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
02
Feb 2024Two more ex-site team leaders of Third Runway Project charged by ICAC jailed for bribery over workers’ employmentIn recent years, the ICAC has taken a series of enforcement actions against solicitation and acceptance of illegal rebates from construction workers and launched a series of relevant publicity and education programmes. Two more former site team leaders of a sub-contractor of the Third Runway Project of the Hong Kong International Airport (Third Runway Project) were today (February 2) each sentenced to five months’ imprisonment at the West Kowloon Magistrates’ Courts for accepting bribes from four bar-benders over their employment.Xu Ergao, 48; and Guo Tianbao, 43, both former site team leaders for bar-bending works of MLife Engineering Limited (MEL), earlier pleaded guilty to a total of four counts of conspiracy for agents to accept advantages, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance.In sentencing, Magistrate Mr Jason Wan Siu-ming remarked that the defendants had exploited fellow construction workers in an extended period of time, warranting custodial sentences. The magistrate also ordered the duo to repay a total of over $90,000, equivalent to the amount of bribes involved in the present case, to MEL as restitutions.The ICAC had so far charged 26 people in relation to bribery over the employment of workers of the Third Runway Project and most of the defendants were site team leaders of a sub-contractor of the project. Twenty-one defendants, including the duo in the present case, had pleaded guilty or were found guilty after trial, receiving sentences up to 16 months in jail. Three others are awaiting plea or trial.An ICAC spokesperson urges construction workers not to tolerate corruption. Should they be asked to pay bribes in exchange for their employment, they should report to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366.The court heard that MEL was a sub-contractor of the Third Runway Project responsible for recruiting construction workers to conduct various works. Xu and Guo were site team leaders leading the same team of bar-benders working at the project’s construction site.Between August 2020 and April 2021, Xu and Guo conspired together to accept bribes totalling over $90,000 from four bar-benders for continuing their employment with MEL. The bar-benders believed that if they did not pay bribes ranging from 3,900 to about $33,000, their employment would be terminated.The Airport Authority Hong Kong, the relevant main contractor SAPR JV and MEL had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Ruby Cheung. 26
Jan 2024Ex-chief operations officer of medical device firm charged as ICAC probe reveals $3.1m project payments fraudA then chief operations officer of a medical device firm was charged by the ICAC yesterday (January 25) with fraud after a corruption investigation revealed that he allegedly defrauded the medical device firm payments of over $3.1 million for a research and development (R&D) and production project by making false representation that an international corporation was the buyer of the project.Francis Fung Chung-hung, 73, former chief operations officer of Flussig Medtech Limited (Flussig), faces one count of fraud, contrary to Section 16A(1) of the Theft Ordinance. He was released on bail, pending his appearance at the Eastern Magistrates’ Courts next Tuesday (January 30) for mention, when the case will be transferred to the District Court for plea.In 2018, the defendant invited an investor to invest in the R&D and production project of a medical device. The investor subsequently set up Flussig to run the project and employed the defendant as its chief operations officer. Due to the slow progress of the project, the defendant recommended the investor to invest in another R&D and production project of a coffee machine to make profit to fund the medical device project.The investor agreed to invest in the coffee machine project through Flussig and accepted defendant’s recommendation to engage BM Technology Design Limited (BM Tech) and Wargames Factory Limited (Wargames Factory) for software development, manufacturing plastic parts and supplying prototype.It is alleged that between October 2019 and April 2020, the defendant, with intent to defraud, induced Flussig to settle payments totalling over $3.1 million with BM Tech and Wargames Factory by falsely representing to Flussig that an international beverage corporation would purchase the coffee machine project from Flussig.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the international beverage corporation had never entered into any business negotiation or agreement with Flussig.Flussig and the international beverage corporation concerned have rendered full assistance to the ICAC during its investigation into the case. 23
Jan 2024Ex-salesman of groceries supplier charged as ICAC probe reveals fraud of goods worth $12mThe ICAC today (January 23) charged a then senior sales executive of a groceries supplier with fraud after a corruption investigation revealed that he allegedly induced the supplier to release goods worth totalling over $12 million in nine months by making false representations about the orders placed by various clients.Mak Ka-wing, 45, former senior sales executive of Dah Chong Hong Limited (DCH), faces 32 counts of fraud, contrary to Section 16A of the Theft Ordinance. He was released on bail, pending his appearance at the Kwun Tong Magistrates’ Courts on Thursday (January 25) for mention, when the case will be transferred to the District Court for plea.At the material time, the defendant was a senior sales executive of DCH which engaged in the supply of groceries. He was responsible for handling groceries orders placed by clients. Upon receiving a request from a client, an invoice would be issued for arranging release or delivery of goods to the client.In the nine months between August 2020 and April 2021, the defendant, with intent to defraud, allegedly induced DCH to arrange release or delivery of goods with the total value of over $12 million by falsely representing to DCH that 32 clients had ordered goods from the company.The ICAC investigation arose from a corruption complaint. Enquiries revealed that during the abovementioned period, the defendant allegedly caused DCH to release the relevant goods by placing fictitious orders. It is alleged that the defendant subsequently sold the goods to other parties privately but only paid about $278,000 to DCH.DCH has rendered full assistance to the ICAC during its investigation into the case. 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”
Feb 2024Two more ex-site team leaders of Third Runway Project charged by ICAC jailed for bribery over workers’ employmentIn recent years, the ICAC has taken a series of enforcement actions against solicitation and acceptance of illegal rebates from construction workers and launched a series of relevant publicity and education programmes. Two more former site team leaders of a sub-contractor of the Third Runway Project of the Hong Kong International Airport (Third Runway Project) were today (February 2) each sentenced to five months’ imprisonment at the West Kowloon Magistrates’ Courts for accepting bribes from four bar-benders over their employment.Xu Ergao, 48; and Guo Tianbao, 43, both former site team leaders for bar-bending works of MLife Engineering Limited (MEL), earlier pleaded guilty to a total of four counts of conspiracy for agents to accept advantages, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance.In sentencing, Magistrate Mr Jason Wan Siu-ming remarked that the defendants had exploited fellow construction workers in an extended period of time, warranting custodial sentences. The magistrate also ordered the duo to repay a total of over $90,000, equivalent to the amount of bribes involved in the present case, to MEL as restitutions.The ICAC had so far charged 26 people in relation to bribery over the employment of workers of the Third Runway Project and most of the defendants were site team leaders of a sub-contractor of the project. Twenty-one defendants, including the duo in the present case, had pleaded guilty or were found guilty after trial, receiving sentences up to 16 months in jail. Three others are awaiting plea or trial.An ICAC spokesperson urges construction workers not to tolerate corruption. Should they be asked to pay bribes in exchange for their employment, they should report to the ICAC immediately. ICAC’s report corruption hotline: 25 266 366.The court heard that MEL was a sub-contractor of the Third Runway Project responsible for recruiting construction workers to conduct various works. Xu and Guo were site team leaders leading the same team of bar-benders working at the project’s construction site.Between August 2020 and April 2021, Xu and Guo conspired together to accept bribes totalling over $90,000 from four bar-benders for continuing their employment with MEL. The bar-benders believed that if they did not pay bribes ranging from 3,900 to about $33,000, their employment would be terminated.The Airport Authority Hong Kong, the relevant main contractor SAPR JV and MEL had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Ruby Cheung. 26
Jan 2024Ex-chief operations officer of medical device firm charged as ICAC probe reveals $3.1m project payments fraudA then chief operations officer of a medical device firm was charged by the ICAC yesterday (January 25) with fraud after a corruption investigation revealed that he allegedly defrauded the medical device firm payments of over $3.1 million for a research and development (R&D) and production project by making false representation that an international corporation was the buyer of the project.Francis Fung Chung-hung, 73, former chief operations officer of Flussig Medtech Limited (Flussig), faces one count of fraud, contrary to Section 16A(1) of the Theft Ordinance. He was released on bail, pending his appearance at the Eastern Magistrates’ Courts next Tuesday (January 30) for mention, when the case will be transferred to the District Court for plea.In 2018, the defendant invited an investor to invest in the R&D and production project of a medical device. The investor subsequently set up Flussig to run the project and employed the defendant as its chief operations officer. Due to the slow progress of the project, the defendant recommended the investor to invest in another R&D and production project of a coffee machine to make profit to fund the medical device project.The investor agreed to invest in the coffee machine project through Flussig and accepted defendant’s recommendation to engage BM Technology Design Limited (BM Tech) and Wargames Factory Limited (Wargames Factory) for software development, manufacturing plastic parts and supplying prototype.It is alleged that between October 2019 and April 2020, the defendant, with intent to defraud, induced Flussig to settle payments totalling over $3.1 million with BM Tech and Wargames Factory by falsely representing to Flussig that an international beverage corporation would purchase the coffee machine project from Flussig.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the international beverage corporation had never entered into any business negotiation or agreement with Flussig.Flussig and the international beverage corporation concerned have rendered full assistance to the ICAC during its investigation into the case. 23
Jan 2024Ex-salesman of groceries supplier charged as ICAC probe reveals fraud of goods worth $12mThe ICAC today (January 23) charged a then senior sales executive of a groceries supplier with fraud after a corruption investigation revealed that he allegedly induced the supplier to release goods worth totalling over $12 million in nine months by making false representations about the orders placed by various clients.Mak Ka-wing, 45, former senior sales executive of Dah Chong Hong Limited (DCH), faces 32 counts of fraud, contrary to Section 16A of the Theft Ordinance. He was released on bail, pending his appearance at the Kwun Tong Magistrates’ Courts on Thursday (January 25) for mention, when the case will be transferred to the District Court for plea.At the material time, the defendant was a senior sales executive of DCH which engaged in the supply of groceries. He was responsible for handling groceries orders placed by clients. Upon receiving a request from a client, an invoice would be issued for arranging release or delivery of goods to the client.In the nine months between August 2020 and April 2021, the defendant, with intent to defraud, allegedly induced DCH to arrange release or delivery of goods with the total value of over $12 million by falsely representing to DCH that 32 clients had ordered goods from the company.The ICAC investigation arose from a corruption complaint. Enquiries revealed that during the abovementioned period, the defendant allegedly caused DCH to release the relevant goods by placing fictitious orders. It is alleged that the defendant subsequently sold the goods to other parties privately but only paid about $278,000 to DCH.DCH has rendered full assistance to the ICAC during its investigation into the case. 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”