Recent ICAC Cases


16
Apr 2024
Two more charged by ICAC with accepting $200,000 bribes over workers’ employment in Third Runway Project, as cumulative bribe payments amounted to over $1.6mIn recent years, the ICAC has taken a series of enforcement actions against solicitation and acceptance of bribe payments from construction workers. Today (April 16) two more former employees of the main contractor and a sub-contractor of the Third Runway Project of the Hong Kong International Airport (Third Runway Project) were charged by the ICAC with accepting bribes of over $200,000 from an asphalt worker in relation to his employment with the sub-contractor. Arising from the relevant investigation, the Commission has so far charged a total of 28 persons, involving bribe payments totalling over $1.6 million.Paul Yu Wai-lun, 45, former foreman of SAPR JV; and Chan Ming-cheong, 39, former worker of MLife Engineering Limited (MEL), jointly face one count of conspiracy for agents to accept advantages, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance.The duo were released on ICAC bail, pending their appearance at the West Kowloon Magistrates’ Courts on Thursday (April 18) for plea.The present case took place between January 2021 and June 2022. At that time, SAPR JV was the main contractor of the Third Runway Project and its sub-contractor MEL was responsible for recruiting construction workers to conduct various works. Yu was a foreman of SAPR JV overseeing asphalt workers, including Chan, at the project’s construction site. Since January 2021, an asphalt worker started to work for the project at a daily wage of over $1,400 with overtime allowances.It is alleged that at the material time, Yu and Chan conspired together to accept bribe payments totalling over $200,000 from the aforementioned worker for assisting him to continue his employment with MEL.ICAC enquiries revealed that Yu and Chan allegedly solicited from the worker a daily bribe ranging from over $250 to $450 together with part of his overtime allowances. The worker acceded to their request in the following one and a half years to avoid from being terminated by the defendants.The ICAC has so far charged 28 people, most of whom were site team leaders of a sub-contractor, for collecting bribes totalling over $1.6 million from more than 130 workers of the Third Runway Project. Twenty-one defendants had pleaded guilty or were found guilty after trial, receiving sentences up to 16 months in jail. Two 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 reject and report to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366. The ICAC calls on construction companies to adopt the Integrity Risk Management (IRM) Toolkit on recruitment of workers produced by the ICAC to formulate and implement control measures to mitigate integrity risks on recruitment of workers, uplift the integrity management capability and uphold professionalism of the construction industry. IRM Toolkit on recruitment of workers is available at cpas.icac.hk/EN/Info/TP_Library?cate_id=10027.The Airport Authority Hong Kong, SAPR JV and MEL have rendered full assistance to the ICAC during its investigation into the case.
15
Apr 2024
Three former insurance agents charged by ICAC jailed for 25 to 34 months for conspiracy to defraud over commissions and bonuses totalling $950,000Three former insurance agents, charged by the ICAC, were today (April 15) sentenced at the District Court to jail terms ranging from 25 months to 34 months for conspiracy to defraud an insurance company into paying commissions and bonuses totalling about $950,000 by making false representations about the handling agents of 10 policies.Chan Ka-wo, 38, former branch manager of AXA China Region Insurance Company Limited (AXA), received a jail term of 34 months; Tsang Tsz-long, 30, and Lam Tsz-him, 35; both former insurance agents of AXA, were respectively jailed for 28 months and 25 months. The trio were earlier convicted of one count of conspiracy to defraud, contrary to the Common Law.In sentencing, Judge Mr Edmond Lee Chun-man remarked that the offence committed by the defendants constituted a breach of trust and the scam involved sophisticated planning by the trio. Hence, immediate custodial sentences were meted out.The court heard that at the material time, Chan was the up-line manager of Tsang and Lam. In the course of selling an insurance product of AXA, a handling agent was required to declare that he or she had asked the applicant the questions on the policy application form, verified the identity of the applicant and witnessed the applicant’s signature on the policy application form.Whenever an insurance product was successfully sold, the handling agents and his or her up-line manager would respectively receive commissions and overriding commissions from AXA. They were also entitled to various kinds of bonuses.Between November 25, 2014 and September 28, 2017, the three defendants conspired together to use 10 policies in which Lam, Tsang and others were falsely represented as the handling agents to defraud AXA to release commissions and bonuses totalling about $950,000 to them.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Lam and Tsang did not handle those insurance policies, which eventually lapsed due to default payment of premiums.AXA had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Michael Delaney, assisted by ICAC officer Leung Po-shan.The ICAC will continue to collaborate with the insurance industry in providing integrity training to practitioners, as well as tips on managing staff integrity for managerial staff. For more information, please visit the Ethics Promotion Website for the Insurance Industry produced by the Hong Kong Business Ethics Development Centre.
11
Apr 2024
Joint Press release: IA and ICAC conduct first joint operation against suspected unlicensed selling to Mainland visitorsThe Insurance Authority (IA) and the ICAC have conducted their first joint operation targeting corrupt conduct in the unlicensed sale of insurance policies to Mainland customers. The joint operation was conducted pursuant to the Memorandum of Understanding (MoU) signed by the ICAC and the IA on October 26, 2023.Search warrants were executed by the IA and the ICAC on two consecutive days (April 10 and 11) at four premises, including the offices of a licensed insurance broker company and a referral company. In the joint operation, the ICAC also arrested an individual broker and a referrer.The companies and individuals concerned are suspected of having engaged in, or conspired with others to carry on unlicensed regulated activities in contravention of the Insurance Ordinance (Note 1) and also of suspected offences of agent using documents with intent to deceive his principal under the Prevention of Bribery Ordinance. Breaches of the Code of Conduct for Licensed Insurance Brokers are also suspected to have been committed.The investigation concerns the suspected engagement and incentivisation of referrers by a broker company to carry on regulated activities (advising on and selling of insurance policies) on its behalf, even though such referrers do not have the requisite licence to do this. The broker company offered to pay inordinately high referral fees on successful sales, apparently incentivising its referrers to induce customers from the Mainland to buy long-term insurance policies from authorized insurers in Hong Kong. In some cases, referrers appear to have been paid over 90% of the commission received by the broker company. Although the broker company submitted the insurance application forms to insurers, the substantial regulated activities were apparently performed by referrers prior to customers having any engagement with the broker company.In the investigation, the individual broker and the referrer are also suspected of corruptly conspiring to include false information in application forms submitted to the Hong Kong insurers underwriting the policies, including the annual income and amount of assets held by Mainland customers.Mr Peter Gregoire, Head of Market Conduct and General Counsel of the IA, said: “Our partnership with the ICAC in carrying out this joint operation demonstrates our shared determination to uphold proper sales practices in the insurance industry, ensure the market is founded on trust and integrity, and thereby provide confidence to all persons who look to the Hong Kong insurance market to meet their insurance needs. This close collaboration will continue not only through joint enforcement measures but also through industry training via the Hong Kong International Academy Against Corruption to enhance corporate governance standards and public education to empower consumers.”Deputy Commissioner and Head of Operations of the ICAC, Mr Ricky Yau Shu-chun, said: “The MoU signed between the ICAC and the IA last year strengthened our cooperation in referral of cases, joint investigations, training and exchange of information. Last month, IA representatives attended a three-day Training on Joint Operations organised by the ICAC for local regulatory bodies to enhance officers’ capability of combating financial crime and corruption. This joint operation showcases our common goal in upholding the integrity of the insurance industry. The ICAC will continue to closely collaborate with the IA, as well as other financial regulators, to combat corruption, illicit activities and misconduct relating to the financial sector. We will strive to maintain a fair business environment in Hong Kong, to sustain Hong Kong’s status as a clean international financial centre and to ensure the trust of stakeholders in the financial system.”No further comment will be made by the IA or the ICAC at this stage as the investigation is ongoing. The IA urges all authorized insurers and licensed insurance intermediaries to comply with the Insurance Ordinance, and undertakes to continue to take swift and firm enforcement actions to curb the abovementioned activities and / or any other misconduct.Notes:1. Section 64G of the Insurance Ordinance stipulates that “A person must not carry on a regulated activity in the course of the person’s business or employment; or for reward.” It is also stipulated that “A person must not hold out that the person is carrying on a regulated activity in the course of the person’s business or employment; or is carrying on a regulated activity for reward.” A person who, without reasonable excuse, contravenes the above commits an offence and is liable on conviction on indictment to a maximum fine of $1,000,000 and imprisonment for 2 years.
09
Apr 2024
Ex-employee of Chinese restaurant charged by ICAC admits theft over revised billsA former employee of a Chinese restaurant, charged by the ICAC, today (April 9) admitted at the Eastern Magistrates’ Courts that she had stolen over $23,000 from the restaurant by revising the relevant records in the computer system of the restaurant after customers had paid the bills.Leung Tsz-ying, 35, former clerk cum substitute cashier of Lei Garden Restaurant, pleaded guilty to five counts of theft, contrary to Section 9 of the Theft Ordinance.Principal Magistrate Miss Ivy Chui Yee-mei adjourned the case to April 23 for sentence, pending the defendant’s background report. The defendant was remanded in custody of the Correctional Services Department.When the case took place between December 2019 and December 2021, the defendant was a clerk cum substitute cashier of a branch of Lei Garden Restaurant in Central. She was authorised to revise or cancel customer orders in the computer system of the restaurant.The court heard that the defendant deleted the number of dishes ordered and served in the computer systems after three customers had paid their bills totalling over $20,000, misleading Lei Garden Restaurant that their bills added up to about $15,000 in total, to facilitate the defendant’s pocketing of the difference of about $5,000.In addition, the defendant stole $13,300 maintained in the meal expenses deposit account of a customer of Lei Garden Restaurant. In order to cover up her misappropriation, she deposited about $5,200 into the account after stealing the sum from another customer by the same fraudulent means of cancelling orders in the computer system.The ICAC investigation arose from a corruption complaint. Subsequent enquiries revealed the theft offences committed by the defendant. Lei Garden Restaurant had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Jackie Lam.
05
Apr 2024
HZMB shuttle bus casual worker charged by ICAC for soliciting bribe from tourists over boarding during pandemicA casual worker of the Hong Kong-Zhuhai-Macao Bridge (HZMB) shuttle bus was charged by the ICAC on Wednesday (April 3) for allegedly soliciting a bribe for assisting two tourists to board a shuttle bus departing for Zhuhai from Hong Kong before the Chinese New Year’s Eve last year.Ng Kwong-lung, 35, then casual worker of Hong Kong-Zhuhai-Macao Bridge Shuttle Bus Company Limited (HZMBus), faces one count of agent soliciting an advantage and one count of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance. He was released on ICAC bail, pending his appearance at the West Kowloon Magistrates’ Courts next Monday (April 8) for plea.HZMBus operates the HZMB shuttle bus service which runs between Hong Kong and Zhuhai. At the material time, HZMB shuttle bus was allowed to carry a specific number of passengers daily from Hong Kong to Zhuhai in view of the Mainland anti-pandemic measures. Only passengers with valid tickets booked through online real-name reservation were allowed to board the shuttle bus.The defendant was tasked to assist passengers to board the shuttle bus at the Hong Kong Port of the HZMB, including verifying whether passengers at the check-in gate got valid tickets for that day.On January 20, 2023 the defendant allegedly solicited a bribe of $1,000 from two Mainland tourists for assisting them to board a HZMB shuttle bus heading to Zhuhai, and accepted a bribe of RMB 500 from one of the duo.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the two tourists arrived at the Hong Kong Port of the HZMB in late evening of January 20, 2023, the day before the Chinese New Year’s Eve. They sought assistance from the defendant as they did not manage to secure any ticket for the day or the following day. ICAC investigation also revealed that one of them subsequently declined the defendant’s solicitation.HZMBus has rendered full assistance to the ICAC during its investigation into the case.

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