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
29
Jun 2023Woman charged by ICAC jailed for 22 months over $5.7m mortgage loans fraudA mortgage loan applicant, charged by the ICAC, was today (June 29) sentenced to 22 months’ imprisonment after admitting at the District Court that she had deceived two financial institutions into granting her two mortgage loans totalling $5.7 million by fraudulent means. The offences were revealed in the course of a corruption investigation by the Commission.Cheung Pui-shan, 47, pleaded guilty to two counts of conspiracy to defraud, contrary to the Common Law.In sentencing, Deputy Judge Ms Ada Yim Shun-yee remarked that offences involved in this case were serious in nature. The defendant obtained loans by fraudulent means, warranting a deterrent sentence.The court heard that in 2011, the defendant acquired a property. In December 2014, she pledged the property and took out a mortgage loan of about $3.3 million (loan 1) from Wing Fung Credit Limited (WFL), a financial institution.Between December 2014 and April 2015, she further applied for two second mortgage loans in respect of the property with two other financial institutions through a loan agent. In order to apply for the two second mortgage loans, the defendant, under the arrangement and assistance of the loan agent, submitted to Universal Prestige Finance Company (UPL) a copy of the falsified agreement on loan 1 so as to falsely show that the amount of loan 1 was $1.24 million. She subsequently used the same means to make a false representation to KP Financial Services Limited (KPL) that the amount of loan 1 was $800,000.In the belief that the documents submitted by the defendant were true and accurate, UPL and KPL respectively granted her second mortgage loans of $2.4 million and $3.3 million.The ICAC investigation arose from a corruption complaint. It was revealed that at the material time, the market value of the above property was around $4.3 million to $5.4 million. Had UPL and KPL known the mortgage loan agreements provided by the defendant were false, they would not have granted her the second mortgage loans concerned as the accumulated mortgage amount exceeded the market value of the property at that time.Enquiries also revealed that upon receipt of second mortgage loans from UPL and KPL, the defendant passed about $590,000 as “tea money” to the loan agent.UPL, KPL and WFL had 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 May Lam. 29
Jun 2023Three more ex-site team leaders charged by ICAC with accepting bribes from 80 Third Runway Project construction workersThree former site team leaders of a sub-contractor of the Third Runway Project of the Hong Kong International Airport (Third Runway Project) were charged by the ICAC yesterday (June 28) for allegedly accepting bribes totalling over $800,000 from more than 80 construction workers in relation to their employment with the sub-contractor. One of the trio allegedly accepted bribes of over $700,000, and perverted the course of public justice by instructing workers to make false statements to the ICAC claiming that they had not paid any bribes.Tang Kwok-leung, 48; Jiang Fa, 55; and Ting Shi-tong, 61; all former site team leaders of MLife Engineering Limited (MEL), were yesterday charged in separate cases with a total of 30 charges – 25 of agent accepting an advantage; three of conspiracy for agents to accept advantages; one of conspiracy to do an act tending and intended to pervert the course of public justice; and one of blackmail.The three defendants were released on ICAC bail, pending their appearance in the West Kowloon Magistrates’ Courts tomorrow (June 30). Jiang and Ting will appear in court for plea taking, while the prosecution will later apply for transferring Tang’s case to the District Court for plea.The ICAC had taken a series of enforcement actions against solicitation and acceptance of illegal rebates from construction workers in recent years. A total of 26 people, most of whom were site team leaders of a sub-contractor, were charged with collecting bribes totalling over $1.4 million from more than 130 workers in connection with the Third Runway Project. Eighteen out of the 23 former employees of the main contractor and a sub-contractor of the Third Runway Project charged earlier had pleaded guilty or were found guilty after trial, receiving sentences up to 16 months in jail. Three others are awaiting 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. In order to promote the anti-corruption message “Don’t pay illegal rebates” among construction workers, the ICAC has launched a series of publicity and education programmes, including a new online video entitled “Don’t tolerate illegal rebates! Report corruption!”..The three defendants, who were charged yesterday, were site team leaders of MEL at the material time. MEL was a sub-contractor of the Third Runway Project responsible for recruiting construction workers to conduct various works.In the first case, it is alleged that between June 2020 and March 2021, Tang conspired with two other site team leaders and other construction workers to accept bribes of $40 to $400 per working day from over 80 carpenters, general workers, riggers and electrical workers. The bribe payments received by the trio amounted to about $700,000. Tang also allegedly accepted from one of the site team leaders bribes of $100 to $200 per working day, totalling about $14,000.In addition, Tang allegedly conspired with that site team leader to instruct some workers to make false statements to ICAC officers that no rebates had been paid to the duo.In the second case, it is alleged that between March 2021 and April 2022, Jiang accepted bribes totalling over $66,000 from two carpenters, and demanded with menaces a daily payment of $300 per day from one of them in relation to his work.For the remaining case, Ting allegedly accepted bribes totalling over $22,000 from two workers between March and June 2022.ICAC enquiries revealed that the three defendants allegedly accepted bribes from workers for assisting them to secure or continue their employment with MEL, or assigning work to workers or manage them taking into account the bribes received.The Airport Authority Hong Kong, the relevant main contractor SAPR JV and MEL have rendered full assistance to the ICAC during its investigation into the case. 27
Jun 2023Subcontractor charged by ICAC guilty of inflating delivery fees to 'sweeten' manager of logistics companyA logistics subcontractor, charged by the ICAC, was today (June 27) convicted at the West Kowloon Magistrates’ Courts of bribery by inflating delivery fees and returning the differences to a manager of a logistics company as “sweetener” for maintaining a good relationship with the latter and his showing favour to the subcontractor in outsourcing various delivery orders worth totalling about HK$1.7 million.Liu Kwun-ming, 55, sole director cum shareholder of Fung Wing Logistics Co., Limited (Fung Wing), was found guilty of one count of conspiracy for an agent to accept advantages, contrary to section 9(1)(b) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance.Deputy Magistrate Miss Polly Chuang Po-yi adjourned the case to July 11 for sentence, pending the defendant’s background report. The defendant was remanded in the custody of the Correctional Services Department.The court heard that since April 2018, Fung Wing had been a subcontractor of Eas Da Tong International Trucking Company (Eas Da Tong) which provided cross-border logistics services to clients of its mother company – Kerry Logistics Network Limited (Kerry Logistics).Between April 2018 and April 2021, Eas Da Tong had placed delivery orders worth totalling about HK$1.7 million with Fung Wing. The orders were handled by a manager of another subsidiary of Kerry Logistics.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant conspired with his business partner in Fung Wing and the manager of Kerry Logistics’subsidiary to inflate the haulage charges on Fung Wing’s payment reports, and returned the price differences totalling over Renminbi 120,000 to the manager to maintain a good relationship with the latter for obtaining more delivery orders from Eas Da Tong.Kerry Logistics had rendered full assistance to the ICAC during its investigation into this case.The prosecution was today represented by Senior Public Prosecutor Clara Ma, assisted by ICAC officer Zac Ng. 27
Jun 2023Six charged by ICAC over $19m SME guaranteed loan fraud revealed in graft probeSix directors or proprietors of Small and Medium Enterprises (SMEs) were charged yesterday (June 26) in separate cases after it was revealed in the course of a corruption investigation by the ICAC that they allegedly conspired with others to defraud a bank to approve loans totalling about $19 million to six SMEs through the Special 100% Loan Guarantee (SLG) by making false representations concerning their sales turnovers and employees payrolls.Each of the six defendants, aged between 44 and 64, faces one count of conspiracy to defraud, contrary to Common Law. They are Yan Hoi-hung, proprietor of Candice Yan & Co.; Tony Fung Kam-fai, director-cum-shareholder of Dragon Win Motors China Company Limited; Tam Sui-kwan, director-cum-shareholder of Skylink Telecommunications Networks Limited; Wong Chin-fai, director of Hongkong Precreate Trading Co., Limited; Arri Wong Ka-nam, proprietor of 24 Hr Locksmith; and Wu Ting, director-cum-shareholder of Elation International Limited.The defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (June 28) for mention. The prosecution will apply for transferring the case to the District Court for plea.In April 2020, HKMC Insurance Limited (HKMCI) launched the SLG under the SME Financing Guarantee Scheme to loans approved by lenders, which were fully guaranteed by the government, to ease SMEs’ cash flow pressure under COVID-19 pandemic.At the material time, the maximum facility amount of the SLG was an SME’s total amount of wages paid to employees and rental payments for six months, or $4 million, whichever is the lower. Eligible SMEs must fulfil certain requirements, including having been in operation for at least three months in Hong Kong as at the end of 2019, and having suffered at least 30 per cent decline in sales turnover in any month since February 2020 compared with the monthly average of any quarter in 2019. An applicant was required to provide the relevant proof.Standard Chartered Bank (Hong Kong) Limited (Standard Chartered Bank) was one of the participating lenders. After confirming an application received was legitimate, Standard Chartered Bank would forward the application to HKMCI for final review and approval to grant a guarantee.Between April and September 2020, each of the six defendants allegedly conspired with other persons to defraud Standard Chartered Bank by dishonestly falsely representing that the documents submitted in relation to the sales turnovers and employees payrolls of their companies in support of the SLG applications were genuine and accurate; inducing and causing Standard Chartered Bank to approve six loans, each ranging from over $1 million to $4 million and totalling about $19 million, to the six SMEs.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the relevant proofs in relation to sales turnovers and employees payrolls of the SMEs were false, and some of the SMEs concerned defaulted on their loan repayments.As the relevant corruption investigation is continuing, the ICAC does not rule out further law enforcement actions.HKMCI and Standard Chartered Bank have rendered full assistance to the ICAC during its investigation into the cases.The ICAC has been arranging integrity training and providing corruption prevention resources for different industries. Business operators are reminded not to commit bribery or engage in illegal activities. For more information, please visit the webpage of "SMEs and Start-ups" under Hong Kong Business Ethics Development Centre. 26
Jun 2023Intermediary charged by ICAC with bribing bank manager over account openingThe general manager of an intermediary company, charged by the ICAC yesterday (June 25), was brought to the Eastern Magistrates’ Courts today (June 26) for allegedly offering bribes to a bank manager for assisting clients to open corporate accounts with the bank.Li Xiongwei, 33, general manager of Shenzhen City Huiteng Business Consultancy Company Limited (transliteration of 深圳市滙騰商務咨詢有限公司) (Huiteng), faced two counts of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance.No plea was taken today. Principal Magistrate Miss Ivy Chui Yee-mei adjourned the case to August 7 for mention. The defendant was granted bail.The defendant is the general manager of Huiteng, a consultancy which refers Mainland clients to open corporate accounts with banks in Hong Kong. In April this year, the defendant visited a branch of China CITIC Bank International Limited (CNCBI) to seek information on account opening applications. He was told that corporate account applicants who were non-Hong Kong residents would be required to pay a special handling fee of HK$10,000. The defendant had requested the manager of the branch to waive the relevant fee but his request was turned down.It is alleged that on April 14 and June 23 this year, the defendant offered a bribe of RMB7,000 to the branch manager for assisting in the approval of each bank account opening application with CNCBI referred by him.Upon receipt of a corruption complaint filed by CNCBI, the ICAC launched an investigation which revealed that the defendant had told the branch manager he would offer “tea money” of RMB7,000 to bank staff for each successful corporate account application.CNCBI has rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Shirley Lau.
Jun 2023Woman charged by ICAC jailed for 22 months over $5.7m mortgage loans fraudA mortgage loan applicant, charged by the ICAC, was today (June 29) sentenced to 22 months’ imprisonment after admitting at the District Court that she had deceived two financial institutions into granting her two mortgage loans totalling $5.7 million by fraudulent means. The offences were revealed in the course of a corruption investigation by the Commission.Cheung Pui-shan, 47, pleaded guilty to two counts of conspiracy to defraud, contrary to the Common Law.In sentencing, Deputy Judge Ms Ada Yim Shun-yee remarked that offences involved in this case were serious in nature. The defendant obtained loans by fraudulent means, warranting a deterrent sentence.The court heard that in 2011, the defendant acquired a property. In December 2014, she pledged the property and took out a mortgage loan of about $3.3 million (loan 1) from Wing Fung Credit Limited (WFL), a financial institution.Between December 2014 and April 2015, she further applied for two second mortgage loans in respect of the property with two other financial institutions through a loan agent. In order to apply for the two second mortgage loans, the defendant, under the arrangement and assistance of the loan agent, submitted to Universal Prestige Finance Company (UPL) a copy of the falsified agreement on loan 1 so as to falsely show that the amount of loan 1 was $1.24 million. She subsequently used the same means to make a false representation to KP Financial Services Limited (KPL) that the amount of loan 1 was $800,000.In the belief that the documents submitted by the defendant were true and accurate, UPL and KPL respectively granted her second mortgage loans of $2.4 million and $3.3 million.The ICAC investigation arose from a corruption complaint. It was revealed that at the material time, the market value of the above property was around $4.3 million to $5.4 million. Had UPL and KPL known the mortgage loan agreements provided by the defendant were false, they would not have granted her the second mortgage loans concerned as the accumulated mortgage amount exceeded the market value of the property at that time.Enquiries also revealed that upon receipt of second mortgage loans from UPL and KPL, the defendant passed about $590,000 as “tea money” to the loan agent.UPL, KPL and WFL had 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 May Lam. 29
Jun 2023Three more ex-site team leaders charged by ICAC with accepting bribes from 80 Third Runway Project construction workersThree former site team leaders of a sub-contractor of the Third Runway Project of the Hong Kong International Airport (Third Runway Project) were charged by the ICAC yesterday (June 28) for allegedly accepting bribes totalling over $800,000 from more than 80 construction workers in relation to their employment with the sub-contractor. One of the trio allegedly accepted bribes of over $700,000, and perverted the course of public justice by instructing workers to make false statements to the ICAC claiming that they had not paid any bribes.Tang Kwok-leung, 48; Jiang Fa, 55; and Ting Shi-tong, 61; all former site team leaders of MLife Engineering Limited (MEL), were yesterday charged in separate cases with a total of 30 charges – 25 of agent accepting an advantage; three of conspiracy for agents to accept advantages; one of conspiracy to do an act tending and intended to pervert the course of public justice; and one of blackmail.The three defendants were released on ICAC bail, pending their appearance in the West Kowloon Magistrates’ Courts tomorrow (June 30). Jiang and Ting will appear in court for plea taking, while the prosecution will later apply for transferring Tang’s case to the District Court for plea.The ICAC had taken a series of enforcement actions against solicitation and acceptance of illegal rebates from construction workers in recent years. A total of 26 people, most of whom were site team leaders of a sub-contractor, were charged with collecting bribes totalling over $1.4 million from more than 130 workers in connection with the Third Runway Project. Eighteen out of the 23 former employees of the main contractor and a sub-contractor of the Third Runway Project charged earlier had pleaded guilty or were found guilty after trial, receiving sentences up to 16 months in jail. Three others are awaiting 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. In order to promote the anti-corruption message “Don’t pay illegal rebates” among construction workers, the ICAC has launched a series of publicity and education programmes, including a new online video entitled “Don’t tolerate illegal rebates! Report corruption!”..The three defendants, who were charged yesterday, were site team leaders of MEL at the material time. MEL was a sub-contractor of the Third Runway Project responsible for recruiting construction workers to conduct various works.In the first case, it is alleged that between June 2020 and March 2021, Tang conspired with two other site team leaders and other construction workers to accept bribes of $40 to $400 per working day from over 80 carpenters, general workers, riggers and electrical workers. The bribe payments received by the trio amounted to about $700,000. Tang also allegedly accepted from one of the site team leaders bribes of $100 to $200 per working day, totalling about $14,000.In addition, Tang allegedly conspired with that site team leader to instruct some workers to make false statements to ICAC officers that no rebates had been paid to the duo.In the second case, it is alleged that between March 2021 and April 2022, Jiang accepted bribes totalling over $66,000 from two carpenters, and demanded with menaces a daily payment of $300 per day from one of them in relation to his work.For the remaining case, Ting allegedly accepted bribes totalling over $22,000 from two workers between March and June 2022.ICAC enquiries revealed that the three defendants allegedly accepted bribes from workers for assisting them to secure or continue their employment with MEL, or assigning work to workers or manage them taking into account the bribes received.The Airport Authority Hong Kong, the relevant main contractor SAPR JV and MEL have rendered full assistance to the ICAC during its investigation into the case. 27
Jun 2023Subcontractor charged by ICAC guilty of inflating delivery fees to 'sweeten' manager of logistics companyA logistics subcontractor, charged by the ICAC, was today (June 27) convicted at the West Kowloon Magistrates’ Courts of bribery by inflating delivery fees and returning the differences to a manager of a logistics company as “sweetener” for maintaining a good relationship with the latter and his showing favour to the subcontractor in outsourcing various delivery orders worth totalling about HK$1.7 million.Liu Kwun-ming, 55, sole director cum shareholder of Fung Wing Logistics Co., Limited (Fung Wing), was found guilty of one count of conspiracy for an agent to accept advantages, contrary to section 9(1)(b) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance.Deputy Magistrate Miss Polly Chuang Po-yi adjourned the case to July 11 for sentence, pending the defendant’s background report. The defendant was remanded in the custody of the Correctional Services Department.The court heard that since April 2018, Fung Wing had been a subcontractor of Eas Da Tong International Trucking Company (Eas Da Tong) which provided cross-border logistics services to clients of its mother company – Kerry Logistics Network Limited (Kerry Logistics).Between April 2018 and April 2021, Eas Da Tong had placed delivery orders worth totalling about HK$1.7 million with Fung Wing. The orders were handled by a manager of another subsidiary of Kerry Logistics.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant conspired with his business partner in Fung Wing and the manager of Kerry Logistics’subsidiary to inflate the haulage charges on Fung Wing’s payment reports, and returned the price differences totalling over Renminbi 120,000 to the manager to maintain a good relationship with the latter for obtaining more delivery orders from Eas Da Tong.Kerry Logistics had rendered full assistance to the ICAC during its investigation into this case.The prosecution was today represented by Senior Public Prosecutor Clara Ma, assisted by ICAC officer Zac Ng. 27
Jun 2023Six charged by ICAC over $19m SME guaranteed loan fraud revealed in graft probeSix directors or proprietors of Small and Medium Enterprises (SMEs) were charged yesterday (June 26) in separate cases after it was revealed in the course of a corruption investigation by the ICAC that they allegedly conspired with others to defraud a bank to approve loans totalling about $19 million to six SMEs through the Special 100% Loan Guarantee (SLG) by making false representations concerning their sales turnovers and employees payrolls.Each of the six defendants, aged between 44 and 64, faces one count of conspiracy to defraud, contrary to Common Law. They are Yan Hoi-hung, proprietor of Candice Yan & Co.; Tony Fung Kam-fai, director-cum-shareholder of Dragon Win Motors China Company Limited; Tam Sui-kwan, director-cum-shareholder of Skylink Telecommunications Networks Limited; Wong Chin-fai, director of Hongkong Precreate Trading Co., Limited; Arri Wong Ka-nam, proprietor of 24 Hr Locksmith; and Wu Ting, director-cum-shareholder of Elation International Limited.The defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (June 28) for mention. The prosecution will apply for transferring the case to the District Court for plea.In April 2020, HKMC Insurance Limited (HKMCI) launched the SLG under the SME Financing Guarantee Scheme to loans approved by lenders, which were fully guaranteed by the government, to ease SMEs’ cash flow pressure under COVID-19 pandemic.At the material time, the maximum facility amount of the SLG was an SME’s total amount of wages paid to employees and rental payments for six months, or $4 million, whichever is the lower. Eligible SMEs must fulfil certain requirements, including having been in operation for at least three months in Hong Kong as at the end of 2019, and having suffered at least 30 per cent decline in sales turnover in any month since February 2020 compared with the monthly average of any quarter in 2019. An applicant was required to provide the relevant proof.Standard Chartered Bank (Hong Kong) Limited (Standard Chartered Bank) was one of the participating lenders. After confirming an application received was legitimate, Standard Chartered Bank would forward the application to HKMCI for final review and approval to grant a guarantee.Between April and September 2020, each of the six defendants allegedly conspired with other persons to defraud Standard Chartered Bank by dishonestly falsely representing that the documents submitted in relation to the sales turnovers and employees payrolls of their companies in support of the SLG applications were genuine and accurate; inducing and causing Standard Chartered Bank to approve six loans, each ranging from over $1 million to $4 million and totalling about $19 million, to the six SMEs.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the relevant proofs in relation to sales turnovers and employees payrolls of the SMEs were false, and some of the SMEs concerned defaulted on their loan repayments.As the relevant corruption investigation is continuing, the ICAC does not rule out further law enforcement actions.HKMCI and Standard Chartered Bank have rendered full assistance to the ICAC during its investigation into the cases.The ICAC has been arranging integrity training and providing corruption prevention resources for different industries. Business operators are reminded not to commit bribery or engage in illegal activities. For more information, please visit the webpage of "SMEs and Start-ups" under Hong Kong Business Ethics Development Centre. 26
Jun 2023Intermediary charged by ICAC with bribing bank manager over account openingThe general manager of an intermediary company, charged by the ICAC yesterday (June 25), was brought to the Eastern Magistrates’ Courts today (June 26) for allegedly offering bribes to a bank manager for assisting clients to open corporate accounts with the bank.Li Xiongwei, 33, general manager of Shenzhen City Huiteng Business Consultancy Company Limited (transliteration of 深圳市滙騰商務咨詢有限公司) (Huiteng), faced two counts of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance.No plea was taken today. Principal Magistrate Miss Ivy Chui Yee-mei adjourned the case to August 7 for mention. The defendant was granted bail.The defendant is the general manager of Huiteng, a consultancy which refers Mainland clients to open corporate accounts with banks in Hong Kong. In April this year, the defendant visited a branch of China CITIC Bank International Limited (CNCBI) to seek information on account opening applications. He was told that corporate account applicants who were non-Hong Kong residents would be required to pay a special handling fee of HK$10,000. The defendant had requested the manager of the branch to waive the relevant fee but his request was turned down.It is alleged that on April 14 and June 23 this year, the defendant offered a bribe of RMB7,000 to the branch manager for assisting in the approval of each bank account opening application with CNCBI referred by him.Upon receipt of a corruption complaint filed by CNCBI, the ICAC launched an investigation which revealed that the defendant had told the branch manager he would offer “tea money” of RMB7,000 to bank staff for each successful corporate account application.CNCBI has rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Shirley Lau.