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
28
Feb 2024Trio charged by ICAC admit roles in $37.5m critical illness insurance compensation fraud at High CourtAn insurance agent and two others, who were charged by the ICAC after a corruption investigation revealed their roles in a $37.5 million critical illness insurance compensation scam in which cancer patients were posed as policyholders to undergo medical examinations at clinical institutions to obtain medical certificates, today (February 28) pleaded guilty to conspiracy to defraud at the High Court.Wong Ka-keung, 45, former insurance agent of AIA International Limited (AIA); Lo Chun-kit, 45, driver; and Leung Wai-kin, 42, renovation worker, pleaded guilty to two counts of conspiracy to defraud, contrary to Common Law. Wong further admitted four similar offences and three counts of forgery, contrary to Section 71 of the Crimes Ordinance.Madam Justice Anna Lai Yuen-kee adjourned the case to Friday (March 1) for sentence. Wong and Leung were remanded in the custody of the Correctional Services Department while Lo was granted bail.The court heard that since mid-December 2017, Wong and Lo had been discussing how to make false insurance claims for Lo. They agreed that Lo would take out a high coverage critical illness policy while the premium would be paid by Wong. Lo subsequently took out two insurance policies from AIA through Wong.Wong and Lo then recruited Leung, who was a lymphoma patient, through middlemen to pose as Lo to attend medical examinations at various clinical institutions. After obtaining the required medical certificates confirming that Lo was diagnosed with cancer, critical illness and medical expenses claims were made to AIA, resulting in payments totalling over $9.8 million.Upon receiving the compensations, Lo passed about $7 million to Wong. Apart from enjoying 37 sessions of free medical examinations or treatments, Leung received $32,000 from Wong.ICAC investigation also revealed that Wong deployed similar fraudulent means to arrange other patients diagnosed with throat, breast, stomach and ovarian cancer to pose as him and two other policyholders to undergo examinations at various clinical institutions, so as to facilitate Wong and the two policyholders to file critical illness and medical expenses claims with AIA in relation to eight insurance policies handled by Wong for compensations totalling about $24.7 million.Wong also made three false certificates of sickness with the intention that one of the cancer patients could use them to apply for a two-year sick leave with her employer.AIA had rendered full assistance to the ICAC during its investigation.The prosecution was today represented by Senior Public Prosecutor Audrey Parwani, assisted by ICAC officers Jeff Chow and Romeo Chu.The ICAC had earlier charged one of the policyholders Liao Xiaoyi and her younger sister Liao Xiaoling in separate cases. Liao Xiaoling was sentenced to four months’ imprisonment at the Eastern Magistrates’ Courts last October after pleading guilty to two counts of incitement to commit forgery. Liao Xiaoyi, who faced two counts of conspiracy to defraud, will appear at the District Court for mention next Monday (March 4).The ICAC reminds insurance intermediaries to uphold integrity while members of public and policyholders should not take part in any insurance-related corrupt and illegal activities. The ICAC collaborated with the insurance industry to compile the “Corruption Prevention Guide for Insurance Companies” which assisted insurance companies in building and strengthening their corruption prevention capabilities in key operational areas such as claims verification. The ICAC will continue to collaborate with the industry in providing integrity training to insurance intermediaries. Information is available at the “Ethics Promotion Website for the Insurance Industry” produced by the Hong Kong Business Ethics Development Centre. 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 2024Trio charged by ICAC admit roles in $37.5m critical illness insurance compensation fraud at High CourtAn insurance agent and two others, who were charged by the ICAC after a corruption investigation revealed their roles in a $37.5 million critical illness insurance compensation scam in which cancer patients were posed as policyholders to undergo medical examinations at clinical institutions to obtain medical certificates, today (February 28) pleaded guilty to conspiracy to defraud at the High Court.Wong Ka-keung, 45, former insurance agent of AIA International Limited (AIA); Lo Chun-kit, 45, driver; and Leung Wai-kin, 42, renovation worker, pleaded guilty to two counts of conspiracy to defraud, contrary to Common Law. Wong further admitted four similar offences and three counts of forgery, contrary to Section 71 of the Crimes Ordinance.Madam Justice Anna Lai Yuen-kee adjourned the case to Friday (March 1) for sentence. Wong and Leung were remanded in the custody of the Correctional Services Department while Lo was granted bail.The court heard that since mid-December 2017, Wong and Lo had been discussing how to make false insurance claims for Lo. They agreed that Lo would take out a high coverage critical illness policy while the premium would be paid by Wong. Lo subsequently took out two insurance policies from AIA through Wong.Wong and Lo then recruited Leung, who was a lymphoma patient, through middlemen to pose as Lo to attend medical examinations at various clinical institutions. After obtaining the required medical certificates confirming that Lo was diagnosed with cancer, critical illness and medical expenses claims were made to AIA, resulting in payments totalling over $9.8 million.Upon receiving the compensations, Lo passed about $7 million to Wong. Apart from enjoying 37 sessions of free medical examinations or treatments, Leung received $32,000 from Wong.ICAC investigation also revealed that Wong deployed similar fraudulent means to arrange other patients diagnosed with throat, breast, stomach and ovarian cancer to pose as him and two other policyholders to undergo examinations at various clinical institutions, so as to facilitate Wong and the two policyholders to file critical illness and medical expenses claims with AIA in relation to eight insurance policies handled by Wong for compensations totalling about $24.7 million.Wong also made three false certificates of sickness with the intention that one of the cancer patients could use them to apply for a two-year sick leave with her employer.AIA had rendered full assistance to the ICAC during its investigation.The prosecution was today represented by Senior Public Prosecutor Audrey Parwani, assisted by ICAC officers Jeff Chow and Romeo Chu.The ICAC had earlier charged one of the policyholders Liao Xiaoyi and her younger sister Liao Xiaoling in separate cases. Liao Xiaoling was sentenced to four months’ imprisonment at the Eastern Magistrates’ Courts last October after pleading guilty to two counts of incitement to commit forgery. Liao Xiaoyi, who faced two counts of conspiracy to defraud, will appear at the District Court for mention next Monday (March 4).The ICAC reminds insurance intermediaries to uphold integrity while members of public and policyholders should not take part in any insurance-related corrupt and illegal activities. The ICAC collaborated with the insurance industry to compile the “Corruption Prevention Guide for Insurance Companies” which assisted insurance companies in building and strengthening their corruption prevention capabilities in key operational areas such as claims verification. The ICAC will continue to collaborate with the industry in providing integrity training to insurance intermediaries. Information is available at the “Ethics Promotion Website for the Insurance Industry” produced by the Hong Kong Business Ethics Development Centre. 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”