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Ethical Decision MakingRecent ICAC Cases
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Aug 2022Ex-manager of Korean chain restaurant charged by ICAC over payroll wage fraudA former manager of a Korean chain restaurant was charged by the ICAC today (August 3) with deceiving the restaurant into paying wages totalling about $26,000 by falsifying the payroll records of eight part-time staff in the same month.Lai Hoi-lun, 34, former manager of MeokBang Korean BBQ & Bar (MeokBang), faces eight counts of fraud, contrary to Section 16A(1) of the Theft Ordinance. He was released on ICAC bail, pending his appearance in the West Kowloon Magistrates’ Courts on Friday (August 5) for plea.MeokBang is a chain restaurant operated by Fulum Group Holdings Limited (Fulum Group). At the material time, the defendant was a manager of the Tsing Yi branch of MeokBang. Amongst other duties, he was responsible for recruiting part-time staff for the branch, and preparing duty rosters and documents for releasing wage payments.The charges allege that the defendant falsely represented to Fulum Group in December 2019 that the payroll records of eight part-time staff were genuine, and with intent to defraud, induced Fulum Group to pay wages totalling about $26,000, which resulted in benefit to him or in prejudice to Fulum Group.ICAC investigation revealed that the eight part-time staff had never worked at the branch when the alleged offences took place.The investigation arose from a corruption complaint. Fulum Group has rendered full assistance to the Commission during its investigation into the case. 01
Aug 2022Buyer claiming property for self-use charged by ICAC over $7.8m mortgage loan fraudThe ICAC today (August 1) charged a property buyer for allegedly 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 ICAC investigation arose from a corruption allegation. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charging the property buyer.Hui Chi-fung, 38, Senior Station Officer of the Fire Services Department, faces two counts of fraud, contrary to Section 16A of the Theft Ordinance. He was released on ICAC bail, pending his appearance in the Eastern Magistrates’ Courts on Wednesday (August 3) for the case to be transferred to the District Court.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 the ICBC Asia under the Programme.The charges allege that between April 16 and July 8, 2020, the defendant made false representations to the ICBC Asia and the HKMCI that the above residential property would be occupied by himself after completion of the purchase, and with intent to defraud, induced the ICBC Asia to approve a mortgage loan application and grant him a loan of about $7.8 million, and the HKMCI to approve the application for mortgage loan insurance cover in respect of the mortgage loan.ICAC investigation revealed that the property was leased out shortly after the mortgage loan application was approved the ICBC Asia.The ICBC Asia and the HKMCI had rendered full assistance to the ICAC during its investigation into the case. 28
Jul 2022Woman charged by ICAC admits using false academic document to renew insurance agent registrationA woman, charged by the ICAC, today (July 28) admitted at the Eastern Magistrates’ Courts that she had used a false academic document to renew her insurance agent registration.Jia Yueping, 57, former insurance agent of AXA China Region Insurance Company Limited (AXA), who was charged last night (July 27), pleaded guilty to one count of conspiracy to use a false instrument, contrary to Sections 73 and 159A of the Crimes Ordinance.Principal Magistrate Ms Ada Yim Shun-yee adjourned the case to September 9 for sentence, pending the defendant’s probation and community service order reports. The defendant was granted cash bail.At the material time, all insurance agents were required to register and renew their registrations with the Hong Kong Federation of Insurers (HKFI). According to its regulations, insurance agents were required to complete Form 5 secondary education or its equivalent.The court heard that in a job application made to AXA in February 2013, the defendant stated that she graduated from a secondary school in the Mainland in 1982. A copy of her graduation certificate purportedly issued by the school was submitted to the HKFI through AXA. Upon registration with the HKFI, she joined AXA as an insurance agent in the same month.In mid-December 2018, the defendant’s registration with the HKFI was due for renewal and she submitted another graduation certificate purportedly issued by another secondary school in the Mainland in 1982 to the HKFI. The registration was not renewed due to the overlapping studying period stated in the two graduation certificates.AXA subsequently requested the defendant to account for the matter. She then submitted a letter purportedly issued by an education authority of the Mainland certifying that she graduated from the two secondary schools, which were respectively an evening school and a daytime school.In the belief that the information in the letter was true, AXA submitted a copy of the letter to the HKFI, which subsequently renewed the defendant’s registration. Had AXA known that the letter was false, the insurer would not have processed it and submitted it to the HKFI for renewing the defendant’s registration.The defendant admitted that she had conspired with her up-line manager to use the above false letter.The ICAC investigation arose from a corruption complaint. The HKFI and AXA had rendered full assistance to the Commission during its investigation into the case.The prosecution was today represented by ICAC officer Beta Leung. 26
Jul 2022Ex-operator of one-woman brothels wanted by ICAC brought to court for perversionA former operator of one-woman brothels, who was wanted by the ICAC for conspiracy to pervert public justice by surrendering prostitutes for arrest in police raids under a tip-off arrangement, was brought to the Eastern Magistrates’ Courts today (July 26) upon his return to Hong Kong.Chan Siu-ki, 60, was charged in June 2019 with two counts of conspiracy to pervert the course of public justice, contrary to Common Law and Section 159A of the Crimes Ordinance. He pleaded not guilty to the charges but failed to appear at the Eastern Magistrates’ Courts for trial on January 2, 2020; a warrant for his arrest was then issued.The defendant was arrested yesterday evening (July 25) when he returned to Hong Kong from the Mainland and brought to the Eastern Magistrates’ Courts this afternoon. Principal Magistrate Ms Ada Yim Shun-yee adjourned the case to September 20 for mention and remanded the defendant in the custody of the Correctional Services Department.The alleged offences took place between May 2016 and March 2017. At the material time, the defendant and another person operated a number of one-woman brothels in two buildings in Wan Chai, which had been under enforcement actions undertaken by a Special Duty Squad of Wan Chai District of the Hong Kong Police Force (HKPF).The charges allege that Chan and the abovementioned other operator conspired together with other persons to do acts which had a tendency to pervert the course of public justice. It is alleged that a pre-determined number of prostitutes would be arranged for arrest during forewarned police raids; and police investigation would only be conducted at the rooms occupied by those designated prostitutes.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 Chan and the aforesaid other operator. The operator pleaded guilty to his charges and was eventually jailed for 15 months.The HKPF had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Keith Lam. 26
Jul 2022Property agent charged by ICAC with bribery over rent concessions of claw machine shop in pandemicA property agent was charged by the ICAC today (July 26) with 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, 56, former property agent of Land Master & Associates (Shop) Limited (Land Master), faces a total 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 Common Law and Section 19(1)(b) of the Theft Ordinance.Ng Chi-hung, 56, boyfriend of Chung, was also charged with one count of false accounting, contrary to Section 19(1)(a) of the Theft Ordinance. The duo were released on ICAC bail, pending their appearance in the Kowloon City Magistrates’ Courts on Thursday (July 28) for plea.The alleged offences took place between July and October 2020. At the material time, Chung was a property agent of Land Master. Apart from procuring property transactions, property agents of Land Master were responsible for providing post-transaction services to clients, including assisting them in the negotiation of rental adjustment or renewal of tenancy agreement. Normally Land Master would not charge its clients for the post-transaction services provided.Chung was the handling property agent of a lease transaction in which 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. In view of the pandemic situation, the tenant had engaged Chung to assist in negotiations with the landlord on rent concessions since early 2020.The four bribery charges allege that Chung, without lawful authority or reasonable excuse, accepted three bribes totalling $21,000 and solicited another bribe of $20,000 from the tenant as an inducement to or reward for assisting the tenant to negotiate with the landlord for reducing the monthly rental and renewing its lease.Two other charges allege that Chung unlawfully incited the tenant to dishonestly furnish false information to its auditor on the operating expenditure incurred, making use of five false receipts purportedly issued by a renovation contractor showing that the contractor was charging the tenant for services rendered.The remaining charge alleges that Ng dishonestly falsified three of the above false receipts made for an accounting purpose.It is alleged that the false receipts concerned were used to cover up bribe payments made to Chung.The ICAC investigation arose from a corruption complaint. Land Master has rendered full assistance to the Commission during its investigation into the case.
Aug 2022Ex-manager of Korean chain restaurant charged by ICAC over payroll wage fraudA former manager of a Korean chain restaurant was charged by the ICAC today (August 3) with deceiving the restaurant into paying wages totalling about $26,000 by falsifying the payroll records of eight part-time staff in the same month.Lai Hoi-lun, 34, former manager of MeokBang Korean BBQ & Bar (MeokBang), faces eight counts of fraud, contrary to Section 16A(1) of the Theft Ordinance. He was released on ICAC bail, pending his appearance in the West Kowloon Magistrates’ Courts on Friday (August 5) for plea.MeokBang is a chain restaurant operated by Fulum Group Holdings Limited (Fulum Group). At the material time, the defendant was a manager of the Tsing Yi branch of MeokBang. Amongst other duties, he was responsible for recruiting part-time staff for the branch, and preparing duty rosters and documents for releasing wage payments.The charges allege that the defendant falsely represented to Fulum Group in December 2019 that the payroll records of eight part-time staff were genuine, and with intent to defraud, induced Fulum Group to pay wages totalling about $26,000, which resulted in benefit to him or in prejudice to Fulum Group.ICAC investigation revealed that the eight part-time staff had never worked at the branch when the alleged offences took place.The investigation arose from a corruption complaint. Fulum Group has rendered full assistance to the Commission during its investigation into the case. 01
Aug 2022Buyer claiming property for self-use charged by ICAC over $7.8m mortgage loan fraudThe ICAC today (August 1) charged a property buyer for allegedly 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 ICAC investigation arose from a corruption allegation. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charging the property buyer.Hui Chi-fung, 38, Senior Station Officer of the Fire Services Department, faces two counts of fraud, contrary to Section 16A of the Theft Ordinance. He was released on ICAC bail, pending his appearance in the Eastern Magistrates’ Courts on Wednesday (August 3) for the case to be transferred to the District Court.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 the ICBC Asia under the Programme.The charges allege that between April 16 and July 8, 2020, the defendant made false representations to the ICBC Asia and the HKMCI that the above residential property would be occupied by himself after completion of the purchase, and with intent to defraud, induced the ICBC Asia to approve a mortgage loan application and grant him a loan of about $7.8 million, and the HKMCI to approve the application for mortgage loan insurance cover in respect of the mortgage loan.ICAC investigation revealed that the property was leased out shortly after the mortgage loan application was approved the ICBC Asia.The ICBC Asia and the HKMCI had rendered full assistance to the ICAC during its investigation into the case. 28
Jul 2022Woman charged by ICAC admits using false academic document to renew insurance agent registrationA woman, charged by the ICAC, today (July 28) admitted at the Eastern Magistrates’ Courts that she had used a false academic document to renew her insurance agent registration.Jia Yueping, 57, former insurance agent of AXA China Region Insurance Company Limited (AXA), who was charged last night (July 27), pleaded guilty to one count of conspiracy to use a false instrument, contrary to Sections 73 and 159A of the Crimes Ordinance.Principal Magistrate Ms Ada Yim Shun-yee adjourned the case to September 9 for sentence, pending the defendant’s probation and community service order reports. The defendant was granted cash bail.At the material time, all insurance agents were required to register and renew their registrations with the Hong Kong Federation of Insurers (HKFI). According to its regulations, insurance agents were required to complete Form 5 secondary education or its equivalent.The court heard that in a job application made to AXA in February 2013, the defendant stated that she graduated from a secondary school in the Mainland in 1982. A copy of her graduation certificate purportedly issued by the school was submitted to the HKFI through AXA. Upon registration with the HKFI, she joined AXA as an insurance agent in the same month.In mid-December 2018, the defendant’s registration with the HKFI was due for renewal and she submitted another graduation certificate purportedly issued by another secondary school in the Mainland in 1982 to the HKFI. The registration was not renewed due to the overlapping studying period stated in the two graduation certificates.AXA subsequently requested the defendant to account for the matter. She then submitted a letter purportedly issued by an education authority of the Mainland certifying that she graduated from the two secondary schools, which were respectively an evening school and a daytime school.In the belief that the information in the letter was true, AXA submitted a copy of the letter to the HKFI, which subsequently renewed the defendant’s registration. Had AXA known that the letter was false, the insurer would not have processed it and submitted it to the HKFI for renewing the defendant’s registration.The defendant admitted that she had conspired with her up-line manager to use the above false letter.The ICAC investigation arose from a corruption complaint. The HKFI and AXA had rendered full assistance to the Commission during its investigation into the case.The prosecution was today represented by ICAC officer Beta Leung. 26
Jul 2022Ex-operator of one-woman brothels wanted by ICAC brought to court for perversionA former operator of one-woman brothels, who was wanted by the ICAC for conspiracy to pervert public justice by surrendering prostitutes for arrest in police raids under a tip-off arrangement, was brought to the Eastern Magistrates’ Courts today (July 26) upon his return to Hong Kong.Chan Siu-ki, 60, was charged in June 2019 with two counts of conspiracy to pervert the course of public justice, contrary to Common Law and Section 159A of the Crimes Ordinance. He pleaded not guilty to the charges but failed to appear at the Eastern Magistrates’ Courts for trial on January 2, 2020; a warrant for his arrest was then issued.The defendant was arrested yesterday evening (July 25) when he returned to Hong Kong from the Mainland and brought to the Eastern Magistrates’ Courts this afternoon. Principal Magistrate Ms Ada Yim Shun-yee adjourned the case to September 20 for mention and remanded the defendant in the custody of the Correctional Services Department.The alleged offences took place between May 2016 and March 2017. At the material time, the defendant and another person operated a number of one-woman brothels in two buildings in Wan Chai, which had been under enforcement actions undertaken by a Special Duty Squad of Wan Chai District of the Hong Kong Police Force (HKPF).The charges allege that Chan and the abovementioned other operator conspired together with other persons to do acts which had a tendency to pervert the course of public justice. It is alleged that a pre-determined number of prostitutes would be arranged for arrest during forewarned police raids; and police investigation would only be conducted at the rooms occupied by those designated prostitutes.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 Chan and the aforesaid other operator. The operator pleaded guilty to his charges and was eventually jailed for 15 months.The HKPF had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Keith Lam. 26
Jul 2022Property agent charged by ICAC with bribery over rent concessions of claw machine shop in pandemicA property agent was charged by the ICAC today (July 26) with 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, 56, former property agent of Land Master & Associates (Shop) Limited (Land Master), faces a total 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 Common Law and Section 19(1)(b) of the Theft Ordinance.Ng Chi-hung, 56, boyfriend of Chung, was also charged with one count of false accounting, contrary to Section 19(1)(a) of the Theft Ordinance. The duo were released on ICAC bail, pending their appearance in the Kowloon City Magistrates’ Courts on Thursday (July 28) for plea.The alleged offences took place between July and October 2020. At the material time, Chung was a property agent of Land Master. Apart from procuring property transactions, property agents of Land Master were responsible for providing post-transaction services to clients, including assisting them in the negotiation of rental adjustment or renewal of tenancy agreement. Normally Land Master would not charge its clients for the post-transaction services provided.Chung was the handling property agent of a lease transaction in which 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. In view of the pandemic situation, the tenant had engaged Chung to assist in negotiations with the landlord on rent concessions since early 2020.The four bribery charges allege that Chung, without lawful authority or reasonable excuse, accepted three bribes totalling $21,000 and solicited another bribe of $20,000 from the tenant as an inducement to or reward for assisting the tenant to negotiate with the landlord for reducing the monthly rental and renewing its lease.Two other charges allege that Chung unlawfully incited the tenant to dishonestly furnish false information to its auditor on the operating expenditure incurred, making use of five false receipts purportedly issued by a renovation contractor showing that the contractor was charging the tenant for services rendered.The remaining charge alleges that Ng dishonestly falsified three of the above false receipts made for an accounting purpose.It is alleged that the false receipts concerned were used to cover up bribe payments made to Chung.The ICAC investigation arose from a corruption complaint. Land Master has rendered full assistance to the Commission during its investigation into the case.