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Ethical Decision MakingRecent ICAC Cases
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Feb 2024Twenty months’ jail for ex-bank employee charged by ICAC jailed over $820,000 insurance fraudA former bank employee, charged by the ICAC, was today (February 2) sentenced to 20 months’ imprisonment at the District Court for defrauding two clients of insurance premiums totalling over HK$820,000.Chan Ka-him, 34, former insurance specialist of the Standard Chartered Bank (Hong Kong) Limited (Standard Chartered Bank), was earlier found guilty of three counts of fraud and one count of attempted fraud, contrary to Section 16A of the Theft Ordinance.In sentencing, Deputy District Judge Mr Peter Hui reprimanded the defendant for premeditating the scam, breaching the trust placed in him and undermining the reputation of the bank concerned.The court heard that at the material time, the defendant was posted to a branch of Standard Chartered Bank in Wan Chai. His job duties included the promotion of insurance products of Prudential Hong Kong Limited (Prudential HK) to clients of the bank under a business agreement with the insurer. Between January and March 2019, the defendant assisted two clients to take out two insurance policies of Prudential HK through Standard Chartered Bank.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant induced the two clients to transfer US$52,300 (about HK$408,000) and over HK$420,000 to the bank account of an associate of him in August and September 2019 respectively by falsely representing to assist them in settling premium payment with Prudential HK. The defendant subsequently attempted to induce Prudential HK to cancel the insurance policy by falsely claiming that the clients requested to do so.Standard Chartered Bank and Prudential HK had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Public Prosecutor Wayne Lee, assisted by ICAC officers Emily Cheung and KK Chu.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 selling of insurance products and referral of client through case scenarios and corruption prevention safeguards. The Commission will continue to collaborate with banks to provide integrity training for their staff. 02
Feb 2024Two more ex-site team leaders of Third Runway Project charged by ICAC jailed for bribery over workers’ employmentIn recent years, the ICAC has taken a series of enforcement actions against solicitation and acceptance of illegal rebates from construction workers and launched a series of relevant publicity and education programmes. Two more former site team leaders of a sub-contractor of the Third Runway Project of the Hong Kong International Airport (Third Runway Project) were today (February 2) each sentenced to five months’ imprisonment at the West Kowloon Magistrates’ Courts for accepting bribes from four bar-benders over their employment.Xu Ergao, 48; and Guo Tianbao, 43, both former site team leaders for bar-bending works of MLife Engineering Limited (MEL), earlier pleaded guilty to a total of four counts of conspiracy for agents to accept advantages, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance.In sentencing, Magistrate Mr Jason Wan Siu-ming remarked that the defendants had exploited fellow construction workers in an extended period of time, warranting custodial sentences. The magistrate also ordered the duo to repay a total of over $90,000, equivalent to the amount of bribes involved in the present case, to MEL as restitutions.The ICAC had so far charged 26 people in relation to bribery over the employment of workers of the Third Runway Project and most of the defendants were site team leaders of a sub-contractor of the project. Twenty-one defendants, including the duo in the present case, had pleaded guilty or were found guilty after trial, receiving sentences up to 16 months in jail. Three others are awaiting plea or trial.An ICAC spokesperson urges construction workers not to tolerate corruption. Should they be asked to pay bribes in exchange for their employment, they should report to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366.The court heard that MEL was a sub-contractor of the Third Runway Project responsible for recruiting construction workers to conduct various works. Xu and Guo were site team leaders leading the same team of bar-benders working at the project’s construction site.Between August 2020 and April 2021, Xu and Guo conspired together to accept bribes totalling over $90,000 from four bar-benders for continuing their employment with MEL. The bar-benders believed that if they did not pay bribes ranging from 3,900 to about $33,000, their employment would be terminated.The Airport Authority Hong Kong, the relevant main contractor SAPR JV and MEL had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Ruby Cheung. 26
Jan 2024Ex-chief operations officer of medical device firm charged as ICAC probe reveals $3.1m project payments fraudA then chief operations officer of a medical device firm was charged by the ICAC yesterday (January 25) with fraud after a corruption investigation revealed that he allegedly defrauded the medical device firm payments of over $3.1 million for a research and development (R&D) and production project by making false representation that an international corporation was the buyer of the project.Francis Fung Chung-hung, 73, former chief operations officer of Flussig Medtech Limited (Flussig), faces one count of fraud, contrary to Section 16A(1) of the Theft Ordinance. He was released on bail, pending his appearance at the Eastern Magistrates’ Courts next Tuesday (January 30) for mention, when the case will be transferred to the District Court for plea.In 2018, the defendant invited an investor to invest in the R&D and production project of a medical device. The investor subsequently set up Flussig to run the project and employed the defendant as its chief operations officer. Due to the slow progress of the project, the defendant recommended the investor to invest in another R&D and production project of a coffee machine to make profit to fund the medical device project.The investor agreed to invest in the coffee machine project through Flussig and accepted defendant’s recommendation to engage BM Technology Design Limited (BM Tech) and Wargames Factory Limited (Wargames Factory) for software development, manufacturing plastic parts and supplying prototype.It is alleged that between October 2019 and April 2020, the defendant, with intent to defraud, induced Flussig to settle payments totalling over $3.1 million with BM Tech and Wargames Factory by falsely representing to Flussig that an international beverage corporation would purchase the coffee machine project from Flussig.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the international beverage corporation had never entered into any business negotiation or agreement with Flussig.Flussig and the international beverage corporation concerned have rendered full assistance to the ICAC during its investigation into the case. 23
Jan 2024Ex-salesman of groceries supplier charged as ICAC probe reveals fraud of goods worth $12mThe ICAC today (January 23) charged a then senior sales executive of a groceries supplier with fraud after a corruption investigation revealed that he allegedly induced the supplier to release goods worth totalling over $12 million in nine months by making false representations about the orders placed by various clients.Mak Ka-wing, 45, former senior sales executive of Dah Chong Hong Limited (DCH), faces 32 counts of fraud, contrary to Section 16A of the Theft Ordinance. He was released on bail, pending his appearance at the Kwun Tong Magistrates’ Courts on Thursday (January 25) for mention, when the case will be transferred to the District Court for plea.At the material time, the defendant was a senior sales executive of DCH which engaged in the supply of groceries. He was responsible for handling groceries orders placed by clients. Upon receiving a request from a client, an invoice would be issued for arranging release or delivery of goods to the client.In the nine months between August 2020 and April 2021, the defendant, with intent to defraud, allegedly induced DCH to arrange release or delivery of goods with the total value of over $12 million by falsely representing to DCH that 32 clients had ordered goods from the company.The ICAC investigation arose from a corruption complaint. Enquiries revealed that during the abovementioned period, the defendant allegedly caused DCH to release the relevant goods by placing fictitious orders. It is alleged that the defendant subsequently sold the goods to other parties privately but only paid about $278,000 to DCH.DCH has rendered full assistance to the ICAC during its investigation into the case. 19
Jan 2024Telecom company’s assistant manager charged by ICAC in fibre installation service orders conflict of interest case faces perversionA then assistant manager of a telecommunications company and three others were earlier charged by the ICAC for allegedly concealing the assistant manager’s interest in a contractor to secure fibre installation service orders worth totalling $180,000. The assistant manager was today (January 19) laid with an additional perversion charge for allegedly making a false representation about declaring his role in the contractor to the company during the anti-graft agency’s investigation.The four defendants were Chan Chun-kin, 43, former assistant manager of Technical & Service Support Department of i-CABLE Communications Limited (i-CABLE); his girlfriend Fok Yuen-kei, 44; his personal friend Lo Lok-hei, 43, sole director cum shareholder of Lokkin Engineering Limited (Lokkin); and Chan Hau-leung, 36, technician of a contractor of i-CABLE. They earlier pleaded not guilty to three counts of obtaining pecuniary advantage by deception, contrary to Section 18(1) of the Theft Ordinance.When the four defendants appeared at the West Kowloon Magistrates’ Courts for a pre-trial review today, Chan Chun-kin was laid with an additional count of doing an act or a series of acts tending and intended to pervert the course of public justice, contrary to Common Law, upon further legal advice of the Department of Justice.Chan Chun-kin pleaded not guilty to the additional charge. Magistrate Mr Jason Wan Siu-ming adjourned the case to April 2 for trial and granted bail to the four defendants.)At the material time, Chan Chun-kin was an assistant manager of Technical & Service Support Department of i-CABLE. He was responsible for monitoring and evaluating the service quality of contractors engaged by the department to conduct networking installation and maintenance works at customers’ premises and to make recommendation on the engagement of contractors.The policies of i-CABLE stipulated that all employees should avoid actual or potential conflict of interest and that they should fill in and submit declaration forms to declare their conflict of interest in writing to the management.The charges earlier laid against the four defendants alleged that between May and August 2022, they dishonestly obtained for Lokkin opportunities to earn remuneration in respect of three service orders regarding fibre installation at three estates by concealing from i-CABLE that Chan Chun-kin was the beneficial owner and operator of Lokkin.The ICAC investigation arose from a corruption investigation. Enquiries revealed that upon Chan Chun-kin’s recommendation, Lokkin was engaged by i-CABLE as a contractor for fibre installation works. Lokkin was subsequently awarded the three service orders of fibre installation for three estates worth totalling $180,000.The additional charge alleged that Chan Chun-kin intended to pervert the course of public justice between mid-September and early October 2022, which was after his arrest by the ICAC. He allegedly made a false representation to i-CABLE that he had submitted a declaration form to the company in late 2021 to declare his role in Lokkin.An ICAC spokesperson notes that perverting the course of public justice is a serious offence. An offender is liable on conviction to an imprisonment for any term and a fine of any amount. Should such illegal acts be found in ICAC cases, the Commission would not tolerate them and would follow up on them in a serious manner.i-CABLE has rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Claudia Ng, assisted by ICAC officer Chris Lai.
Feb 2024Twenty months’ jail for ex-bank employee charged by ICAC jailed over $820,000 insurance fraudA former bank employee, charged by the ICAC, was today (February 2) sentenced to 20 months’ imprisonment at the District Court for defrauding two clients of insurance premiums totalling over HK$820,000.Chan Ka-him, 34, former insurance specialist of the Standard Chartered Bank (Hong Kong) Limited (Standard Chartered Bank), was earlier found guilty of three counts of fraud and one count of attempted fraud, contrary to Section 16A of the Theft Ordinance.In sentencing, Deputy District Judge Mr Peter Hui reprimanded the defendant for premeditating the scam, breaching the trust placed in him and undermining the reputation of the bank concerned.The court heard that at the material time, the defendant was posted to a branch of Standard Chartered Bank in Wan Chai. His job duties included the promotion of insurance products of Prudential Hong Kong Limited (Prudential HK) to clients of the bank under a business agreement with the insurer. Between January and March 2019, the defendant assisted two clients to take out two insurance policies of Prudential HK through Standard Chartered Bank.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant induced the two clients to transfer US$52,300 (about HK$408,000) and over HK$420,000 to the bank account of an associate of him in August and September 2019 respectively by falsely representing to assist them in settling premium payment with Prudential HK. The defendant subsequently attempted to induce Prudential HK to cancel the insurance policy by falsely claiming that the clients requested to do so.Standard Chartered Bank and Prudential HK had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Public Prosecutor Wayne Lee, assisted by ICAC officers Emily Cheung and KK Chu.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 selling of insurance products and referral of client through case scenarios and corruption prevention safeguards. The Commission will continue to collaborate with banks to provide integrity training for their staff. 02
Feb 2024Two more ex-site team leaders of Third Runway Project charged by ICAC jailed for bribery over workers’ employmentIn recent years, the ICAC has taken a series of enforcement actions against solicitation and acceptance of illegal rebates from construction workers and launched a series of relevant publicity and education programmes. Two more former site team leaders of a sub-contractor of the Third Runway Project of the Hong Kong International Airport (Third Runway Project) were today (February 2) each sentenced to five months’ imprisonment at the West Kowloon Magistrates’ Courts for accepting bribes from four bar-benders over their employment.Xu Ergao, 48; and Guo Tianbao, 43, both former site team leaders for bar-bending works of MLife Engineering Limited (MEL), earlier pleaded guilty to a total of four counts of conspiracy for agents to accept advantages, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance.In sentencing, Magistrate Mr Jason Wan Siu-ming remarked that the defendants had exploited fellow construction workers in an extended period of time, warranting custodial sentences. The magistrate also ordered the duo to repay a total of over $90,000, equivalent to the amount of bribes involved in the present case, to MEL as restitutions.The ICAC had so far charged 26 people in relation to bribery over the employment of workers of the Third Runway Project and most of the defendants were site team leaders of a sub-contractor of the project. Twenty-one defendants, including the duo in the present case, had pleaded guilty or were found guilty after trial, receiving sentences up to 16 months in jail. Three others are awaiting plea or trial.An ICAC spokesperson urges construction workers not to tolerate corruption. Should they be asked to pay bribes in exchange for their employment, they should report to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366.The court heard that MEL was a sub-contractor of the Third Runway Project responsible for recruiting construction workers to conduct various works. Xu and Guo were site team leaders leading the same team of bar-benders working at the project’s construction site.Between August 2020 and April 2021, Xu and Guo conspired together to accept bribes totalling over $90,000 from four bar-benders for continuing their employment with MEL. The bar-benders believed that if they did not pay bribes ranging from 3,900 to about $33,000, their employment would be terminated.The Airport Authority Hong Kong, the relevant main contractor SAPR JV and MEL had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Ruby Cheung. 26
Jan 2024Ex-chief operations officer of medical device firm charged as ICAC probe reveals $3.1m project payments fraudA then chief operations officer of a medical device firm was charged by the ICAC yesterday (January 25) with fraud after a corruption investigation revealed that he allegedly defrauded the medical device firm payments of over $3.1 million for a research and development (R&D) and production project by making false representation that an international corporation was the buyer of the project.Francis Fung Chung-hung, 73, former chief operations officer of Flussig Medtech Limited (Flussig), faces one count of fraud, contrary to Section 16A(1) of the Theft Ordinance. He was released on bail, pending his appearance at the Eastern Magistrates’ Courts next Tuesday (January 30) for mention, when the case will be transferred to the District Court for plea.In 2018, the defendant invited an investor to invest in the R&D and production project of a medical device. The investor subsequently set up Flussig to run the project and employed the defendant as its chief operations officer. Due to the slow progress of the project, the defendant recommended the investor to invest in another R&D and production project of a coffee machine to make profit to fund the medical device project.The investor agreed to invest in the coffee machine project through Flussig and accepted defendant’s recommendation to engage BM Technology Design Limited (BM Tech) and Wargames Factory Limited (Wargames Factory) for software development, manufacturing plastic parts and supplying prototype.It is alleged that between October 2019 and April 2020, the defendant, with intent to defraud, induced Flussig to settle payments totalling over $3.1 million with BM Tech and Wargames Factory by falsely representing to Flussig that an international beverage corporation would purchase the coffee machine project from Flussig.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the international beverage corporation had never entered into any business negotiation or agreement with Flussig.Flussig and the international beverage corporation concerned have rendered full assistance to the ICAC during its investigation into the case. 23
Jan 2024Ex-salesman of groceries supplier charged as ICAC probe reveals fraud of goods worth $12mThe ICAC today (January 23) charged a then senior sales executive of a groceries supplier with fraud after a corruption investigation revealed that he allegedly induced the supplier to release goods worth totalling over $12 million in nine months by making false representations about the orders placed by various clients.Mak Ka-wing, 45, former senior sales executive of Dah Chong Hong Limited (DCH), faces 32 counts of fraud, contrary to Section 16A of the Theft Ordinance. He was released on bail, pending his appearance at the Kwun Tong Magistrates’ Courts on Thursday (January 25) for mention, when the case will be transferred to the District Court for plea.At the material time, the defendant was a senior sales executive of DCH which engaged in the supply of groceries. He was responsible for handling groceries orders placed by clients. Upon receiving a request from a client, an invoice would be issued for arranging release or delivery of goods to the client.In the nine months between August 2020 and April 2021, the defendant, with intent to defraud, allegedly induced DCH to arrange release or delivery of goods with the total value of over $12 million by falsely representing to DCH that 32 clients had ordered goods from the company.The ICAC investigation arose from a corruption complaint. Enquiries revealed that during the abovementioned period, the defendant allegedly caused DCH to release the relevant goods by placing fictitious orders. It is alleged that the defendant subsequently sold the goods to other parties privately but only paid about $278,000 to DCH.DCH has rendered full assistance to the ICAC during its investigation into the case. 19
Jan 2024Telecom company’s assistant manager charged by ICAC in fibre installation service orders conflict of interest case faces perversionA then assistant manager of a telecommunications company and three others were earlier charged by the ICAC for allegedly concealing the assistant manager’s interest in a contractor to secure fibre installation service orders worth totalling $180,000. The assistant manager was today (January 19) laid with an additional perversion charge for allegedly making a false representation about declaring his role in the contractor to the company during the anti-graft agency’s investigation.The four defendants were Chan Chun-kin, 43, former assistant manager of Technical & Service Support Department of i-CABLE Communications Limited (i-CABLE); his girlfriend Fok Yuen-kei, 44; his personal friend Lo Lok-hei, 43, sole director cum shareholder of Lokkin Engineering Limited (Lokkin); and Chan Hau-leung, 36, technician of a contractor of i-CABLE. They earlier pleaded not guilty to three counts of obtaining pecuniary advantage by deception, contrary to Section 18(1) of the Theft Ordinance.When the four defendants appeared at the West Kowloon Magistrates’ Courts for a pre-trial review today, Chan Chun-kin was laid with an additional count of doing an act or a series of acts tending and intended to pervert the course of public justice, contrary to Common Law, upon further legal advice of the Department of Justice.Chan Chun-kin pleaded not guilty to the additional charge. Magistrate Mr Jason Wan Siu-ming adjourned the case to April 2 for trial and granted bail to the four defendants.)At the material time, Chan Chun-kin was an assistant manager of Technical & Service Support Department of i-CABLE. He was responsible for monitoring and evaluating the service quality of contractors engaged by the department to conduct networking installation and maintenance works at customers’ premises and to make recommendation on the engagement of contractors.The policies of i-CABLE stipulated that all employees should avoid actual or potential conflict of interest and that they should fill in and submit declaration forms to declare their conflict of interest in writing to the management.The charges earlier laid against the four defendants alleged that between May and August 2022, they dishonestly obtained for Lokkin opportunities to earn remuneration in respect of three service orders regarding fibre installation at three estates by concealing from i-CABLE that Chan Chun-kin was the beneficial owner and operator of Lokkin.The ICAC investigation arose from a corruption investigation. Enquiries revealed that upon Chan Chun-kin’s recommendation, Lokkin was engaged by i-CABLE as a contractor for fibre installation works. Lokkin was subsequently awarded the three service orders of fibre installation for three estates worth totalling $180,000.The additional charge alleged that Chan Chun-kin intended to pervert the course of public justice between mid-September and early October 2022, which was after his arrest by the ICAC. He allegedly made a false representation to i-CABLE that he had submitted a declaration form to the company in late 2021 to declare his role in Lokkin.An ICAC spokesperson notes that perverting the course of public justice is a serious offence. An offender is liable on conviction to an imprisonment for any term and a fine of any amount. Should such illegal acts be found in ICAC cases, the Commission would not tolerate them and would follow up on them in a serious manner.i-CABLE has rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Claudia Ng, assisted by ICAC officer Chris Lai.