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Oct 2024Ex-listed company independent non-executive director and 11 others charged by ICAC with alleged 66 million share options fraudThe ICAC this morning (October 25) charged a former independent non-executive director of a delisted company and 11 others for allegedly conspiring to deceive the company into granting share options. The 12 defendants will appear at the Eastern Magistrates’ Courts this afternoon for mention.Tsang Chung-yu, 56, former independent non-executive director of Zioncom Holdings Limited (Zioncom); and 11 others associated with the scam, namely Chan Wai-lung, 43; Joyce Chan Oi-yan, 32; Chan Wai-sze, 48; Kenneth Chan Sze-chai, 54; Chow Ching-ho, 24; Chung Shing-yip, 37; Giles Lee Hung-kai, 61; Leung Lok, 23; Pui Li-ming, 40; Brian Wong King-lok, 32; and Eric Yeung (formerly Eric Yeung Ching-lap), 45, jointly face one count of conspiracy to defraud, contrary to the Common Law; and an alternative charge of conspiracy to deal with property known or believed to represent proceeds of an indictable offence, contrary to section 25(1) of the Organized and Serious Crimes Ordinance and section 159A of the Crimes Ordinance.In January 2018, Zioncom, principally engaged in manufacturing and sale of networking communication products, was listed on the Growth Enterprise Market Board of the Hong Kong Exchanges and Clearing Limited (HKEX). On October 21, 2022, Zioncom was renamed as Metaverse Yunji Technology Group Company Limited, and was eventually delisted from the HKEX on December 4, 2023.Since 2017, Zioncom adopted a share option scheme by granting share options of the company as a reward to its employees and other qualified individuals who had contributed to the company, so as to encourage them to contribute to the benefits of the company and its shareholders as a whole and to work towards enhancing the value of the company and its shares.The alleged offences took place between April and September 2022. At the material time, Tsang was an independent non-executive director of Zioncom. It is alleged that the 12 defendants had conspired together to falsely represent that Joyce Chan, Chan Wai-sze, Kenneth Chan, Chow, Chung, Lee, Leung, Pui, Wong and Yeung were employees of the company or its subsidiaries, with an intent to induce Zioncom to grant the aforesaid 10 defendants 66 million share options of the company.The alternative charge alleges that the defendants had conspired together to arrange the aforesaid 10 defendants who were granted share options of Zioncom to deal with the crime proceeds in relation to 66 million shares of Zioncom subscribed by the aforesaid share options, involving a total amount of over $4.35 million.The ICAC investigation commenced upon receipt of a corruption complaint, followed by an operation jointly mounted with the Securities and Futures Commission (SFC) in January this year.The SFC and the HKEX offered full assistance to the ICAC during its investigation. 23
Oct 2024ICAC operations ‘Rocket Gun’ and ‘Beacon Tower’: 148 netted for alleged bribery and forgery over professional qualifications for construction and electrical worksIn two law enforcement operations codenamed “Rocket Gun” and “Beacon Tower” mounted this month, the ICAC arrested a total of 148 persons for fraudulently obtaining two types of works-related professional qualifications by allegedly falsifying employment proofs and using corrupt means. It is alleged that the arrestees respectively deceived recognised training course providers (TCPs) of the Labour Department (LD) into issuing professional certificates in relation to excavation works, and deceived the Electrical and Mechanical Services Department (EMSD) into issuing certificates of registration of electrical workers.===== Operation ‘Rocket Gun’: Alleged bribery and forgery over certifications of professional qualifications for operating excavators =====In operation “Rocket Gun”, 111 individuals – 91 male and 20 female aged between 22 and 69, were arrested. The arrestees included the mastermind of the scam, owners or employees of five engineering companies, staff members of two TCPs of the LD, and 100 construction workers.In the operation, search warrants were executed by ICAC officers to conduct searches at various premises, including residences and offices of the individuals concerned. Suspected falsified employment proof documents and other exhibits were also seized.Under the Factories and Industrial Undertakings (Loadshifting Machinery) Regulation and its subsidiary regulations, only holders of a valid certificate of excavator operations, or other persons under the supervision of the aforesaid certificate holders, are eligible to operate excavators. Otherwise, it may constitute an offence and the relevant contractor or the responsible person would be liable on conviction to a maximum fine of $100,000.The professional certificates are either issued by the Hong Kong Institute of Construction (HKIC) (formerly Construction Industry Training Authority) or the LD’s recognised TCPs. A construction worker can obtain a certificate by either of the following means: (1) Any person who has no experience in operating an excavator is required to attend the HKIC’s 50-day training course and pass the examinations; (2) Any person who has experience of three years or above in operating an excavator (including the experience gained overseas) may attend the two-day training course organised by the LD’s recognised TCPs and pass the examinations thereafter.The ICAC investigation arose from a corruption complaint in relation to certifications of professional qualifications for excavator operators. The complaint alleged that an excavator operator and staff members of two of the LD’s recognised TCPs might have assisted persons without experience in operating excavators to illegally obtain professional certificates. Corruption and forgery might have been involved in the process, contravening the Prevention of Bribery Ordinance and other relevant legislations.ICAC investigation revealed that at the material time, the mastermind, who was also an excavator operator, operated a machinery training field not recognised by the LD and recruited a large number of construction workers without the required experience in excavator operations to join unaccredited paid short-term courses. The mastermind also allegedly conspired with owners or employees of five engineering companies to assist those workers to provide false employment proof documents for applying for the two-day course organised by the LD’s recognised TCPs and obtaining professional certificates after passing the examinations.The investigation revealed that over 100 construction workers had allegedly used suspectedly false employment proof documents in their applications for professional certificates.All arrestees have been released on ICAC bail. The ICAC inquiries are ongoing and the Commission will continue to investigate if corruption or other illegalities were involved in the processing of applications and issuing of professional certificates by the two TCPs.===== Operation ‘Beacon Tower’: Alleged bribery and forgery over certifications of electrical workers’ professional qualifications =====In another operation “Beacon Tower”, the ICAC arrested 37 men aged between 30 and 70. They included a mastermind, the proprietors of four engineering companies and 32 electrical workers.ICAC officers also executed search warrants to search residences and offices of the individuals concerned. Suspected falsified employment proof documents and other exhibits were seized for further analysis and investigation.According to the Electricity (Registration) Regulations, all electrical workers performing relevant fixed electrical installation work are required to register with the EMSD for a recognised qualification. Certificates of registration are categorised in five grades, of which Grade A is classified as elementary level (commonly known as Grade A Electrical Work Certificate). Grade A applicants should either be holders of certificates of relevant training courses, or have obtained passing results in the recognised examinations or trade tests and possess at least five years’ working experience in electrical work. Applicants are required to submit to the EMSD documents signed or approved by a registered electrical worker or a register electrical contractor to support his/her working experience. Any ineligible persons conducting fixed electrical installation work would commit an offence and be liable on conviction to a maximum of six months’ imprisonment and a fine of $50,000.The ICAC investigation arose from a corruption complaint alleging that some individuals might have applied for Grade A Electrical Work Certificates by corrupt means. Investigation revealed that a proprietor of an electrical engineering firm was believed to be the mastermind. He had allegedly organised a paid training course for potential Grade A applicants and conspired with proprietors of four engineering companies to assist those applicants who did not possess adequate relevant work experience to falsify employment proof documents, claiming that they had five years working experience in electrical work, to support their applications to EMSD for the registration of Grade A Electrical Work Certificates.All arrestees have been released on ICAC bail. The ICAC inquiries are ongoing and the Commission will continue to investigate if corruption or other illegalities were involved in the issuing of Grade A Electrical Work Certificates.===== Follow-up actions =====While the ICAC will not make further comments on the two cases, the Commission does not rule out further law enforcement actions or arrests.The LD and the EMSD have rendered full assistance to the ICAC during its investigations. The ICAC has maintained close contact with the two departments in connection with reviewing of relevant procedures, enhancing supervision as well as corruption prevention and education to curb any illegalities and irregularities.Following the operations, the LD and the EMSD have looked into the matter and immediately examined all professional certificates or registration applications in question. The two departments have also initiated procedures to revoke the professional qualifications of those involved in the two cases.The ICAC urges members of the public and relevant industry professionals that should they find any work-related corrupt practices, they should report to the ICAC immediately through its 24-hour hotline (25 266 366). 21
Oct 2024Man charged by ICAC for allegedly offering $1,000 bribe to bank staff for opening accountThe ICAC today (October 21) charged a man with allegedly offering $1,000 to bribe a bank staff member for opening a business bank account for his company.Lyu Ganzhen, 36, businessman, faces one count of offering an advantage to an agent, contrary to section 9(2)(a) of the Prevention of Bribery Ordinance. He will appear at the Fanling Magistrates’ Courts tomorrow (October 22) for plea.The investigation arose from a corruption complaint. Inquiries revealed that on August 27, 2024, the defendant visited a branch of the Hongkong and Shanghai Banking Corporation Limited (HSBC) in Fanling, requesting to open a business account for his company. He was received by a branch staff member.Understanding that the defendant intended to open a personal bank account for business purpose, the bank staff explained to the defendant that he was required to apply at HSBC Business Centre for opening a company bank account. The defendant was alleged to have handed a passport containing a bank note of HK$1,000 to the bank staff, who immediately rejected the offer.Subsequently, the defendant was alleged to have handed the passport with the HK$1,000 bank note to the bank staff twice again, stating that he did not come to Hong Kong very often and requested the bank staff to offer assistance in opening a company account. The bank staff rejected the defendant’s offer and reported the incident to his supervisor immediately. The defendant was arrested by ICAC officers on the same day upon his departure from Hong Kong.HSBC had rendered full assistance to the ICAC during its investigation into the case. 18
Oct 2024Duo charged by ICAC with bribery over employment of subcontracted formworks workers at Community Isolation Facility construction siteThe ICAC yesterday (October 17) charged a former team leader and a former construction worker of a works subcontractor with soliciting and accepting bribes totalling about $98,000 from four newly-recruited formworks workers over the latter’s employment at a Community Isolation Facility construction site on Lantau Island during the pandemic.Lui Yu-shan, 52, former team leader of Ching Hung Engineering Company Limited (Ching Hung); and Chen Qiang, 45, former construction worker of Ching Hung, jointly face three counts of agents soliciting an advantage, while Lui further faces one count of agent accepting advantages, all contrary to section 9(1)(a) of the Prevention of Bribery Ordinance.The defendants were released on ICAC bail, pending their appearance at the West Kowloon Magistrates’ Courts next Monday (October 21) for plea.The alleged offences took place between March and June 2022. At the material time, Ching Hung was a formworks subcontractor of the construction of a Community Isolation Facility at Penny’s Bay on Lantau Island, responsible for providing construction workers. At that time, Lui was a team leader of Ching Hung who was tasked to refer workers to the company and to supervise them, including Chen, at the construction site. The company prohibited its employees from soliciting or accepting advantages from others in relation to Ching Hung’s business and affairs.In March 2022, upon Chen’s referral, four formworks workers started working at the construction site at a daily wage of $2,000 each and under the supervision of Lui. On various occasions, the two defendants allegedly solicited bribes of $500 per working day from the four workers for assisting them to be employed.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Lui and Chen had requested three of the formworks workers to pay the bribes to Lui. In fear of being terminated, the three workers made the bribe payments totalling about $66,000 to Lui whenever they had received wages from Ching Hung. In addition, Lui had also allegedly accepted bribes of $32,000 from another worker.Ching Hung rendered full assistance to the ICAC during its investigation into the case.An ICAC spokesperson stresses that soliciting or accepting bribes for assisting others in employment is a serious bribery offence. The maximum penalty on conviction of the offence is a seven-year imprisonment and a fine of $500,000. The ICAC also urges construction workers not to tolerate corruption. Should they be asked to pay bribes in exchange for their employment, they should reject and report to the ICAC immediately through the 24-hour hotline (25 266 366). 17
Oct 2024Trio charged by ICAC with bribery and fraud over referral of bank clients’ mortgage loan applicationsThe ICAC had charged two former employees of two banks and a mortgage loan referral agent in the past two days (October 15 and 16) for alleged bribery and fraud in relation to referral of loan applications of clients without the banks’ permission and swindling referral fees by making false representations to the banks. The bribe money and agent referral fees involved totally over $34,000.Amy Chow Bik-sum, 48, former assistant customer service manager of OCBC Bank (Hong Kong) Limited (formerly known as OCBC Wing Hang Bank Limited) (OCBC); Yip Man-yee, 46, sole proprietor of The Capital Property (TCP); and Mak Miu-ling, 55, former deputy manager of Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia)), jointly face one count of fraud, contrary to section 16A of the Theft Ordinance. Chow and Yip further face one count of conspiracy for an agent to accept an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance.The trio were released on ICAC bail, pending their appearance at the Kowloon City Magistrates’ Courts tomorrow (October 18) for plea.OCBC and ICBC (Asia) would release agency referral fees to the banks’ appointed mortgage intermediaries for successful residential mortgage applications, but the banks would not release commissions or agency referral fees to their staff who handled such applications.Cybernetics Property Mortgage Limited (CPM) was an appointed mortgage intermediary of ICBC (Asia). CPM would release 95% of the agency referral fee received from ICBC (Asia) as a broker fee to their agents for each successful mortgage application procured.At the material time, Chow was an assistant customer service manager of OCBC posted to its Tsim Sha Tsui branch, while Mak was a deputy manager of ICBC (Asia) posted to its Ho Man Tin branch. Among their duties, both Chow and Mak were responsible for handling residential mortgage applications. Yip was the sole proprietor of TCP, a lending referral agency, which was CPM’s agent in mortgage referral business and was entitled to receive a broker fee from CPM for each successful mortgage application referred to a bank.Between August 2019 and March 2021, Chow allegedly referred two OCBC clients to Mak and Yip respectively for arranging the clients to apply to ICBC (Asia) for mortgage loans.It is alleged that between September 2019 and March 2020, the trio falsely represented to ICBC (Asia) that the mortgage loan application of the aforesaid first client was referred by CPM, and deceived ICBC (Asia) into paying a mortgage loan referral fee of $18,000 to CPM.It is also alleged that between January and August 2021, Chow accepted a bribe of over $16,000 from Yip for referring the aforesaid second client’s mortgage loan application to TCP.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Chow, without obtaining a permission from OCBC, had allegedly referred the two clients to Mak and Yip respectively for arranging the clients to file mortgage loan applications with ICBC (Asia). Due to the aforesaid scam, TCP received two broker fees of about $17,000 and about $32,000 respectively from CPM. The ICAC probe also revealed that the aforesaid first client had never entrusted CPM and TCP to file his mortgage loan application with ICBC (Asia). Since both ICBC (Asia) and CPM had no knowledge of the relevant actual situation, they had eventually released the agent referral fee and broker fee to CPM and TCP separately.OCBC did not allow its employees to refer mortgage loan applications of the bank’s clients to other individuals or institutions, and the bank also prohibited its employees from soliciting or accepting advantages from others in relation to OCBC’s business.OCBC, ICAC (Asia) and CPM have rendered full assistance to the ICAC during its investigation into the case.
Oct 2024Ex-listed company independent non-executive director and 11 others charged by ICAC with alleged 66 million share options fraudThe ICAC this morning (October 25) charged a former independent non-executive director of a delisted company and 11 others for allegedly conspiring to deceive the company into granting share options. The 12 defendants will appear at the Eastern Magistrates’ Courts this afternoon for mention.Tsang Chung-yu, 56, former independent non-executive director of Zioncom Holdings Limited (Zioncom); and 11 others associated with the scam, namely Chan Wai-lung, 43; Joyce Chan Oi-yan, 32; Chan Wai-sze, 48; Kenneth Chan Sze-chai, 54; Chow Ching-ho, 24; Chung Shing-yip, 37; Giles Lee Hung-kai, 61; Leung Lok, 23; Pui Li-ming, 40; Brian Wong King-lok, 32; and Eric Yeung (formerly Eric Yeung Ching-lap), 45, jointly face one count of conspiracy to defraud, contrary to the Common Law; and an alternative charge of conspiracy to deal with property known or believed to represent proceeds of an indictable offence, contrary to section 25(1) of the Organized and Serious Crimes Ordinance and section 159A of the Crimes Ordinance.In January 2018, Zioncom, principally engaged in manufacturing and sale of networking communication products, was listed on the Growth Enterprise Market Board of the Hong Kong Exchanges and Clearing Limited (HKEX). On October 21, 2022, Zioncom was renamed as Metaverse Yunji Technology Group Company Limited, and was eventually delisted from the HKEX on December 4, 2023.Since 2017, Zioncom adopted a share option scheme by granting share options of the company as a reward to its employees and other qualified individuals who had contributed to the company, so as to encourage them to contribute to the benefits of the company and its shareholders as a whole and to work towards enhancing the value of the company and its shares.The alleged offences took place between April and September 2022. At the material time, Tsang was an independent non-executive director of Zioncom. It is alleged that the 12 defendants had conspired together to falsely represent that Joyce Chan, Chan Wai-sze, Kenneth Chan, Chow, Chung, Lee, Leung, Pui, Wong and Yeung were employees of the company or its subsidiaries, with an intent to induce Zioncom to grant the aforesaid 10 defendants 66 million share options of the company.The alternative charge alleges that the defendants had conspired together to arrange the aforesaid 10 defendants who were granted share options of Zioncom to deal with the crime proceeds in relation to 66 million shares of Zioncom subscribed by the aforesaid share options, involving a total amount of over $4.35 million.The ICAC investigation commenced upon receipt of a corruption complaint, followed by an operation jointly mounted with the Securities and Futures Commission (SFC) in January this year.The SFC and the HKEX offered full assistance to the ICAC during its investigation. 23
Oct 2024ICAC operations ‘Rocket Gun’ and ‘Beacon Tower’: 148 netted for alleged bribery and forgery over professional qualifications for construction and electrical worksIn two law enforcement operations codenamed “Rocket Gun” and “Beacon Tower” mounted this month, the ICAC arrested a total of 148 persons for fraudulently obtaining two types of works-related professional qualifications by allegedly falsifying employment proofs and using corrupt means. It is alleged that the arrestees respectively deceived recognised training course providers (TCPs) of the Labour Department (LD) into issuing professional certificates in relation to excavation works, and deceived the Electrical and Mechanical Services Department (EMSD) into issuing certificates of registration of electrical workers.===== Operation ‘Rocket Gun’: Alleged bribery and forgery over certifications of professional qualifications for operating excavators =====In operation “Rocket Gun”, 111 individuals – 91 male and 20 female aged between 22 and 69, were arrested. The arrestees included the mastermind of the scam, owners or employees of five engineering companies, staff members of two TCPs of the LD, and 100 construction workers.In the operation, search warrants were executed by ICAC officers to conduct searches at various premises, including residences and offices of the individuals concerned. Suspected falsified employment proof documents and other exhibits were also seized.Under the Factories and Industrial Undertakings (Loadshifting Machinery) Regulation and its subsidiary regulations, only holders of a valid certificate of excavator operations, or other persons under the supervision of the aforesaid certificate holders, are eligible to operate excavators. Otherwise, it may constitute an offence and the relevant contractor or the responsible person would be liable on conviction to a maximum fine of $100,000.The professional certificates are either issued by the Hong Kong Institute of Construction (HKIC) (formerly Construction Industry Training Authority) or the LD’s recognised TCPs. A construction worker can obtain a certificate by either of the following means: (1) Any person who has no experience in operating an excavator is required to attend the HKIC’s 50-day training course and pass the examinations; (2) Any person who has experience of three years or above in operating an excavator (including the experience gained overseas) may attend the two-day training course organised by the LD’s recognised TCPs and pass the examinations thereafter.The ICAC investigation arose from a corruption complaint in relation to certifications of professional qualifications for excavator operators. The complaint alleged that an excavator operator and staff members of two of the LD’s recognised TCPs might have assisted persons without experience in operating excavators to illegally obtain professional certificates. Corruption and forgery might have been involved in the process, contravening the Prevention of Bribery Ordinance and other relevant legislations.ICAC investigation revealed that at the material time, the mastermind, who was also an excavator operator, operated a machinery training field not recognised by the LD and recruited a large number of construction workers without the required experience in excavator operations to join unaccredited paid short-term courses. The mastermind also allegedly conspired with owners or employees of five engineering companies to assist those workers to provide false employment proof documents for applying for the two-day course organised by the LD’s recognised TCPs and obtaining professional certificates after passing the examinations.The investigation revealed that over 100 construction workers had allegedly used suspectedly false employment proof documents in their applications for professional certificates.All arrestees have been released on ICAC bail. The ICAC inquiries are ongoing and the Commission will continue to investigate if corruption or other illegalities were involved in the processing of applications and issuing of professional certificates by the two TCPs.===== Operation ‘Beacon Tower’: Alleged bribery and forgery over certifications of electrical workers’ professional qualifications =====In another operation “Beacon Tower”, the ICAC arrested 37 men aged between 30 and 70. They included a mastermind, the proprietors of four engineering companies and 32 electrical workers.ICAC officers also executed search warrants to search residences and offices of the individuals concerned. Suspected falsified employment proof documents and other exhibits were seized for further analysis and investigation.According to the Electricity (Registration) Regulations, all electrical workers performing relevant fixed electrical installation work are required to register with the EMSD for a recognised qualification. Certificates of registration are categorised in five grades, of which Grade A is classified as elementary level (commonly known as Grade A Electrical Work Certificate). Grade A applicants should either be holders of certificates of relevant training courses, or have obtained passing results in the recognised examinations or trade tests and possess at least five years’ working experience in electrical work. Applicants are required to submit to the EMSD documents signed or approved by a registered electrical worker or a register electrical contractor to support his/her working experience. Any ineligible persons conducting fixed electrical installation work would commit an offence and be liable on conviction to a maximum of six months’ imprisonment and a fine of $50,000.The ICAC investigation arose from a corruption complaint alleging that some individuals might have applied for Grade A Electrical Work Certificates by corrupt means. Investigation revealed that a proprietor of an electrical engineering firm was believed to be the mastermind. He had allegedly organised a paid training course for potential Grade A applicants and conspired with proprietors of four engineering companies to assist those applicants who did not possess adequate relevant work experience to falsify employment proof documents, claiming that they had five years working experience in electrical work, to support their applications to EMSD for the registration of Grade A Electrical Work Certificates.All arrestees have been released on ICAC bail. The ICAC inquiries are ongoing and the Commission will continue to investigate if corruption or other illegalities were involved in the issuing of Grade A Electrical Work Certificates.===== Follow-up actions =====While the ICAC will not make further comments on the two cases, the Commission does not rule out further law enforcement actions or arrests.The LD and the EMSD have rendered full assistance to the ICAC during its investigations. The ICAC has maintained close contact with the two departments in connection with reviewing of relevant procedures, enhancing supervision as well as corruption prevention and education to curb any illegalities and irregularities.Following the operations, the LD and the EMSD have looked into the matter and immediately examined all professional certificates or registration applications in question. The two departments have also initiated procedures to revoke the professional qualifications of those involved in the two cases.The ICAC urges members of the public and relevant industry professionals that should they find any work-related corrupt practices, they should report to the ICAC immediately through its 24-hour hotline (25 266 366). 21
Oct 2024Man charged by ICAC for allegedly offering $1,000 bribe to bank staff for opening accountThe ICAC today (October 21) charged a man with allegedly offering $1,000 to bribe a bank staff member for opening a business bank account for his company.Lyu Ganzhen, 36, businessman, faces one count of offering an advantage to an agent, contrary to section 9(2)(a) of the Prevention of Bribery Ordinance. He will appear at the Fanling Magistrates’ Courts tomorrow (October 22) for plea.The investigation arose from a corruption complaint. Inquiries revealed that on August 27, 2024, the defendant visited a branch of the Hongkong and Shanghai Banking Corporation Limited (HSBC) in Fanling, requesting to open a business account for his company. He was received by a branch staff member.Understanding that the defendant intended to open a personal bank account for business purpose, the bank staff explained to the defendant that he was required to apply at HSBC Business Centre for opening a company bank account. The defendant was alleged to have handed a passport containing a bank note of HK$1,000 to the bank staff, who immediately rejected the offer.Subsequently, the defendant was alleged to have handed the passport with the HK$1,000 bank note to the bank staff twice again, stating that he did not come to Hong Kong very often and requested the bank staff to offer assistance in opening a company account. The bank staff rejected the defendant’s offer and reported the incident to his supervisor immediately. The defendant was arrested by ICAC officers on the same day upon his departure from Hong Kong.HSBC had rendered full assistance to the ICAC during its investigation into the case. 18
Oct 2024Duo charged by ICAC with bribery over employment of subcontracted formworks workers at Community Isolation Facility construction siteThe ICAC yesterday (October 17) charged a former team leader and a former construction worker of a works subcontractor with soliciting and accepting bribes totalling about $98,000 from four newly-recruited formworks workers over the latter’s employment at a Community Isolation Facility construction site on Lantau Island during the pandemic.Lui Yu-shan, 52, former team leader of Ching Hung Engineering Company Limited (Ching Hung); and Chen Qiang, 45, former construction worker of Ching Hung, jointly face three counts of agents soliciting an advantage, while Lui further faces one count of agent accepting advantages, all contrary to section 9(1)(a) of the Prevention of Bribery Ordinance.The defendants were released on ICAC bail, pending their appearance at the West Kowloon Magistrates’ Courts next Monday (October 21) for plea.The alleged offences took place between March and June 2022. At the material time, Ching Hung was a formworks subcontractor of the construction of a Community Isolation Facility at Penny’s Bay on Lantau Island, responsible for providing construction workers. At that time, Lui was a team leader of Ching Hung who was tasked to refer workers to the company and to supervise them, including Chen, at the construction site. The company prohibited its employees from soliciting or accepting advantages from others in relation to Ching Hung’s business and affairs.In March 2022, upon Chen’s referral, four formworks workers started working at the construction site at a daily wage of $2,000 each and under the supervision of Lui. On various occasions, the two defendants allegedly solicited bribes of $500 per working day from the four workers for assisting them to be employed.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Lui and Chen had requested three of the formworks workers to pay the bribes to Lui. In fear of being terminated, the three workers made the bribe payments totalling about $66,000 to Lui whenever they had received wages from Ching Hung. In addition, Lui had also allegedly accepted bribes of $32,000 from another worker.Ching Hung rendered full assistance to the ICAC during its investigation into the case.An ICAC spokesperson stresses that soliciting or accepting bribes for assisting others in employment is a serious bribery offence. The maximum penalty on conviction of the offence is a seven-year imprisonment and a fine of $500,000. The ICAC also urges construction workers not to tolerate corruption. Should they be asked to pay bribes in exchange for their employment, they should reject and report to the ICAC immediately through the 24-hour hotline (25 266 366). 17
Oct 2024Trio charged by ICAC with bribery and fraud over referral of bank clients’ mortgage loan applicationsThe ICAC had charged two former employees of two banks and a mortgage loan referral agent in the past two days (October 15 and 16) for alleged bribery and fraud in relation to referral of loan applications of clients without the banks’ permission and swindling referral fees by making false representations to the banks. The bribe money and agent referral fees involved totally over $34,000.Amy Chow Bik-sum, 48, former assistant customer service manager of OCBC Bank (Hong Kong) Limited (formerly known as OCBC Wing Hang Bank Limited) (OCBC); Yip Man-yee, 46, sole proprietor of The Capital Property (TCP); and Mak Miu-ling, 55, former deputy manager of Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia)), jointly face one count of fraud, contrary to section 16A of the Theft Ordinance. Chow and Yip further face one count of conspiracy for an agent to accept an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance.The trio were released on ICAC bail, pending their appearance at the Kowloon City Magistrates’ Courts tomorrow (October 18) for plea.OCBC and ICBC (Asia) would release agency referral fees to the banks’ appointed mortgage intermediaries for successful residential mortgage applications, but the banks would not release commissions or agency referral fees to their staff who handled such applications.Cybernetics Property Mortgage Limited (CPM) was an appointed mortgage intermediary of ICBC (Asia). CPM would release 95% of the agency referral fee received from ICBC (Asia) as a broker fee to their agents for each successful mortgage application procured.At the material time, Chow was an assistant customer service manager of OCBC posted to its Tsim Sha Tsui branch, while Mak was a deputy manager of ICBC (Asia) posted to its Ho Man Tin branch. Among their duties, both Chow and Mak were responsible for handling residential mortgage applications. Yip was the sole proprietor of TCP, a lending referral agency, which was CPM’s agent in mortgage referral business and was entitled to receive a broker fee from CPM for each successful mortgage application referred to a bank.Between August 2019 and March 2021, Chow allegedly referred two OCBC clients to Mak and Yip respectively for arranging the clients to apply to ICBC (Asia) for mortgage loans.It is alleged that between September 2019 and March 2020, the trio falsely represented to ICBC (Asia) that the mortgage loan application of the aforesaid first client was referred by CPM, and deceived ICBC (Asia) into paying a mortgage loan referral fee of $18,000 to CPM.It is also alleged that between January and August 2021, Chow accepted a bribe of over $16,000 from Yip for referring the aforesaid second client’s mortgage loan application to TCP.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Chow, without obtaining a permission from OCBC, had allegedly referred the two clients to Mak and Yip respectively for arranging the clients to file mortgage loan applications with ICBC (Asia). Due to the aforesaid scam, TCP received two broker fees of about $17,000 and about $32,000 respectively from CPM. The ICAC probe also revealed that the aforesaid first client had never entrusted CPM and TCP to file his mortgage loan application with ICBC (Asia). Since both ICBC (Asia) and CPM had no knowledge of the relevant actual situation, they had eventually released the agent referral fee and broker fee to CPM and TCP separately.OCBC did not allow its employees to refer mortgage loan applications of the bank’s clients to other individuals or institutions, and the bank also prohibited its employees from soliciting or accepting advantages from others in relation to OCBC’s business.OCBC, ICAC (Asia) and CPM have rendered full assistance to the ICAC during its investigation into the case.