Recent ICAC Cases


12
Nov 2021
SME director charged by ICAC guilty of $19m banking facilities fraudA director of a Small and Medium Enterprise (SME), charged by the ICAC, was today (November 12) convicted at the District Court of using copies of false audited reports and bank statements of the company to support its applications for banking facilities totalling $19 million with two banks.Fong Kam-sang, 50, sole director and shareholder of now defunct Hong Kong Lotte International Trading Co. Limited (HKLIT), was found guilty of five counts of using copies of false instruments, contrary to Section 74 of the Crimes Ordinance.Judge Fred Sham Siu-man adjourned the case to November 25 for sentence. The defendant was remanded in the custody of the Correctional Services Department.The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the offences.The court heard that in August 2010, the defendant became the sole director and shareholder of HKLIT, purportedly a giftware trading company, upon the request of his twin brother and the de facto owner of HKLIT. The offence took place between November 2013 and June 2015, during which HKLIT applied for banking facilities from two banks.In order to support the applications, the defendant submitted to the two banks copies of audited reports and financial statements of HKLIT purportedly issued by an accounting firm for the two financial years of 2011/12 and 2012/13, and copies of false bank statements of the company. Believing the documents were genuine, the banks concerned respectively granted banking facilities of $13 million and $6 million to HKLIT.After the banking facilities were granted to HKLIT, the two banks would conduct annual reviews to assess whether the banking facilities would be extended or suspended, or that legal actions would be taken for chasing full settlement of the outstanding loans.At the annual reviews, the defendant submitted to the two banks copies of audited reports and financial statements of HKLIT purportedly issued by the above accounting firm for the financial year of 2013/14 and false bank statements of the company. As a result, extension of the two banking facilities were approved.Had the two banks known that the aforesaid supporting documents were false, they would not have granted and extended the banking facilities to HKLIT.ICAC enquiries revealed that the defendant had also used copies of false bank statements of HKLIT to apply with one of the aforesaid banks for a temporary increase of $3 million credit limit. The application was subsequently withdrawn.The two banks and the accounting firm concerned have rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Bernard Chung, assisted by ICAC officer Benjamin Ho.
05
Nov 2021
Two directors of consultant charged by ICAC over Bridge Project false concrete cube test recordsFollowing the conviction of 19 then laboratory staff of an engineering consultant of the Civil Engineering and Development Department (CEDD) for producing false records on concrete cube compression tests for the Hong Kong-Zhuhai-Macao Bridge (HZMB) Hong Kong Project, the ICAC today (November 5) further charged two then directors of the engineering consultant for defrauding the CEDD of a payment of about $2 million by concealing the falsified tests conducted by its staff.The ICAC investigation arose from a corruption complaint referred by the CEDD, which led to the successful prosecution of 19 then laboratory staff of Jacobs China Limited (JCL) earlier. Two then directors of JCL were charged by the Commission today upon further legal advice sought from the Department of Justice.Albert Leung Wing-keung, 64, then director of operations of JCL, and Leslie Harry Swann, 70, then divisional director of JCL, jointly face one count of fraud, contrary to Section 16A of the Theft Ordinance. They will appear before the West Kowloon Magistrates’ Courts this afternoon for mention, pending the case to be transferred to the District Court for plea.In 2012, the CEDD established the Public Works Regional Laboratory at Siu Ho Wan (the Laboratory) to meet the demand for construction materials compliance tests arising from the HZMB Hong Kong Project. The CEDD outsourced the management and operation of the Laboratory to JCL under a consultancy agreement.Pursuant to the agreement, JCL was fully responsible for the quality of the testing services at the Laboratory and was required to strictly follow the standard testing procedures accredited under the Hong Kong Laboratory Accreditation Scheme. JCL was required to report to the CEDD any errors in the performance of services which came to its knowledge. The CEDD would withhold making payments to JCL should the latter fail to comply with the terms stipulated in the agreement.At the material time, Leung was responsible for overseeing JCL’s projects in Hong Kong, including the above consultancy agreement. Swann reported to Leung and was responsible for the management and operation of the Laboratory.The charge alleges that between July 28, 2016 and May 10, 2017, Leung and Swann deliberately concealed that staff of JCL had used tested or high strength concrete cubes or a metal calibration cylinder to substitute the original concrete sample cubes delivered to the Laboratory for construction material compliance testing, and with intent to defraud, induced the CEDD to release a payment of around $2 million to JCL, which resulted in benefit to JCL and prejudice to the CEDD.During the ICAC’s investigation into the case, the CEDD, the Highways Department and the Transport and Housing Bureau have rendered full assistance to the Commission.
04
Nov 2021
Estate agents charged by ICAC with using false property transaction documents to deceive agencyTwo estate agents were yesterday (November 3) charged by the ICAC with using transaction documents of 11 bogus property transactions, which involve agency commissions totalling over $7.2 million, to deceive their property agency.The ICAC investigation arose from a corruption complaint. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised pressing a total of 11 charges against two former estate agents of Hong Kong Property Services (Agency) Limited (HKP), Lam Yee-hang, 45, and Li Wing-tung Selina, 58.The duo jointly face two counts of conspiracy as agent to use document with intent to deceive principal, contrary to Section 9(3) of the Prevention of Bribery Ordinance (POBO) and Section 159A of the Crimes Ordinance. Lam alone further faces nine counts of agent using document with intent to deceive his principal, contrary to Section (3) of the POBO.The defendants were released on ICAC bail, pending their appearance in the Kowloon City Magistrates’ Courts tomorrow (November 5) for plea.At the material time, Lam was the branch manager of a branch of HKP in Ho Man Tin while Li was an estate agent working in another branch of HKP in Kowloon City. Both branches were under the supervision of a senior district director.HKP maintained two lists respectively naming estate agents with no turnover for three consecutive months and nine consecutive months. HKP might give warnings to estate agents on the lists and suggest them to resign. Two down-line estate agents of Lam and Li were on the lists (the lists) when the alleged offences took place between November 2017 and August 2019.Nine of the charges allege that Lam, with intent to deceive HKP, used nine sets of property transaction documents in relation to four properties of a private housing estate in Ho Man Tin and five properties in an industrial building in Cheung Sha Wan, which contained false, erroneous or defective statements that seven down-line estate agents of Lam were the handling agents of the nine property transactions, to mislead HKP.The remaining two charges allege that Lam and Li conspired together with the aforesaid senior district director, with intent to deceive HKP, to use two sets of property transaction documents in relation to another two properties in the above industrial building, which contained false, erroneous or defective statements that Li and two down-line estate agents of Lam were the handling agents of two property transactions, to mislead HKP.ICAC enquiries revealed that the 11 property transactions, which would involve agency commissions totalling over $7.2 million, were fabricated. It is alleged that the defendants had used the relevant transaction documents to assist two down-line estate agents of Lam and Li to be removed from the lists.HKP has rendered full assistance to the ICAC during its investigation into the case.
03
Nov 2021
Ex-insurance agents charged by ICAC with $700,000 commission and compensation fraudThe ICAC yesterday (November 2) charged two former insurance agents with defrauding an insurance company of commissions and insurance compensations totalling about $700,000 by making false representations in nine policy applications and their relevant insurance compensation claims.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 two former insurance agents of AIA International Limited (AIA), Leung King-kei and Yu Shing-yin, both 35.Leung alone faces a total of nine charges – five of fraud, contrary to Section 16A of the Theft Ordinance; and four of conspiracy to defraud, contrary to Common Law. Yu jointly faces one count of conspiracy to defraud with Leung.The defendants were released on ICAC bail, pending their court appearance in the Eastern Magistrates’ Courts tomorrow (November 4) for the case to be transferred to the District Court for plea.AIA provides 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 alleged offences took place between July 2016 and July 2018. At the material time, Leung was an insurance agent of AIA. He was entitled to receiving overriding commissions after being promoted to unit manager in December 2017. Yu was Leung’s down-line insurance agent.The four conspiracy charges allege that Leung separately conspired together with Yu, another down-line insurance agent and four policyholders to defraud AIA by falsely representing the occupations of the policyholders in four insurance policy applications, exaggerating their monthly salaries, and inducing AIA to approve the four insurance policy applications and to pay commissions to Leung and his down-line insurance agents.The charges also allege that false representations were made on the policyholders’ injuries in the relevant insurance claims to induce AIA to pay insurance compensations to the policyholders.The remaining five charges allege that Leung falsely represented to AIA the occupations and/or monthly incomes of five other policyholders, and with intent to defraud, induced AIA to approve the five insurance policy applications, to pay commissions to Leung and his down-line insurance agent, and to pay insurance compensations to the policyholders, which resulted in benefit to the policyholders, Leung and his down-line insurance agent or in prejudice to AIA.ICAC enquiries revealed that commissions totalling about $95,000 and insurance compensations totalling about $600,000 were allegedly involved in the above scam.Arising from the same investigation, the ICAC had earlier charged some of the above policyholders and down-line insurance agents in separate cases.AIA has rendered full assistance to the ICAC during its investigation.
28
Oct 2021
Hotel manager charged by ICAC admits bribery over engineering and maintenance worksAn executive assistant manager of a hotel, charged by the ICAC, today (October 28) admitted at the Eastern Magistrates’ Courts that he had conspired with others to accept a bribe of $15,000 from a works contractor for allowing staff members of the hotel to assist in engineering and maintenance works which should have been done by the contractor.Wong Sai-kwong, 69, executive assistant manager of The Fleming, pleaded guilty to one count of conspiracy for an agent to accept advantages, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance and Section 159A of the Crimes Ordinance.Magistrate Mr Daniel Tang Siu-hung adjourned the case to November 22 this year for mitigation and sentence, pending probation and community service order reports of the defendant and granted him cash bail.The court heard that at the material time, the defendant was the executive assistant manager of The Fleming, a hotel in Wan Chai. He was the direct supervisor of an engineer of The Fleming who was responsible for supervising all engineering and maintenance works of the hotel.In around February 2019, the defendant met with the engineer and a director-cum-shareholder of a works contractor of the hotel. During the meeting, the defendant accepted $15,000 from the director-cum-shareholder of the works contractor as a reward for arranging or allowing staff members of The Fleming to assist in the works which should have been completed by the works contractor.The ICAC investigation arose from a corruption complaint. The Fleming had rendered full assistance to the ICAC during its investigation into the case.Arising from the same investigation, Wong Tin-lung, 44, the aforesaid engineer was also charged by the ICAC for allegedly accepting illegal rebates totalling over $470,000 in a separate case. His case was adjourned to February 7 next year for plea at the District Court.The prosecution was today represented by ICAC officer Rita Li.

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