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Aug 2024Joint Press release: ICAC and Competition Commission conduct second joint operation against corruption and bid-rigging over building maintenanceThe ICAC and the Competition Commission conducted a joint operation code-named “Shotgun” for two consecutive days on August 21 and 22, following the two agencies’ first collaborated action in mid-April against a newly-rising syndicate engaging in corruption and bid-rigging. After a four-month in-depth investigation and detailed analysis of evidence collected, the two agencies discovered that the syndicate might have been involved in other suspected corruption and bid-rigging activities and therefore took further enforcement actions.The ICAC further arrested five persons and interviewed 22 persons during this operation, including project contractors, project consultants, middlemen, members of property management companies, and members of Incorporated Owners (IO).In the joint operation, search warrants were executed by the ICAC and the Competition Commission to conduct searches at around 20 premises, including the offices of various project contractors, consultancies, as well as residences of the individuals concerned. Various exhibits were seized. The Competition Commission has also exercised its compulsory powers in the operation, requesting relevant companies and individuals to produce documents and information, and to attend before the Competition Commission to provide information relating to the case.The companies and individuals concerned were alleged to have solicited and accepted bribes and engaged in anti-competitive activities in order to manipulate the tendering exercises of building maintenance projects. They were also alleged to have exaggerated contract sums and assisted associated contractors in securing contracts of the projects.The investigation of ICAC mainly targeted renovation projects of two residential estates in Hong Kong Island, whereby corruption was suspected. The value of the two renovation project contracts was worth about $140 million in total. It is alleged that the backbone members of the syndicate, through a middle man, might have offered advantages to the IO members in order to ensure that the associated project contractors controlled by the syndicate would be awarded the renovation contracts of the two residential estates respectively, thus contravening section 9 of the Prevention of Bribery Ordinance (POBO). The renovation projects concerned have yet to be executed.Meanwhile, the investigation conducted by the Competition Commission concerned renovation projects of 38 residential estates / buildings, and industrial buildings in Hong Kong Island, Kowloon and the New Territories. The value of the relevant renovation contracts totalled over $1 billion, with individual contracts worth as much as $260 million. Some of the renovation contracts concerned have yet to be awarded and some had been overturned, while works of individual projects had commenced prior to the commencement of the Competition Commission’s investigations.During the tendering of renovation projects for the 38 aforementioned buildings, the companies and individuals concerned had allegedly manipulated the tender results by exchanging and coordinating bidding prices, either directly or through intermediaries, while some contractors had submitted cover bids. Such conduct would amount to bid-rigging, price-fixing and exchange of competitively sensitive information, contravening the First Conduct Rule of the Competition Ordinance.As investigation is ongoing, no further comment on the case will be made by the ICAC and the Competition Commission at this stage.The series of joint operations conducted by the ICAC and the Competition Commission demonstrate the determination of the two agencies in safeguarding a clean and level-playing field for the building maintenance industry, and that no corruption and anti-competitive conduct will be tolerated. The two agencies will continue to maintain close collaboration with other law enforcement agencies and related authorities to crack down on illegal activities and to safeguard the rights of property owners.The ICAC calls on property owners and members of the public that, should they suspect corruption is involved in building maintenance, they should make enquiries or report to the ICAC without delay. The ICAC’s report corruption hotline: 25 266 366. The Competition Commission calls on anyone who can provide information on the matter or the relevant practices to contact the Competition Commission as soon as possible by telephone on 3462 2118 or by e-mail at complaints@compcomm.hk. Those who consider that they may have engaged or been involved in cartel conduct should approach the Commission as soon as possible for leniency or co-operation (Leniency Hotline: 3996 8010; e-mail: leniency@compcomm.hk).The ICAC has all along been taking stringent enforcement action against corruption in the building management sector. The ICAC also actively supports flat owners and building management bodies (BMBs) in enhancing their anti-corruption capability through corruption prevention and education. The ICAC will continue to proactively approach BMBs and adopt an early intervention strategy, as well as to encourage flat owners to stay vigilant against corruption in renovation works through active participation in building management. To address the corruption risks in building maintenance projects, the ICAC has compiled and distributed the “Corruption Prevention 101 – Building Maintenance Tips” leaflet to provide corruption prevention suggestions and relevant information for owners. Members of the public can download the leaflet from the ICAC Corruption Prevention Advisory Service webpage (cpas.icac.hk). In collaboration with different government departments, regulators, professional bodies and trade associations, the ICAC will continue to organise integrity training to enhance practitioners’ professional conduct and resistance to bribery temptations. The ICAC has also produced a wide range of practical education resources which are available in the Integrity and Quality Building Management website (bm.icac.hk). Citizens are also welcome to call the Integrity Building Management Enquiry Hotline at 2929 4555 for ICAC services.Apart from enforcement actions, the Competition Commission has been actively launching publicity and educational initiatives to raise public awareness of bid-rigging and other anti-competitive conduct, and to assist procurers in strengthening their preventive efforts. In addition to rolling out a series of educational resources on its website, the Commission also spares no effort in engaging with the community. Over the past year, the Competition Commission has attended 19 briefings on building maintenance and management, reaching out to property owners and property managers in various districts, as well as relevant government departments and public bodies, to promote the message of combatting bid-rigging. Separately, the Competition Commission has also published a set of model “Non-collusion Clauses” for procurers to incorporate into their invitation to bid documents and contracts, with a view to reducing their exposure to anti-competitive conduct during procurement exercises. In essence, the “Non-collusion Clauses” serve to warn bidders of the prohibition against, and consequences of, entering into anti-competitive arrangements, as well as to provide a clear and straightforward contractual remedy for procurers in the event that these clauses have been breached. Both Chinese and English versions of the model clauses are available for downloading at www.compcomm.hk. 26
Aug 2024Woman charged by ICAC gets 24 months’ jail for $530,000 fraud over SWD’s traffic accident assistance payments and insurance claimsA woman, her husband and a relative of them were earlier charged by the ICAC for defrauding the Social Welfare Department (SWD) of Traffic Accident Victim Assistance (TAVA) payments and insurance companies of related compensation by allegedly making false representations about their injuries in traffic accidents. The wife, who earlier admitted that she had defrauded the SWD and three insurers out of a total of about $530,000, was today (August 26) sentenced at the Eastern Magistrates’ Courts to 24 months’ imprisonment.Chong Siu-fong, 41, beauty consultant, earlier pleaded guilty to five charges in two separate cases – two of fraud, contrary to section 16A of the Theft Ordinance; and three of conspiracy to defraud, contrary to the Common Law.In sentencing, Deputy Magistrate Ms Cindy Li Shantong remarked that the offences involved in the case were serious in nature as the defendant had defrauded the government of public funds, warranting an immediate custodial sentence.The court heard that SWD’s TAVA Scheme provided immediate financial assistance to traffic accident victims where applicants were required to submit application forms and sick leave certificates to the SWD.At the material time, Chong was employed by a cosmetic company. She had taken out medical and accident insurance policies with several insurers, including AIA International Limited (AIA), FWD Life Insurance Company (Bermuda) Limited (FWD) and Prudential Hong Kong Limited (Prudential).Between July 2020 and September 2022, Chong submitted two TAVA applications to the SWD, claiming that she was injured in two traffic accidents. She also made insurance claims from the three insurers on one of the traffic accidents.The SWD subsequently granted two TAVA payments totalling about $300,000 to Chong, while the three insurers released three sums of medical compensation totalling over $230,000 to her.The ICAC investigation arose from a corruption complaint in relation to the insurance claims. Enquiries revealed that Chong not only submitted false sick leave certificates when she filed applications with the SWD and the three insurers, she also falsely claimed that she was a housewife with no earnings, and that she had not filed applications with other insurers in respect of the traffic accidents concerned.Chong’s husband Yeung Ping-wai, 42, part-time chef, was also charged by the ICAC for his role in the scam. He earlier pleaded not guilty to one count of fraud at the Eastern Magistrates’ Courts. His case was scheduled for September 3 for a pre-trial review.Co-defendant Chan Hok-yan, 44, unemployed and ex-spouse of Chong’s elder sister, was earlier charged with one count of fraud and six counts of conspiracy to defraud. He failed to attend court on March 8 this year and a warrant for his arrest was issued by the Eastern Magistrates’ Courts on the same day.The SWD and the insurers concerned, namely AIA, FWD and Prudential, had rendered full assistance to the ICAC during its investigation into the cases.The prosecution was today represented by ICAC officers Teresa Cheung and Romeo Chu. 07
May 2024Trading company duo charged by ICAC for offering over HK$1m bribes to vice president of bank over receipt of fundA director and a representative of a trading company were charged by the ICAC today (May 6) for allegedly offering bribes totalling HK$1.02 million to a vice president of a bank for assisting the company to receive an investment fund claimed to amount to $200 billion euros through its account held with the bank.Wammy Ngan Wang-lai and Jiang Jiaxin, respectively sole director cum shareholder and representative of Hong Kong Chinese Reserve International Company Limited (Chinese Reserve), both 55, jointly face two charges – one of conspiracy to offer an advantage to an agent and one of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance (POBO) and Section 159A of the Crimes Ordinance.The two defendants were released on ICAC bail, pending their appearance in the Eastern Magistrates’ Courts on Wednesday (May 8) for mention. The prosecution will apply for transferring the case to the District Court for plea.At the material time, Chinese Reserve held a bank account with DBS Bank (Hong Kong) Limited (DBS Bank), which required its customers to provide supporting documents in respect of large transactions for verification for due diligence purpose.It is alleged that between July and August 2023, the defendants conspired together to offer two bribe payments of HK$1 million and HK$20,000 respectively to a vice president of DBS Bank for assisting Chinese Reserve to re-activate its dormant bank account held with DBS Bank in order to receive an investment fund through the account.The vice president rejected the defendants’ offers and reported the matter to the bank. The ICAC subsequently received a corruption complaint and conducted an investigation. Enquiries revealed that Ngan claimed that Chinese Reserve had to receive an investment fund of $200 billion euros through its bank account held with DBS Bank and allegedly provided false documents to the bank.The ICAC reminds members of the public not to bribe bank staff in exchange for its services, otherwise it may constitute breaches of the POBO. Should anyone comes across any suspicion of corruption, he or she should report to the ICAC immediately. ICAC 24-hour Report Corruption Hotline: 25 266 366.The ICAC has been actively promoting corruption prevention services to banks and enhancing banking practitioners’ knowledge on the anti-corruption laws. The newly launched “Corruption Prevention Guide for Banks” assists banks in managing corruption risks in core operations, including accounts opening. An Ethics Promotion Programme for the Banking Industry was also launched to help bank staff to understand common corruption loopholes.DBS Bank has rendered full assistance to the ICAC during its investigation into the case. 09
Feb 2023Security supervisor jailed for soliciting bribes from subordinateA security supervisor, charged by the ICAC, was today (February 7) sentenced to five months’ imprisonment at the Shatin Magistrates’ Courts for soliciting bribes of over $10,000 from a subordinate security guard for assisting the latter to get promoted to assistant security supervisor.Luk Pui-suet, 54, supervisor of Hong Kong Guards Limited (HKGL), was earlier found guilty of two counts of agent soliciting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO).In sentencing, Magistrate Mr Pang Leung-ting reprimanded Luk for showing no remorse. The offences involved were serious in nature since Luk solicited advantages from a subordinate in her capacity as a direct supervisor so as to exert influence over the subordinate’s promotion. The magistrate took a starting point of six months’ imprisonment and reduced Luk’s jail term by one month after taking into account various mitigating factors.The court heard that at the material time, Luk was an assistant supervisor of HKGL posted to Shui Chuen O Estate, a public housing estate in Shatin. She was one of the three assistant supervisors of the estate responsible for assisting to manage about 40 security guards.In November 2020, one of the security guards Tang Kam-ngau asked Luk about his chance of promotion. Tang believed that Luk would succeed the then supervisor after the latter’s retirement in mid-December 2020, leading to an assistant supervisor vacant post.Afterwards, Luk told Tang on two occasions that she would assume the post of supervisor and solicited two bribes, one of $5,000 to $8,000 and another of at least $5,000, from Tang for assisting him to get promoted to assistant supervisor.Tang gave Luk a red packet containing $2,000 cash, but Luk did not accept the red packet as the amount did not meet $5,000.HKGL prohibited its staff members from soliciting and accepting advantages in relation to their official duties. HKGL had rendered full assistance to the ICAC during its investigation into the case.Tang Kam-ngau, the security guard concerned, was earlier charged by the ICAC with bribery in a separate case. He pleaded guilty to three counts of offering an advantage to an agent and sentencing was adjourned to this Friday (February 10).The prosecution was today represented by Senior Public Prosecutor Rosa Lo, assisted by ICAC officer Jeff Ng. 08
Aug 2022Two ex-insurance agents charged by ICAC sentenced for $700,000 commission and compensation fraudTwo former insurance agents, charged by the ICAC, were respectively sentenced to 18 months’ jail and 160 hours of community service at the District Court today (August 5) for deceiving an insurer into releasing commissions and compensation totalling about $700,000 by making false representations on the occupations and incomes of nine insurance policy applicants, and falsely representing that they were injured after the insurance policies were successfully taken out.Leung King-kei 36, former insurance agent of AIA International Limited (AIA), was sentenced to 18 months’ imprisonment. He earlier pleaded guilty to five counts of fraud, contrary to Section 16A of the Theft Ordinance; and four counts of conspiracy to defraud, contrary to Common Law.Co-defendant Yu Shing-yin, 36, former insurance agent of AIA, who earlier pleaded guilty to one count of conspiracy to defraud jointly charged with Leung, was today ordered to perform 160 hours of community service.Judge Mr Gary Lam Kar-yan reprimanded the defendants for their breach of trust. In sentencing Leung, the judge said he took a starting point of 30 months’ imprisonment and reduced the jail term to 18 months having considered Leung’s guilty plea and repayment to his former employer. A community service order was imposed on Yu in view of the relatively minor role he played in the scam.The court heard that AIA provided different insurance products to its clients. When processing an application for taking out an insurance policy, AIA would consider the client’s occupation, annual income and medical history, etc.The offences took place between July 2016 and July 2018. At the material time, Leung was an insurance agent of AIA. After being promoted to unit manager in December 2017, he was entitled to receive overriding commissions. Yu was Leung’s down-line insurance agent.The court heard that Leung had alone or conspired together with Yu, another down-line insurance agent and four policyholders to defraud AIA by making false representations on the occupations of the policyholders and monthly incomes of nine policyholders in nine insurance policy applications.AIA approved the nine insurance policy applications and paid commissions totalling about $95,000 to Leung and his down-line insurance agents.ICAC investigation revealed that false representations were made on the policyholders’ injuries in the relevant insurance claims, causing AIA to release insurance compensations totalling about $600,000 to the policyholders.The investigation arose from a corruption complaint filed with the ICAC. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charging Leung and Yu. Some of the above policyholders and down-line insurance agents were earlier charged by the ICAC in separate cases and pleaded guilty to their respective charges. Their cases are adjourned to mid-August for sentence.AIA had rendered full assistance to the ICAC during its investigation.The prosecution was today represented by Public Prosecutor Caddy Mo, assisted by ICAC officer Keaton Ma.The ICAC will continue to join hands with the industry to promote integrity and anti-corruption messages to insurers and insurance practitioners. In collaboration with the industry, the Commission had produced a guidebook which assisted insurers to strengthen their corruption prevention capabilities in key operational areas such as verification of commissions and claims.ICAC’s dedicated webpage tailor-made for the insurance industry“Corruption Prevention Guide for Insurance Companies”
Aug 2024Joint Press release: ICAC and Competition Commission conduct second joint operation against corruption and bid-rigging over building maintenanceThe ICAC and the Competition Commission conducted a joint operation code-named “Shotgun” for two consecutive days on August 21 and 22, following the two agencies’ first collaborated action in mid-April against a newly-rising syndicate engaging in corruption and bid-rigging. After a four-month in-depth investigation and detailed analysis of evidence collected, the two agencies discovered that the syndicate might have been involved in other suspected corruption and bid-rigging activities and therefore took further enforcement actions.The ICAC further arrested five persons and interviewed 22 persons during this operation, including project contractors, project consultants, middlemen, members of property management companies, and members of Incorporated Owners (IO).In the joint operation, search warrants were executed by the ICAC and the Competition Commission to conduct searches at around 20 premises, including the offices of various project contractors, consultancies, as well as residences of the individuals concerned. Various exhibits were seized. The Competition Commission has also exercised its compulsory powers in the operation, requesting relevant companies and individuals to produce documents and information, and to attend before the Competition Commission to provide information relating to the case.The companies and individuals concerned were alleged to have solicited and accepted bribes and engaged in anti-competitive activities in order to manipulate the tendering exercises of building maintenance projects. They were also alleged to have exaggerated contract sums and assisted associated contractors in securing contracts of the projects.The investigation of ICAC mainly targeted renovation projects of two residential estates in Hong Kong Island, whereby corruption was suspected. The value of the two renovation project contracts was worth about $140 million in total. It is alleged that the backbone members of the syndicate, through a middle man, might have offered advantages to the IO members in order to ensure that the associated project contractors controlled by the syndicate would be awarded the renovation contracts of the two residential estates respectively, thus contravening section 9 of the Prevention of Bribery Ordinance (POBO). The renovation projects concerned have yet to be executed.Meanwhile, the investigation conducted by the Competition Commission concerned renovation projects of 38 residential estates / buildings, and industrial buildings in Hong Kong Island, Kowloon and the New Territories. The value of the relevant renovation contracts totalled over $1 billion, with individual contracts worth as much as $260 million. Some of the renovation contracts concerned have yet to be awarded and some had been overturned, while works of individual projects had commenced prior to the commencement of the Competition Commission’s investigations.During the tendering of renovation projects for the 38 aforementioned buildings, the companies and individuals concerned had allegedly manipulated the tender results by exchanging and coordinating bidding prices, either directly or through intermediaries, while some contractors had submitted cover bids. Such conduct would amount to bid-rigging, price-fixing and exchange of competitively sensitive information, contravening the First Conduct Rule of the Competition Ordinance.As investigation is ongoing, no further comment on the case will be made by the ICAC and the Competition Commission at this stage.The series of joint operations conducted by the ICAC and the Competition Commission demonstrate the determination of the two agencies in safeguarding a clean and level-playing field for the building maintenance industry, and that no corruption and anti-competitive conduct will be tolerated. The two agencies will continue to maintain close collaboration with other law enforcement agencies and related authorities to crack down on illegal activities and to safeguard the rights of property owners.The ICAC calls on property owners and members of the public that, should they suspect corruption is involved in building maintenance, they should make enquiries or report to the ICAC without delay. The ICAC’s report corruption hotline: 25 266 366. The Competition Commission calls on anyone who can provide information on the matter or the relevant practices to contact the Competition Commission as soon as possible by telephone on 3462 2118 or by e-mail at complaints@compcomm.hk. Those who consider that they may have engaged or been involved in cartel conduct should approach the Commission as soon as possible for leniency or co-operation (Leniency Hotline: 3996 8010; e-mail: leniency@compcomm.hk).The ICAC has all along been taking stringent enforcement action against corruption in the building management sector. The ICAC also actively supports flat owners and building management bodies (BMBs) in enhancing their anti-corruption capability through corruption prevention and education. The ICAC will continue to proactively approach BMBs and adopt an early intervention strategy, as well as to encourage flat owners to stay vigilant against corruption in renovation works through active participation in building management. To address the corruption risks in building maintenance projects, the ICAC has compiled and distributed the “Corruption Prevention 101 – Building Maintenance Tips” leaflet to provide corruption prevention suggestions and relevant information for owners. Members of the public can download the leaflet from the ICAC Corruption Prevention Advisory Service webpage (cpas.icac.hk). In collaboration with different government departments, regulators, professional bodies and trade associations, the ICAC will continue to organise integrity training to enhance practitioners’ professional conduct and resistance to bribery temptations. The ICAC has also produced a wide range of practical education resources which are available in the Integrity and Quality Building Management website (bm.icac.hk). Citizens are also welcome to call the Integrity Building Management Enquiry Hotline at 2929 4555 for ICAC services.Apart from enforcement actions, the Competition Commission has been actively launching publicity and educational initiatives to raise public awareness of bid-rigging and other anti-competitive conduct, and to assist procurers in strengthening their preventive efforts. In addition to rolling out a series of educational resources on its website, the Commission also spares no effort in engaging with the community. Over the past year, the Competition Commission has attended 19 briefings on building maintenance and management, reaching out to property owners and property managers in various districts, as well as relevant government departments and public bodies, to promote the message of combatting bid-rigging. Separately, the Competition Commission has also published a set of model “Non-collusion Clauses” for procurers to incorporate into their invitation to bid documents and contracts, with a view to reducing their exposure to anti-competitive conduct during procurement exercises. In essence, the “Non-collusion Clauses” serve to warn bidders of the prohibition against, and consequences of, entering into anti-competitive arrangements, as well as to provide a clear and straightforward contractual remedy for procurers in the event that these clauses have been breached. Both Chinese and English versions of the model clauses are available for downloading at www.compcomm.hk. 26
Aug 2024Woman charged by ICAC gets 24 months’ jail for $530,000 fraud over SWD’s traffic accident assistance payments and insurance claimsA woman, her husband and a relative of them were earlier charged by the ICAC for defrauding the Social Welfare Department (SWD) of Traffic Accident Victim Assistance (TAVA) payments and insurance companies of related compensation by allegedly making false representations about their injuries in traffic accidents. The wife, who earlier admitted that she had defrauded the SWD and three insurers out of a total of about $530,000, was today (August 26) sentenced at the Eastern Magistrates’ Courts to 24 months’ imprisonment.Chong Siu-fong, 41, beauty consultant, earlier pleaded guilty to five charges in two separate cases – two of fraud, contrary to section 16A of the Theft Ordinance; and three of conspiracy to defraud, contrary to the Common Law.In sentencing, Deputy Magistrate Ms Cindy Li Shantong remarked that the offences involved in the case were serious in nature as the defendant had defrauded the government of public funds, warranting an immediate custodial sentence.The court heard that SWD’s TAVA Scheme provided immediate financial assistance to traffic accident victims where applicants were required to submit application forms and sick leave certificates to the SWD.At the material time, Chong was employed by a cosmetic company. She had taken out medical and accident insurance policies with several insurers, including AIA International Limited (AIA), FWD Life Insurance Company (Bermuda) Limited (FWD) and Prudential Hong Kong Limited (Prudential).Between July 2020 and September 2022, Chong submitted two TAVA applications to the SWD, claiming that she was injured in two traffic accidents. She also made insurance claims from the three insurers on one of the traffic accidents.The SWD subsequently granted two TAVA payments totalling about $300,000 to Chong, while the three insurers released three sums of medical compensation totalling over $230,000 to her.The ICAC investigation arose from a corruption complaint in relation to the insurance claims. Enquiries revealed that Chong not only submitted false sick leave certificates when she filed applications with the SWD and the three insurers, she also falsely claimed that she was a housewife with no earnings, and that she had not filed applications with other insurers in respect of the traffic accidents concerned.Chong’s husband Yeung Ping-wai, 42, part-time chef, was also charged by the ICAC for his role in the scam. He earlier pleaded not guilty to one count of fraud at the Eastern Magistrates’ Courts. His case was scheduled for September 3 for a pre-trial review.Co-defendant Chan Hok-yan, 44, unemployed and ex-spouse of Chong’s elder sister, was earlier charged with one count of fraud and six counts of conspiracy to defraud. He failed to attend court on March 8 this year and a warrant for his arrest was issued by the Eastern Magistrates’ Courts on the same day.The SWD and the insurers concerned, namely AIA, FWD and Prudential, had rendered full assistance to the ICAC during its investigation into the cases.The prosecution was today represented by ICAC officers Teresa Cheung and Romeo Chu. 07
May 2024Trading company duo charged by ICAC for offering over HK$1m bribes to vice president of bank over receipt of fundA director and a representative of a trading company were charged by the ICAC today (May 6) for allegedly offering bribes totalling HK$1.02 million to a vice president of a bank for assisting the company to receive an investment fund claimed to amount to $200 billion euros through its account held with the bank.Wammy Ngan Wang-lai and Jiang Jiaxin, respectively sole director cum shareholder and representative of Hong Kong Chinese Reserve International Company Limited (Chinese Reserve), both 55, jointly face two charges – one of conspiracy to offer an advantage to an agent and one of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance (POBO) and Section 159A of the Crimes Ordinance.The two defendants were released on ICAC bail, pending their appearance in the Eastern Magistrates’ Courts on Wednesday (May 8) for mention. The prosecution will apply for transferring the case to the District Court for plea.At the material time, Chinese Reserve held a bank account with DBS Bank (Hong Kong) Limited (DBS Bank), which required its customers to provide supporting documents in respect of large transactions for verification for due diligence purpose.It is alleged that between July and August 2023, the defendants conspired together to offer two bribe payments of HK$1 million and HK$20,000 respectively to a vice president of DBS Bank for assisting Chinese Reserve to re-activate its dormant bank account held with DBS Bank in order to receive an investment fund through the account.The vice president rejected the defendants’ offers and reported the matter to the bank. The ICAC subsequently received a corruption complaint and conducted an investigation. Enquiries revealed that Ngan claimed that Chinese Reserve had to receive an investment fund of $200 billion euros through its bank account held with DBS Bank and allegedly provided false documents to the bank.The ICAC reminds members of the public not to bribe bank staff in exchange for its services, otherwise it may constitute breaches of the POBO. Should anyone comes across any suspicion of corruption, he or she should report to the ICAC immediately. ICAC 24-hour Report Corruption Hotline: 25 266 366.The ICAC has been actively promoting corruption prevention services to banks and enhancing banking practitioners’ knowledge on the anti-corruption laws. The newly launched “Corruption Prevention Guide for Banks” assists banks in managing corruption risks in core operations, including accounts opening. An Ethics Promotion Programme for the Banking Industry was also launched to help bank staff to understand common corruption loopholes.DBS Bank has rendered full assistance to the ICAC during its investigation into the case. 09
Feb 2023Security supervisor jailed for soliciting bribes from subordinateA security supervisor, charged by the ICAC, was today (February 7) sentenced to five months’ imprisonment at the Shatin Magistrates’ Courts for soliciting bribes of over $10,000 from a subordinate security guard for assisting the latter to get promoted to assistant security supervisor.Luk Pui-suet, 54, supervisor of Hong Kong Guards Limited (HKGL), was earlier found guilty of two counts of agent soliciting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO).In sentencing, Magistrate Mr Pang Leung-ting reprimanded Luk for showing no remorse. The offences involved were serious in nature since Luk solicited advantages from a subordinate in her capacity as a direct supervisor so as to exert influence over the subordinate’s promotion. The magistrate took a starting point of six months’ imprisonment and reduced Luk’s jail term by one month after taking into account various mitigating factors.The court heard that at the material time, Luk was an assistant supervisor of HKGL posted to Shui Chuen O Estate, a public housing estate in Shatin. She was one of the three assistant supervisors of the estate responsible for assisting to manage about 40 security guards.In November 2020, one of the security guards Tang Kam-ngau asked Luk about his chance of promotion. Tang believed that Luk would succeed the then supervisor after the latter’s retirement in mid-December 2020, leading to an assistant supervisor vacant post.Afterwards, Luk told Tang on two occasions that she would assume the post of supervisor and solicited two bribes, one of $5,000 to $8,000 and another of at least $5,000, from Tang for assisting him to get promoted to assistant supervisor.Tang gave Luk a red packet containing $2,000 cash, but Luk did not accept the red packet as the amount did not meet $5,000.HKGL prohibited its staff members from soliciting and accepting advantages in relation to their official duties. HKGL had rendered full assistance to the ICAC during its investigation into the case.Tang Kam-ngau, the security guard concerned, was earlier charged by the ICAC with bribery in a separate case. He pleaded guilty to three counts of offering an advantage to an agent and sentencing was adjourned to this Friday (February 10).The prosecution was today represented by Senior Public Prosecutor Rosa Lo, assisted by ICAC officer Jeff Ng. 08
Aug 2022Two ex-insurance agents charged by ICAC sentenced for $700,000 commission and compensation fraudTwo former insurance agents, charged by the ICAC, were respectively sentenced to 18 months’ jail and 160 hours of community service at the District Court today (August 5) for deceiving an insurer into releasing commissions and compensation totalling about $700,000 by making false representations on the occupations and incomes of nine insurance policy applicants, and falsely representing that they were injured after the insurance policies were successfully taken out.Leung King-kei 36, former insurance agent of AIA International Limited (AIA), was sentenced to 18 months’ imprisonment. He earlier pleaded guilty to five counts of fraud, contrary to Section 16A of the Theft Ordinance; and four counts of conspiracy to defraud, contrary to Common Law.Co-defendant Yu Shing-yin, 36, former insurance agent of AIA, who earlier pleaded guilty to one count of conspiracy to defraud jointly charged with Leung, was today ordered to perform 160 hours of community service.Judge Mr Gary Lam Kar-yan reprimanded the defendants for their breach of trust. In sentencing Leung, the judge said he took a starting point of 30 months’ imprisonment and reduced the jail term to 18 months having considered Leung’s guilty plea and repayment to his former employer. A community service order was imposed on Yu in view of the relatively minor role he played in the scam.The court heard that AIA provided different insurance products to its clients. When processing an application for taking out an insurance policy, AIA would consider the client’s occupation, annual income and medical history, etc.The offences took place between July 2016 and July 2018. At the material time, Leung was an insurance agent of AIA. After being promoted to unit manager in December 2017, he was entitled to receive overriding commissions. Yu was Leung’s down-line insurance agent.The court heard that Leung had alone or conspired together with Yu, another down-line insurance agent and four policyholders to defraud AIA by making false representations on the occupations of the policyholders and monthly incomes of nine policyholders in nine insurance policy applications.AIA approved the nine insurance policy applications and paid commissions totalling about $95,000 to Leung and his down-line insurance agents.ICAC investigation revealed that false representations were made on the policyholders’ injuries in the relevant insurance claims, causing AIA to release insurance compensations totalling about $600,000 to the policyholders.The investigation arose from a corruption complaint filed with the ICAC. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charging Leung and Yu. Some of the above policyholders and down-line insurance agents were earlier charged by the ICAC in separate cases and pleaded guilty to their respective charges. Their cases are adjourned to mid-August for sentence.AIA had rendered full assistance to the ICAC during its investigation.The prosecution was today represented by Public Prosecutor Caddy Mo, assisted by ICAC officer Keaton Ma.The ICAC will continue to join hands with the industry to promote integrity and anti-corruption messages to insurers and insurance practitioners. In collaboration with the industry, the Commission had produced a guidebook which assisted insurers to strengthen their corruption prevention capabilities in key operational areas such as verification of commissions and claims.ICAC’s dedicated webpage tailor-made for the insurance industry“Corruption Prevention Guide for Insurance Companies”