and June 2022, the property was leased out to two tenants at a monthly rental of $19,000 and $20,500 respectively, but the defendant failed to inform CNCBI of a change in the occupancy status of the property in Ho Man Tin, and with intent to defraud, induced CNCBI not to demand repayment of part or all of the mortgage loan granted to her or impose other conditions, including an increase in the interest rate.CNCBI and the HKMCI have rendered full assistance to the ICAC during its investigation into the case. 04
Oct 2023Property agent charged by ICAC guilty of bribery over claw machine shop’s rent concessions in pandemicA property agent charged by the ICAC was today (October 4) convicted at the Kowloon City Magistrates’ Courts of soliciting and accepting bribes totalling $41,000 for assisting a tenant operating a claw machine shop to negotiate with the landlord for rent concessions and lease renewal during the COVID-19 pandemic.Chung Sau-man, 57, former property agent of Land Master & Associates (Shop) Limited (Land Master), was found guilty of six charges – three of agent accepting an advantage and one of agent soliciting for an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance; and two of incitement to furnish false information, contrary to the Common Law and section 19(1)(b) of the Theft Ordinance.Magistrate Mr Jacky Ip Kai-leung adjourned the case to October 19 for sentence, pending Chung’s background report. Chung was remanded in the custody of the Correctional Services Department.At the material time, Chung was a property agent of Land Master. Apart from procuring property transactions, she was responsible for providing post-transaction services to clients, including assisting them in the negotiation of rental adjustment or renewal of tenancy agreement. In general, Land Master would not charge its clients for the post-transaction services provided.The court heard that a tenant rented a shop in Mong Kok for operating claw machine business at a monthly rental of $140,000 for a year starting from December 2019. Chung was the handling agent of the lease transaction. In view of the pandemic situation, the tenant had requested Chung to assist in the negotiations with the landlord on rent concession since late March 2020.On various occasions between May and September 2020, Chung informed the tenant that the landlord had agreed to reduce the monthly rental of the shop, each ranging from a rental of 10 days to half of its monthly rental. Chung solicited a bribe from the tenant on each occasion and kept urging the latter to pay bribes despite the fact that her solicitation was repeatedly turned down. She eventually accepted three bribes totalling $21,000 from the tenant.In October 2020, the tenant also engaged Chung to negotiate with the landlord for renewing the lease. The rent was eventually renewed by the landlord for a year and Chung further solicited a bribe of $20,000 from the tenant.The court also heard that Chung gave five false receipts purportedly issued by a renovation contractor to the tenant and incited the tenant to use the receipts for the accounting purpose so as to cover up the bribe payments. The tenant did not use those receipts.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Land Master had never approved Chung to accept any rewards from the tenant, while the tenant had never engaged the renovation contractor, which was dissolved at the material time, to provide any services.Chung’s male associate, Ng Chi-hung, 58, estate agent, was also charged by the ICAC for falsifying three of the aforesaid receipts to facilitate Chung’s acceptance of bribes. He earlier pleaded guilty to one count of false accounting, and was sentenced to 160 hours of community service order.Land Master had rendered full assistance to the Commission during its investigation into the case.The prosecution was today represented by prosecuting counsel Joe Chan, assisted by ICAC officers Jacky Yeung and Aaron Tsui. 03
Oct 2023Property buyer charged by ICAC guilty of $7.8m mortgage loan fraudA property buyer, charged by the ICAC, was today (October 3) convicted at the District Court of deceiving a bank and the HKMC Insurance Limited (HKMCI) into granting a mortgage loan with a loan-to-value (LTV) ratio of 80 per cent, amounting to about $7.8 million, by making false representations that a flat was purchased for self-use. The offences were revealed in the course of a corruption investigation by the ICAC.Hui Chi-fung, 39, Senior Station Officer of the Fire Services Department, was found guilty of two counts of fraud, contrary to section 16A of the Theft Ordinance.Deputy Judge Mr Kenneth Chan Ping-chau granted bail to the defendant until October 10 for sentence.According to the guidelines issued by the Hong Kong Monetary Authority, banks are required to comply with the LTV ratio requirement for property mortgage lending. Banks participating in the mortgage insurance programme of the HKMCI (the Programme) can provide a mortgage loan with an LTV ratio of up to 80 per cent for a self-used private residential property valued between $6 million and $10 million. Industrial and Commercial Bank of China (Asia) Limited (ICBC Asia) is a participating bank.In April 2020, the defendant purchased a residential property in San Po Kong at $9.65 million and applied for a mortgage loan with an LTV ratio of 80 per cent with ICBC Asia under the Programme.The court heard that between April and July 2020, the defendant made false representations to ICBC Asia and the HKMCI that the above residential property would be occupied for his self-use after completion of the purchase. The HKMCI eventually approved the application for mortgage loan insurance cover in respect of the mortgage loan.On July 6, 2020, ICBC Asia approved the mortgage loan application and granted the defendant a loan of about $7.8 million. The defendant completed the sale and purchase of the property on the same day.The ICAC investigation arose from a corruption complaint. Enquiries revealed that on the same day when the mortgage loan application was approved by ICBC Asia, the defendant entrusted an estate agency to lease out the property, which was successfully leased out at a monthly rental of over $21,000 two days later. The defendant and his family in fact had never resided in the property.Had ICBC Asia and the HKMCI known that the property was not for the defendant’s self-occupancy, they would not have approved the defendant’s applications for the mortgage loan and the mortgage loan insurance cover respectively.ICBC Asia and the HKMCI had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Susanna Ku, assisted by ICAC officer Christine Chiu. 27
Sep 2023Merchant guilty of impersonating ICAC officer and perversionA merchant, charged by the ICAC, was today (September 27) convicted at the West Kowloon Magistrates’ Courts of impersonating an ICAC officer to request three clinic staff to verify the medical certificates of a man. He was further found guilty of perversion by uploading five closed circuit television (CCTV) footages in respect of the case onto a social media platform before the trial, alleging that prosecution witnesses had fabricated the footages against him.Tam Wing-park, 67, merchant, was found guilty of a total of eight charges – three of falsely pretending to be an officer of the ICAC, contrary to section 13C(a) of the Independent Commission Against Corruption Ordinance; and five of perverting the course of public justice, contrary to the Common Law.Magistrate Mr Tsang Hing-tung adjourned the case to October 11 for sentence, pending the defendant’s background and psychiatric reports. The defendant was remanded in the custody of the Correctional Services Department.In July 2017, the girlfriend of the defendant was involved in a traffic collision with another driver, who subsequently attended medical treatments at a clinic and was issued four medical certificates. Afterwards, the employer of the driver initiated a civil claim against the girlfriend and she was ordered by the Small Claim Tribunal to compensate the driver’s employer in October 2021.The court heard that on November 5, 2021, the defendant addressed himself as an ICAC officer in the phone conversations with two receptionists and a director of the above clinic and requested to verify the four medical certificates. The director had requested the defendant to provide his ICAC staff number, office phone number, etc. for identity verification, but the defendant did not accede to the request.The defendant had never been an officer of the ICAC and he was charged by the ICAC with three counts of falsely pretending to be an officer of the ICAC on October 19, 2022. He pleaded not guilty to the charges in court on December 16, 2022.The prosecution served the defendant with the relevant trial materials, including relevant CCTV footages of the clinic concerned, bearing a watermark “Defence Copy”, capturing images and voices of various prosecution witnesses.The court heard that before the trial of the impersonation of ICAC officer case, the defendant, with intent to pervert the course of public justice, uploaded five video clips onto a social media platform. The video clips mentioned five of the prosecution witnesses of the case and contained assertions that the five people had fabricated CCTV footages for the prosecution against the defendant.ICAC enquiries revealed that the video clips contained CCTV footages of the clinic bearing a watermark “Defence Copy”. Personal particulars of the prosecution witnesses were also mentioned in the video clips. On March 16, 2023, the defendant was charged by the ICAC with five counts of perverting the course of public justice.The clinic concerned had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Lawrence Hui, assisted by ICAC officer Kenix Poon.The ICAC reminds the public that impersonating an ICAC officer is a serious crime. Anyone who commits the offence is liable on conviction to a maximum penalty of one-year imprisonment and a fine of $25,000. Should members of the public have queries about the identity of any ICAC officers who approach them, they should call the ICAC 24-hour Report Corruption Hotline (852) 25 266 366.An ICAC spokesperson stresses that the Commission would not tolerate any acts perverting the course of public justice. The ICAC would follow up on such illegal acts in a serious manner should they be found in its cases.