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Nov 2024Insurance intermediary charged by ICAC gets seven months’ jail for conspiring with policyholders over insurance claims fraudAn insurance intermediary, charged by the ICAC, was today (November 19) sentenced to seven months’ imprisonment at the Eastern Magistrates’ Courts for conspiring with two policyholders to deceive an insurer into paying accident insurance compensation to them by making false representations about their injuries. The offence was revealed in the course of an ICAC corruption investigation.Lalwani Jay Jerome, 35, formerly engaged by Asia One Asset Management Limited (Asia One) as a referrer, was earlier convicted of four counts of conspiracy to defraud, contrary to the Common Law, after trial. The court had earlier ordered the defendant to compensate a sum of about $52,000 to the insurer.In sentencing, Magistrate Mr Tsang Chung-yiu reprimanded the defendant for his dishonesty, adding that the court had to mete out a custodial sentence to convey a proper message to the society that the fraudulent acts in the present case amounted to serious offences.At the material time, insurance broker Asia One was entrusted by AIA International Limited (AIA) to sell its insurance products to customers. When the case took place between late 2017 and June 2018, two policyholders Tam Kai-chun and Lam In-kwan respectively took out an AIA life insurance policy with an accident rider through Lalwani.The insurance policies covered accident medical expenses reimbursement and accident indemnity. The policyholders were required to submit an accident insurance claim to AIA directly or via Asia One, supported by documentary proof, including receipts of medical consultations or treatments, and sick leave certificates or receipts issued by doctors or physiotherapists.The court heard that in their applications for insurance claims, Lalwani and the two policyholders falsely represented to AIA that the latter had respectively suffered injuries in his/her back or knees, and attached various documents purportedly issued by two doctors and two physiotherapy clinics to support that the duo had suffered from injuries, attended for medical consultations with the aforesaid doctors or therapists of the physiotherapy clinics, and taken sick leave. As a result, they had deceived AIA into paying insurance compensation totalling at least over $52,000.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the two policyholders did not suffer from the aforesaid injuries, nor did they receive any treatment or take the sick leave concerned.The policyholders concerned, Tam, 37, and Lam, 34, were also charged by the ICAC for their roles in separate cases. The duo had earlier pleaded guilty and their cases were both adjourned to November 25 for mention.AIA rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Steven Liu, assisted by ICAC officer Ivy Ho. 13
Nov 2024Ex-general manager of pharmaceutical wholesaler among three charged by ICAC over $1.1m service fees fraud and money launderingA then general manager of a pharmaceutical wholesaler and his subordinate were charged by the ICAC yesterday (November 12) for making false representation about consultancy and other services provided by a secretarial services company operated by the subordinate to defraud the pharmaceutical wholesaler of service fees totalling over $1.1 million. Meanwhile, a business partner of the subordinate was charged with money laundering.Watson Yau Wei-ching, 54, then general manager of Kingworld Medicine Healthcare Limited (Kingworld Medicine); and Alen Yu Yuen-to, 43, then marketing officer of Kingworld Medicine, jointly face two counts of fraud, contrary to section 16A(1) of the Theft Ordinance. Yau further faces another count of fraud.Co-defendant Chau Pak-ho, 40, director cum shareholder of Asia Great Services Limited (Asia Great), faces one count of dealing with property known or 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.The three defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (November 14) for mention. The prosecution will later apply for transferring the case to the District Court for plea.Between February 2017 and September 2023, Kingworld Medicine was a distributor and wholesaler of pharmaceuticals and healthcare products in Hong Kong and the Mainland. Yau oversaw sales and marketing of Kingworld’s products, while Yu was his subordinate. Yu and Chau were also directors and shareholders of Asia Great which provided secretarial services to clients.Hong Kong Ling Feng Advertising Company Limited (Ling Feng Advertising) was a contractor of Kingworld Medicine responsible for promoting its products. Kingworld Medicine would pay the contract sum to Ling Feng Advertising in advance for deduction of the product promotion costs.The charge alleges that Yau and Yu had falsely represented to Kingworld Medicine that seven invoices issued by Asia Great were genuine, and with intent to defraud, induced Kingworld Medicine to pay Asia Great consultancy services fees totalling over $530,000. Yau, with intend to defraud, also allegedly induced Kingworld Medicine to pay Asia Great print and design services fees in a sum of $62,000 by similar means.It is also alleged that the duo had falsely represented to Ling Feng Advertising that six invoices issued by Asia Great were genuine, and with intent to defraud, induced Ling Feng Advertising to pay consultancy services fees totalling over $540,000 to Asia Great on behalf of Kingworld Medicine, and deduct an amount of over $580,000 from the contract sum of an annual advertising contract between Kingworld Medicine and Ling Feng Advertising.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Asia Great had never provided Kingworld Medicine with the services stated in the invoices concerned.Meanwhile, co-defendant Chau is alleged to have dealt with a sum of about $180,000 in the bank account of Asia Great, knowing or having reasonable grounds to believe that it, in whole or in part, directly or indirectly represented proceeds of an indictable offence.Kingworld Medicine and Ling Feng Advertising rendered full assistance to the ICAC during its investigation into the case. 13
Nov 2024Works subcontractor charged by ICAC over $330,000 wage fraud and perversion over graft probeThe ICAC today (November 13) charged a works subcontractor and a worker for allegedly conspiring together to defraud a glass facade contractor of overpaid wages totalling over $330,000 by making false representations about workers’ attendance records. The subcontractor was also charged with perversion for allegedly instructing workers to falsely claim the latter’s attendance.Poon Tat-chun, 29, operator of Ocean Crown Enterprise Ltd (OCL); and Law Ka-ming, 29, then worker of OCL, jointly face one count of conspiracy to defraud, contrary to the Common Law. Poon further faces one count of doing an act tending and intended to pervert the course of public justice, contrary to the Common Law.The duo were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Friday (November 15) for mention. An application will be later lodged by the prosecution for transferring the case to the District Court for plea.At the material time, Poon was the operator of OCL engaged by a glass facade contractor to provide workers to conduct glass installation works at the construction site of a private residential estate on Lantau Island. OCL employed some 10 workers, including Law, to work at the construction site at a daily wage each ranged from $1,050 to $1,400.It is alleged that between February and April 2021, Poon and Law conspired with another OCL worker to overstate the number of working days of some workers and falsely represent to the contractor that the attendance records submitted by OCL were genuine to deceive the contractor into overpaying wages totalling over $330,000 to OCL.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Poon had allegedly instructed Law and other workers to make false representations about their attendance records, and requested the workers to return the overpaid wages to him each month.In addition, Poon allegedly perverted the course of public justice in the course of the ICAC investigation into the scheme. It is alleged that in late April 2022, Poon requested one of the OCL workers to pass a message to three other workers, asking them to falsely tell ICAC officers that they had signed the workers’ attendance records concerned, and to reply all questions asked by ICAC officers by saying “no idea”.ICAC enquiries revealed that the worker found Poon’s instruction improper, and did not follow the instruction which requested other workers to tell lies in the ICAC investigation.The glass facade contractor rendered full assistance to the ICAC during its investigation into the case. 07
May 2024Trading company duo charged by ICAC for offering over HK$1m bribes to vice president of bank over receipt of fundA director and a representative of a trading company were charged by the ICAC today (May 6) for allegedly offering bribes totalling HK$1.02 million to a vice president of a bank for assisting the company to receive an investment fund claimed to amount to $200 billion euros through its account held with the bank.Wammy Ngan Wang-lai and Jiang Jiaxin, respectively sole director cum shareholder and representative of Hong Kong Chinese Reserve International Company Limited (Chinese Reserve), both 55, jointly face two charges – one of conspiracy to offer an advantage to an agent and one of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance (POBO) and Section 159A of the Crimes Ordinance.The two defendants were released on ICAC bail, pending their appearance in the Eastern Magistrates’ Courts on Wednesday (May 8) for mention. The prosecution will apply for transferring the case to the District Court for plea.At the material time, Chinese Reserve held a bank account with DBS Bank (Hong Kong) Limited (DBS Bank), which required its customers to provide supporting documents in respect of large transactions for verification for due diligence purpose.It is alleged that between July and August 2023, the defendants conspired together to offer two bribe payments of HK$1 million and HK$20,000 respectively to a vice president of DBS Bank for assisting Chinese Reserve to re-activate its dormant bank account held with DBS Bank in order to receive an investment fund through the account.The vice president rejected the defendants’ offers and reported the matter to the bank. The ICAC subsequently received a corruption complaint and conducted an investigation. Enquiries revealed that Ngan claimed that Chinese Reserve had to receive an investment fund of $200 billion euros through its bank account held with DBS Bank and allegedly provided false documents to the bank.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. Should anyone comes across any suspicion of corruption, he or she should report to the ICAC immediately. ICAC 24-hour Report Corruption Hotline: 25 266 366.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.DBS Bank has rendered full assistance to the ICAC during its investigation into the case. 09
Feb 2023Security supervisor jailed for soliciting bribes from subordinateA security supervisor, charged by the ICAC, was today (February 7) sentenced to five months’ imprisonment at the Shatin Magistrates’ Courts for soliciting bribes of over $10,000 from a subordinate security guard for assisting the latter to get promoted to assistant security supervisor.Luk Pui-suet, 54, supervisor of Hong Kong Guards Limited (HKGL), was earlier found guilty of two counts of agent soliciting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO).In sentencing, Magistrate Mr Pang Leung-ting reprimanded Luk for showing no remorse. The offences involved were serious in nature since Luk solicited advantages from a subordinate in her capacity as a direct supervisor so as to exert influence over the subordinate’s promotion. The magistrate took a starting point of six months’ imprisonment and reduced Luk’s jail term by one month after taking into account various mitigating factors.The court heard that at the material time, Luk was an assistant supervisor of HKGL posted to Shui Chuen O Estate, a public housing estate in Shatin. She was one of the three assistant supervisors of the estate responsible for assisting to manage about 40 security guards.In November 2020, one of the security guards Tang Kam-ngau asked Luk about his chance of promotion. Tang believed that Luk would succeed the then supervisor after the latter’s retirement in mid-December 2020, leading to an assistant supervisor vacant post.Afterwards, Luk told Tang on two occasions that she would assume the post of supervisor and solicited two bribes, one of $5,000 to $8,000 and another of at least $5,000, from Tang for assisting him to get promoted to assistant supervisor.Tang gave Luk a red packet containing $2,000 cash, but Luk did not accept the red packet as the amount did not meet $5,000.HKGL prohibited its staff members from soliciting and accepting advantages in relation to their official duties. HKGL had rendered full assistance to the ICAC during its investigation into the case.Tang Kam-ngau, the security guard concerned, was earlier charged by the ICAC with bribery in a separate case. He pleaded guilty to three counts of offering an advantage to an agent and sentencing was adjourned to this Friday (February 10).The prosecution was today represented by Senior Public Prosecutor Rosa Lo, assisted by ICAC officer Jeff Ng.
Nov 2024Insurance intermediary charged by ICAC gets seven months’ jail for conspiring with policyholders over insurance claims fraudAn insurance intermediary, charged by the ICAC, was today (November 19) sentenced to seven months’ imprisonment at the Eastern Magistrates’ Courts for conspiring with two policyholders to deceive an insurer into paying accident insurance compensation to them by making false representations about their injuries. The offence was revealed in the course of an ICAC corruption investigation.Lalwani Jay Jerome, 35, formerly engaged by Asia One Asset Management Limited (Asia One) as a referrer, was earlier convicted of four counts of conspiracy to defraud, contrary to the Common Law, after trial. The court had earlier ordered the defendant to compensate a sum of about $52,000 to the insurer.In sentencing, Magistrate Mr Tsang Chung-yiu reprimanded the defendant for his dishonesty, adding that the court had to mete out a custodial sentence to convey a proper message to the society that the fraudulent acts in the present case amounted to serious offences.At the material time, insurance broker Asia One was entrusted by AIA International Limited (AIA) to sell its insurance products to customers. When the case took place between late 2017 and June 2018, two policyholders Tam Kai-chun and Lam In-kwan respectively took out an AIA life insurance policy with an accident rider through Lalwani.The insurance policies covered accident medical expenses reimbursement and accident indemnity. The policyholders were required to submit an accident insurance claim to AIA directly or via Asia One, supported by documentary proof, including receipts of medical consultations or treatments, and sick leave certificates or receipts issued by doctors or physiotherapists.The court heard that in their applications for insurance claims, Lalwani and the two policyholders falsely represented to AIA that the latter had respectively suffered injuries in his/her back or knees, and attached various documents purportedly issued by two doctors and two physiotherapy clinics to support that the duo had suffered from injuries, attended for medical consultations with the aforesaid doctors or therapists of the physiotherapy clinics, and taken sick leave. As a result, they had deceived AIA into paying insurance compensation totalling at least over $52,000.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the two policyholders did not suffer from the aforesaid injuries, nor did they receive any treatment or take the sick leave concerned.The policyholders concerned, Tam, 37, and Lam, 34, were also charged by the ICAC for their roles in separate cases. The duo had earlier pleaded guilty and their cases were both adjourned to November 25 for mention.AIA rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Steven Liu, assisted by ICAC officer Ivy Ho. 13
Nov 2024Ex-general manager of pharmaceutical wholesaler among three charged by ICAC over $1.1m service fees fraud and money launderingA then general manager of a pharmaceutical wholesaler and his subordinate were charged by the ICAC yesterday (November 12) for making false representation about consultancy and other services provided by a secretarial services company operated by the subordinate to defraud the pharmaceutical wholesaler of service fees totalling over $1.1 million. Meanwhile, a business partner of the subordinate was charged with money laundering.Watson Yau Wei-ching, 54, then general manager of Kingworld Medicine Healthcare Limited (Kingworld Medicine); and Alen Yu Yuen-to, 43, then marketing officer of Kingworld Medicine, jointly face two counts of fraud, contrary to section 16A(1) of the Theft Ordinance. Yau further faces another count of fraud.Co-defendant Chau Pak-ho, 40, director cum shareholder of Asia Great Services Limited (Asia Great), faces one count of dealing with property known or 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.The three defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (November 14) for mention. The prosecution will later apply for transferring the case to the District Court for plea.Between February 2017 and September 2023, Kingworld Medicine was a distributor and wholesaler of pharmaceuticals and healthcare products in Hong Kong and the Mainland. Yau oversaw sales and marketing of Kingworld’s products, while Yu was his subordinate. Yu and Chau were also directors and shareholders of Asia Great which provided secretarial services to clients.Hong Kong Ling Feng Advertising Company Limited (Ling Feng Advertising) was a contractor of Kingworld Medicine responsible for promoting its products. Kingworld Medicine would pay the contract sum to Ling Feng Advertising in advance for deduction of the product promotion costs.The charge alleges that Yau and Yu had falsely represented to Kingworld Medicine that seven invoices issued by Asia Great were genuine, and with intent to defraud, induced Kingworld Medicine to pay Asia Great consultancy services fees totalling over $530,000. Yau, with intend to defraud, also allegedly induced Kingworld Medicine to pay Asia Great print and design services fees in a sum of $62,000 by similar means.It is also alleged that the duo had falsely represented to Ling Feng Advertising that six invoices issued by Asia Great were genuine, and with intent to defraud, induced Ling Feng Advertising to pay consultancy services fees totalling over $540,000 to Asia Great on behalf of Kingworld Medicine, and deduct an amount of over $580,000 from the contract sum of an annual advertising contract between Kingworld Medicine and Ling Feng Advertising.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Asia Great had never provided Kingworld Medicine with the services stated in the invoices concerned.Meanwhile, co-defendant Chau is alleged to have dealt with a sum of about $180,000 in the bank account of Asia Great, knowing or having reasonable grounds to believe that it, in whole or in part, directly or indirectly represented proceeds of an indictable offence.Kingworld Medicine and Ling Feng Advertising rendered full assistance to the ICAC during its investigation into the case. 13
Nov 2024Works subcontractor charged by ICAC over $330,000 wage fraud and perversion over graft probeThe ICAC today (November 13) charged a works subcontractor and a worker for allegedly conspiring together to defraud a glass facade contractor of overpaid wages totalling over $330,000 by making false representations about workers’ attendance records. The subcontractor was also charged with perversion for allegedly instructing workers to falsely claim the latter’s attendance.Poon Tat-chun, 29, operator of Ocean Crown Enterprise Ltd (OCL); and Law Ka-ming, 29, then worker of OCL, jointly face one count of conspiracy to defraud, contrary to the Common Law. Poon further faces one count of doing an act tending and intended to pervert the course of public justice, contrary to the Common Law.The duo were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Friday (November 15) for mention. An application will be later lodged by the prosecution for transferring the case to the District Court for plea.At the material time, Poon was the operator of OCL engaged by a glass facade contractor to provide workers to conduct glass installation works at the construction site of a private residential estate on Lantau Island. OCL employed some 10 workers, including Law, to work at the construction site at a daily wage each ranged from $1,050 to $1,400.It is alleged that between February and April 2021, Poon and Law conspired with another OCL worker to overstate the number of working days of some workers and falsely represent to the contractor that the attendance records submitted by OCL were genuine to deceive the contractor into overpaying wages totalling over $330,000 to OCL.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Poon had allegedly instructed Law and other workers to make false representations about their attendance records, and requested the workers to return the overpaid wages to him each month.In addition, Poon allegedly perverted the course of public justice in the course of the ICAC investigation into the scheme. It is alleged that in late April 2022, Poon requested one of the OCL workers to pass a message to three other workers, asking them to falsely tell ICAC officers that they had signed the workers’ attendance records concerned, and to reply all questions asked by ICAC officers by saying “no idea”.ICAC enquiries revealed that the worker found Poon’s instruction improper, and did not follow the instruction which requested other workers to tell lies in the ICAC investigation.The glass facade contractor rendered full assistance to the ICAC during its investigation into the case. 07
May 2024Trading company duo charged by ICAC for offering over HK$1m bribes to vice president of bank over receipt of fundA director and a representative of a trading company were charged by the ICAC today (May 6) for allegedly offering bribes totalling HK$1.02 million to a vice president of a bank for assisting the company to receive an investment fund claimed to amount to $200 billion euros through its account held with the bank.Wammy Ngan Wang-lai and Jiang Jiaxin, respectively sole director cum shareholder and representative of Hong Kong Chinese Reserve International Company Limited (Chinese Reserve), both 55, jointly face two charges – one of conspiracy to offer an advantage to an agent and one of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance (POBO) and Section 159A of the Crimes Ordinance.The two defendants were released on ICAC bail, pending their appearance in the Eastern Magistrates’ Courts on Wednesday (May 8) for mention. The prosecution will apply for transferring the case to the District Court for plea.At the material time, Chinese Reserve held a bank account with DBS Bank (Hong Kong) Limited (DBS Bank), which required its customers to provide supporting documents in respect of large transactions for verification for due diligence purpose.It is alleged that between July and August 2023, the defendants conspired together to offer two bribe payments of HK$1 million and HK$20,000 respectively to a vice president of DBS Bank for assisting Chinese Reserve to re-activate its dormant bank account held with DBS Bank in order to receive an investment fund through the account.The vice president rejected the defendants’ offers and reported the matter to the bank. The ICAC subsequently received a corruption complaint and conducted an investigation. Enquiries revealed that Ngan claimed that Chinese Reserve had to receive an investment fund of $200 billion euros through its bank account held with DBS Bank and allegedly provided false documents to the bank.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. Should anyone comes across any suspicion of corruption, he or she should report to the ICAC immediately. ICAC 24-hour Report Corruption Hotline: 25 266 366.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.DBS Bank has rendered full assistance to the ICAC during its investigation into the case. 09
Feb 2023Security supervisor jailed for soliciting bribes from subordinateA security supervisor, charged by the ICAC, was today (February 7) sentenced to five months’ imprisonment at the Shatin Magistrates’ Courts for soliciting bribes of over $10,000 from a subordinate security guard for assisting the latter to get promoted to assistant security supervisor.Luk Pui-suet, 54, supervisor of Hong Kong Guards Limited (HKGL), was earlier found guilty of two counts of agent soliciting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO).In sentencing, Magistrate Mr Pang Leung-ting reprimanded Luk for showing no remorse. The offences involved were serious in nature since Luk solicited advantages from a subordinate in her capacity as a direct supervisor so as to exert influence over the subordinate’s promotion. The magistrate took a starting point of six months’ imprisonment and reduced Luk’s jail term by one month after taking into account various mitigating factors.The court heard that at the material time, Luk was an assistant supervisor of HKGL posted to Shui Chuen O Estate, a public housing estate in Shatin. She was one of the three assistant supervisors of the estate responsible for assisting to manage about 40 security guards.In November 2020, one of the security guards Tang Kam-ngau asked Luk about his chance of promotion. Tang believed that Luk would succeed the then supervisor after the latter’s retirement in mid-December 2020, leading to an assistant supervisor vacant post.Afterwards, Luk told Tang on two occasions that she would assume the post of supervisor and solicited two bribes, one of $5,000 to $8,000 and another of at least $5,000, from Tang for assisting him to get promoted to assistant supervisor.Tang gave Luk a red packet containing $2,000 cash, but Luk did not accept the red packet as the amount did not meet $5,000.HKGL prohibited its staff members from soliciting and accepting advantages in relation to their official duties. HKGL had rendered full assistance to the ICAC during its investigation into the case.Tang Kam-ngau, the security guard concerned, was earlier charged by the ICAC with bribery in a separate case. He pleaded guilty to three counts of offering an advantage to an agent and sentencing was adjourned to this Friday (February 10).The prosecution was today represented by Senior Public Prosecutor Rosa Lo, assisted by ICAC officer Jeff Ng.