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Dec 2023Eight months’ jail for duo charged by ICAC for conspiring with dummy insurance agent to launder $270,000 in commissionsIn the course of a corruption investigation by the ICAC, it was revealed that two insurance agents had recruited another person to pose as dummy insurance agent to obtain commissions and bonuses totalling over $270,000 by making false representations that the latter had handled three insurance policies and collected most of the sum from the latter. The duo were today (December 19) each sentenced to eight months’ imprisonment at the Eastern Magistrates’ Courts after being convicted of conspiracy to launder crime proceeds.Cheng Yik-lut and Jovi Leung Kin-fung, both insurance agents and aged 30, were convicted of one count of conspiracy to deal with property known or believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance and Section 159A of the Crimes Ordinance.In sentencing, Deputy Magistrate Miss Chung Wing-sze said the offence warranted custodial sentences for the two insurance agents as they proactively arranged a dummy insurance agent to take part in the scam and dealt with the crime proceeds.The court heard that in 2019, the duo arranged Cheng Tsz-sing, cousin of Cheng Yik-lut, to pose as a dummy insurance agent at Chubb Life Insurance Company Limited (Chubb). Chubb subsequently received three insurance policy applications submitted by Cheng Yik-lut, in which Cheng Tsz-sing was named as the handling agent. As a result, Cheng Tsz-sing received commissions and bonuses of over $270,000 from Chubb.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Cheng Tsz-sing was not actually the handling agent of the three insurance policies. Upon the defendants’ request, Cheng Tsz-sing transferred over $240,000 to designated bank accounts and retained about $27,000 as his rewards.Cheng Tsz-sing was earlier charged with one count of conspiracy to launder crime proceeds in a separate case for taking part in the scam. He pleaded guilty to the charge and rendered assistance to the prosecution, leading to the successful prosecution of the two defendants in the present case. Sentencing of Cheng Tsz-sing was adjourned to January 31 next year.Chubb had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Mr Alexander Cheung, assisted by ICAC officers Teresa Cheung and Romeo Chu.The ICAC will continue to collaborate with the industry in providing integrity training to insurance intermediaries. The ICAC had earlier organised a Professional Anti-Corruption Training for Management in Insurance Sector for 28 insurance companies in order to enhance integrity management in the industry. For more information on the ICAC’s preventive and educational services for the industry, please visit the Ethics Promotion Website for the Insurance Industry produced by the Hong Kong Business Ethics Development Centre, and the Corruption Prevention Department’s Corruption Prevention Advisory Service Web Portal. 18
Dec 2023Two company directors charged by ICAC with US$8.5m bribery and money laundering over shipping consultancy contractA director of a shipping consultancy firm was charged by the ICAC today (December 18) for allegedly bribing a then senior executive of a financial company for engaging the director’s firm as the consultant of an iron ore shipping project which involved consultancy fees totalling over US$46.3 million. A director of another company, who allegedly handled part of the bribes, was also charged today for laundering crime proceeds of US$2.7 million.Zhu Kai, 59, sole director of Millennia Resources Limited (Millennia), faces one count of conspiracy for an agent to accept advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance.Shah Kabir Haresh, 43, director and sole shareholder of now defunct Global Era Limited (Global Era), faces one count of dealing with property known or reasonably believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance.The duo were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (December 19) for mention.At the material time, Millennia was a shipping consultancy firm incorporated in Hong Kong. Its sole director Zhu started to negotiate with an iron ore mining company for an iron ore shipping project. ICBC Financial Leasing Company Limited (ICBC Financial Leasing) subsequently took up the project and assigned an executive director of its shipping finance department to be the project manager. Upon the suggestion of the project manager, ICBC Financial Leasing engaged a sibling company of Millennia, namely Millennia Resources Shipping Limited (Millennia Shipping), as the consultant of the project.Zhu allegedly conspired with the project manager between April 2016 and April 2021 for the latter to accept US$8.5 million from Zhu, for engaging Millennia Shipping by ICBC Financial Leasing as a project consultant.It is also alleged that between October 2017 and March 2021, Shah Kabir Haresh dealt with US$2.7 million, knowing or believing that it represented proceeds of an indictable offence.ICAC enquiries revealed that Shah Kabir Haresh was acquainted with the project manager. He allegedly used the bank accounts of Global Era to receive part of the bribes for the project manager.ICAC enquiries also revealed that between 2016 and early 2023, Millennia Shipping received consultancy fees totalling over US$46.3 million from ICBC Financial Leasing.ICBC Financial Leasing has rendered full assistance to the ICAC during its investigation into the case. 14
Dec 2023Listed company trio charged as ICAC probe reveals $820,000 payment fraudThree former employees of a listed company were charged by the ICAC yesterday (December 13) with conspiracy to defraud after a corruption investigation revealed that the trio had allegedly induced the listed company to pay licence and service fees totalling about $820,000 to two companies by making false representations.The defendants were Anthony Cheng Hiu-tung, 46; former chief financial officer of Janco Holdings Limited (JHL); David Leung Tze-hang, 67, former group senior advisor of JHL; and Cheung Pik-ha, 57, former stakeholder relations manager of JHL.The trio jointly face two counts of conspiracy to defraud, contrary to Common Law. They were released on ICAC bail, pending their appearance at the Kwun Tong Magistrates’ Courts tomorrow (December 15) for mention.JHL is listed on the Growth Enterprise Market of the Stock Exchange of Hong Kong. Janco HealthCare Limited (JHC) and Janco Express Limited (JEL) are subsidiaries of JHL respectively focusing on business of healthcare products and logistics services.It is alleged that between June 2021 and April 2022, the trio conspired together to defraud JHL by falsely representing that JHC and JEL were due to pay a licence fee of a health product and a service fee for securing a loan from a lender totalling about $820,000, and with intent to defraud, induced JHL to make the payments to two companies.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the two companies had never made any licence agreement with JHL and had nothing to do with JHL’s loan agreement. It was also revealed that Cheng allegedly caused JHL to settle the payments in question with the two companies even though he was aware of the circumstances. Leung and Cheung were in control of the two companies and the proceeds generated from the scam.JHL and its subsidiaries have rendered full assistance to the ICAC during its investigation into the case.The ICAC reminds senior executives of listed companies to adhere to the legal and ethical obligations so as to safeguard the interest of different stakeholders. The ICAC continues to assist listed companies to enhance their corruption prevention capabilities and corporate governance. For details, please visit the webpage of the “Ethics Promotion Programme for Listed Companies” 14
Dec 2023Foreman and casual worker charged by ICAC jailed for conspiracy to defraud over false attendanceA then foreman and a then casual cleaning worker of a contractor of a public housing estate, charged by the ICAC, were today (December 14) respectively sentenced to seven months and five months in jail at the Eastern Magistrates’ Courts for conspiracy to defraud the contractor of wages totalling about $280,000 by falsifying the attendance records of cleaning workers. The offences were revealed in the course of a corruption investigation by the ICAC.Zhuang Ruiqing, 49, former foreman of Swan Hygiene services Limited (Swan Hygiene) was sentenced to a jail term of seven months; while Huang Kairong, 51, former casual cleaning worker of Swan Hygiene, was jailed for five months. The defendants were earlier each found guilty of one count of conspiracy to defraud, contrary to Common Law.In sentencing, Deputy Magistrate Ms Rachel Po Hi-hau said Zhuang was the instigator of the scam, while Huang’s offences involved a long period of time and a considerable amount of money, warranting deterrent sentences.At the material time, Swan Hygiene was the cleaning contractor of Lai Tak Tsuen, a public housing estate in Tai Hang. It was required to provide a foreman and 15 day-shift cleaning workers to work at the estate every day. Apart from full-time cleaning worker, Swan Hygiene also engaged Winngo Cleaning Services Limited (Winngo Cleaning) as a recruitment agency to hire casual cleaning workers to work at the estate. Swan Hygiene relied on the attendance information provided by Winngo Cleaning to calculate the wages of casual cleaning workers.As a foreman of Swan Hygiene, Zhuang was responsible for supervising cleaning workers at the estate, reporting the attendance information to Winngo Cleaning and distributing wages to casual cleaning workers in cash for Winngo Cleaning.The court heard that between March 2019 and September 2021, Zhuang separately referred Huang and another woman to work as casual cleaning workers at Lai Tak Tsuen. Upon the instruction of Zhuang, Huang and the woman respectively reported that they had worked at the estate for over 560 days and about 40 days. Believing that the attendance details provided by Winngo Cleaning was accurate, Swan Hygiene paid a total of about $280,000 to Winngo Cleaning as the wages of the duo.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Huang was in fact a full-time cleaning worker of a secondary school in Tai Hang at the material time. Around 400 days in the over 560 days Huang purportedly worked at Lai Tak Tsuen overlapped with his working days at the secondary school. Meanwhile, the woman had almost never worked at the estate. The duo only received wages totalling over $120,000 from Zhuang.Swan Hygiene and Winngo Cleaning had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Kenny Chan, assisted by ICAC officer Bonnie Mak. 13
Dec 2023Property investor and mother jailed for $750,000 agency commission fraud over shopping centre purchaseA property investor and his mother, charged by the ICAC, were today (December 13) each sentenced to 30 months’ imprisonment at the District Court for conspiracy to defraud by deceiving an investment partner into paying an agency commission of over $750,000 in the purchase of a shopping centre at $168 million revealed in a bribery probe.Tse Yiu-sing, 39, sole director-cum-shareholder of Landcorp Properties Limited (Landcorp), and his mother Sin Yuk-ling, 68, were earlier convicted of one count of conspiracy to defraud, contrary to Common Law.In sentencing, Deputy Judge Mr Kenneth Chan Ping-chau said the defendant committed the offence out of greed. The deputy judge added that deterrent sentences were inevitable as it was the responsibility of the court to maintain a level playing field for businesses in Hong Kong.The court heard that in June 2019, Tse invited an investment partner to jointly acquire Greenview Court Shopping Centre in Tsuen Wan. It was agreed that Total Link Limited (Total Link) would be acquired as a vehicle for purchasing the shopping centre. Sin and the investment partner respectively held 55 per cent shares and 45 per cent shares of Total Link, and all costs and profits in relation to the purchase of the shopping centre would be shared on a pro rata basis.In July 2019, Total Link signed a provisional sale and purchase agreement with the vendor via Midland Realty (Shops II) Limited (Midland) for purchasing the shopping centre at $168 million. Total Link was required to pay one per cent of the transaction price, i.e. $1.68 million, as agency commission to Midland. According to the above agreement, the investment partner should bear $750,000 of it.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Landcorp reached another agreement with Midland through Sin to procure the transaction. According to the agreement, Midland and Landcorp would cooperate to procure the transaction. Midland would retain 20 per cent of the agency commission concerned, while the remaining 80 per cent would be paid to Landcorp, which was owned by Tse.However, Tse and Sin concealed from the investment partner the agreement, with intent to induce the investment partner to pay $750,000 agency commission and to obtain the percentage of agency commission Landcorp entitled to receive.The transaction was eventually terminated and Total Link did not complete the purchase of the shopping centre.The prosecution was today represented by Senior Public Prosecutor Joey Lin, assisted by ICAC officer Chacha Chan.
Dec 2023Eight months’ jail for duo charged by ICAC for conspiring with dummy insurance agent to launder $270,000 in commissionsIn the course of a corruption investigation by the ICAC, it was revealed that two insurance agents had recruited another person to pose as dummy insurance agent to obtain commissions and bonuses totalling over $270,000 by making false representations that the latter had handled three insurance policies and collected most of the sum from the latter. The duo were today (December 19) each sentenced to eight months’ imprisonment at the Eastern Magistrates’ Courts after being convicted of conspiracy to launder crime proceeds.Cheng Yik-lut and Jovi Leung Kin-fung, both insurance agents and aged 30, were convicted of one count of conspiracy to deal with property known or believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance and Section 159A of the Crimes Ordinance.In sentencing, Deputy Magistrate Miss Chung Wing-sze said the offence warranted custodial sentences for the two insurance agents as they proactively arranged a dummy insurance agent to take part in the scam and dealt with the crime proceeds.The court heard that in 2019, the duo arranged Cheng Tsz-sing, cousin of Cheng Yik-lut, to pose as a dummy insurance agent at Chubb Life Insurance Company Limited (Chubb). Chubb subsequently received three insurance policy applications submitted by Cheng Yik-lut, in which Cheng Tsz-sing was named as the handling agent. As a result, Cheng Tsz-sing received commissions and bonuses of over $270,000 from Chubb.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Cheng Tsz-sing was not actually the handling agent of the three insurance policies. Upon the defendants’ request, Cheng Tsz-sing transferred over $240,000 to designated bank accounts and retained about $27,000 as his rewards.Cheng Tsz-sing was earlier charged with one count of conspiracy to launder crime proceeds in a separate case for taking part in the scam. He pleaded guilty to the charge and rendered assistance to the prosecution, leading to the successful prosecution of the two defendants in the present case. Sentencing of Cheng Tsz-sing was adjourned to January 31 next year.Chubb had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Mr Alexander Cheung, assisted by ICAC officers Teresa Cheung and Romeo Chu.The ICAC will continue to collaborate with the industry in providing integrity training to insurance intermediaries. The ICAC had earlier organised a Professional Anti-Corruption Training for Management in Insurance Sector for 28 insurance companies in order to enhance integrity management in the industry. For more information on the ICAC’s preventive and educational services for the industry, please visit the Ethics Promotion Website for the Insurance Industry produced by the Hong Kong Business Ethics Development Centre, and the Corruption Prevention Department’s Corruption Prevention Advisory Service Web Portal. 18
Dec 2023Two company directors charged by ICAC with US$8.5m bribery and money laundering over shipping consultancy contractA director of a shipping consultancy firm was charged by the ICAC today (December 18) for allegedly bribing a then senior executive of a financial company for engaging the director’s firm as the consultant of an iron ore shipping project which involved consultancy fees totalling over US$46.3 million. A director of another company, who allegedly handled part of the bribes, was also charged today for laundering crime proceeds of US$2.7 million.Zhu Kai, 59, sole director of Millennia Resources Limited (Millennia), faces one count of conspiracy for an agent to accept advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance.Shah Kabir Haresh, 43, director and sole shareholder of now defunct Global Era Limited (Global Era), faces one count of dealing with property known or reasonably believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance.The duo were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (December 19) for mention.At the material time, Millennia was a shipping consultancy firm incorporated in Hong Kong. Its sole director Zhu started to negotiate with an iron ore mining company for an iron ore shipping project. ICBC Financial Leasing Company Limited (ICBC Financial Leasing) subsequently took up the project and assigned an executive director of its shipping finance department to be the project manager. Upon the suggestion of the project manager, ICBC Financial Leasing engaged a sibling company of Millennia, namely Millennia Resources Shipping Limited (Millennia Shipping), as the consultant of the project.Zhu allegedly conspired with the project manager between April 2016 and April 2021 for the latter to accept US$8.5 million from Zhu, for engaging Millennia Shipping by ICBC Financial Leasing as a project consultant.It is also alleged that between October 2017 and March 2021, Shah Kabir Haresh dealt with US$2.7 million, knowing or believing that it represented proceeds of an indictable offence.ICAC enquiries revealed that Shah Kabir Haresh was acquainted with the project manager. He allegedly used the bank accounts of Global Era to receive part of the bribes for the project manager.ICAC enquiries also revealed that between 2016 and early 2023, Millennia Shipping received consultancy fees totalling over US$46.3 million from ICBC Financial Leasing.ICBC Financial Leasing has rendered full assistance to the ICAC during its investigation into the case. 14
Dec 2023Listed company trio charged as ICAC probe reveals $820,000 payment fraudThree former employees of a listed company were charged by the ICAC yesterday (December 13) with conspiracy to defraud after a corruption investigation revealed that the trio had allegedly induced the listed company to pay licence and service fees totalling about $820,000 to two companies by making false representations.The defendants were Anthony Cheng Hiu-tung, 46; former chief financial officer of Janco Holdings Limited (JHL); David Leung Tze-hang, 67, former group senior advisor of JHL; and Cheung Pik-ha, 57, former stakeholder relations manager of JHL.The trio jointly face two counts of conspiracy to defraud, contrary to Common Law. They were released on ICAC bail, pending their appearance at the Kwun Tong Magistrates’ Courts tomorrow (December 15) for mention.JHL is listed on the Growth Enterprise Market of the Stock Exchange of Hong Kong. Janco HealthCare Limited (JHC) and Janco Express Limited (JEL) are subsidiaries of JHL respectively focusing on business of healthcare products and logistics services.It is alleged that between June 2021 and April 2022, the trio conspired together to defraud JHL by falsely representing that JHC and JEL were due to pay a licence fee of a health product and a service fee for securing a loan from a lender totalling about $820,000, and with intent to defraud, induced JHL to make the payments to two companies.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the two companies had never made any licence agreement with JHL and had nothing to do with JHL’s loan agreement. It was also revealed that Cheng allegedly caused JHL to settle the payments in question with the two companies even though he was aware of the circumstances. Leung and Cheung were in control of the two companies and the proceeds generated from the scam.JHL and its subsidiaries have rendered full assistance to the ICAC during its investigation into the case.The ICAC reminds senior executives of listed companies to adhere to the legal and ethical obligations so as to safeguard the interest of different stakeholders. The ICAC continues to assist listed companies to enhance their corruption prevention capabilities and corporate governance. For details, please visit the webpage of the “Ethics Promotion Programme for Listed Companies” 14
Dec 2023Foreman and casual worker charged by ICAC jailed for conspiracy to defraud over false attendanceA then foreman and a then casual cleaning worker of a contractor of a public housing estate, charged by the ICAC, were today (December 14) respectively sentenced to seven months and five months in jail at the Eastern Magistrates’ Courts for conspiracy to defraud the contractor of wages totalling about $280,000 by falsifying the attendance records of cleaning workers. The offences were revealed in the course of a corruption investigation by the ICAC.Zhuang Ruiqing, 49, former foreman of Swan Hygiene services Limited (Swan Hygiene) was sentenced to a jail term of seven months; while Huang Kairong, 51, former casual cleaning worker of Swan Hygiene, was jailed for five months. The defendants were earlier each found guilty of one count of conspiracy to defraud, contrary to Common Law.In sentencing, Deputy Magistrate Ms Rachel Po Hi-hau said Zhuang was the instigator of the scam, while Huang’s offences involved a long period of time and a considerable amount of money, warranting deterrent sentences.At the material time, Swan Hygiene was the cleaning contractor of Lai Tak Tsuen, a public housing estate in Tai Hang. It was required to provide a foreman and 15 day-shift cleaning workers to work at the estate every day. Apart from full-time cleaning worker, Swan Hygiene also engaged Winngo Cleaning Services Limited (Winngo Cleaning) as a recruitment agency to hire casual cleaning workers to work at the estate. Swan Hygiene relied on the attendance information provided by Winngo Cleaning to calculate the wages of casual cleaning workers.As a foreman of Swan Hygiene, Zhuang was responsible for supervising cleaning workers at the estate, reporting the attendance information to Winngo Cleaning and distributing wages to casual cleaning workers in cash for Winngo Cleaning.The court heard that between March 2019 and September 2021, Zhuang separately referred Huang and another woman to work as casual cleaning workers at Lai Tak Tsuen. Upon the instruction of Zhuang, Huang and the woman respectively reported that they had worked at the estate for over 560 days and about 40 days. Believing that the attendance details provided by Winngo Cleaning was accurate, Swan Hygiene paid a total of about $280,000 to Winngo Cleaning as the wages of the duo.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Huang was in fact a full-time cleaning worker of a secondary school in Tai Hang at the material time. Around 400 days in the over 560 days Huang purportedly worked at Lai Tak Tsuen overlapped with his working days at the secondary school. Meanwhile, the woman had almost never worked at the estate. The duo only received wages totalling over $120,000 from Zhuang.Swan Hygiene and Winngo Cleaning had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Kenny Chan, assisted by ICAC officer Bonnie Mak. 13
Dec 2023Property investor and mother jailed for $750,000 agency commission fraud over shopping centre purchaseA property investor and his mother, charged by the ICAC, were today (December 13) each sentenced to 30 months’ imprisonment at the District Court for conspiracy to defraud by deceiving an investment partner into paying an agency commission of over $750,000 in the purchase of a shopping centre at $168 million revealed in a bribery probe.Tse Yiu-sing, 39, sole director-cum-shareholder of Landcorp Properties Limited (Landcorp), and his mother Sin Yuk-ling, 68, were earlier convicted of one count of conspiracy to defraud, contrary to Common Law.In sentencing, Deputy Judge Mr Kenneth Chan Ping-chau said the defendant committed the offence out of greed. The deputy judge added that deterrent sentences were inevitable as it was the responsibility of the court to maintain a level playing field for businesses in Hong Kong.The court heard that in June 2019, Tse invited an investment partner to jointly acquire Greenview Court Shopping Centre in Tsuen Wan. It was agreed that Total Link Limited (Total Link) would be acquired as a vehicle for purchasing the shopping centre. Sin and the investment partner respectively held 55 per cent shares and 45 per cent shares of Total Link, and all costs and profits in relation to the purchase of the shopping centre would be shared on a pro rata basis.In July 2019, Total Link signed a provisional sale and purchase agreement with the vendor via Midland Realty (Shops II) Limited (Midland) for purchasing the shopping centre at $168 million. Total Link was required to pay one per cent of the transaction price, i.e. $1.68 million, as agency commission to Midland. According to the above agreement, the investment partner should bear $750,000 of it.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Landcorp reached another agreement with Midland through Sin to procure the transaction. According to the agreement, Midland and Landcorp would cooperate to procure the transaction. Midland would retain 20 per cent of the agency commission concerned, while the remaining 80 per cent would be paid to Landcorp, which was owned by Tse.However, Tse and Sin concealed from the investment partner the agreement, with intent to induce the investment partner to pay $750,000 agency commission and to obtain the percentage of agency commission Landcorp entitled to receive.The transaction was eventually terminated and Total Link did not complete the purchase of the shopping centre.The prosecution was today represented by Senior Public Prosecutor Joey Lin, assisted by ICAC officer Chacha Chan.