Recent ICAC Cases


25
Jul 2022
Ex-senior executive duo of duty-free chain store charged by ICAC over $26m red wine purchase fraudTwo former senior executive of a duty-free chain store were charged by the ICAC today (July 25) with conspiracy to defraud for allegedly inflating bottled red wine sourced from a French supplier by over $12 million and reselling them to the chain store at over $26 million.Au Tsz-kei, 68, former merchandising and buying director of Sky Connection Limited (Sky Connection); and Lau Shu-yin, 75, former general manager of Sky Connection, jointly face one count of conspiracy to defraud, contrary to Common Law.The defendants were released on ICAC bail, pending their appearance in the West Kowloon Magistrates’ Courts on Wednesday (July 27) for the case to be transferred to the District Court.The ICAC investigation arose from a corruption complaint. The duo were charged upon legal advice sought from the Department of Justice after completion of the investigation.The alleged offence took place between August 2004 and May 2011. At the material time, Sky Connection sold duty-free goods under the business name “Free Duty”. The merchandising and buying department of Sky Connection, headed by Au, was responsible for sourcing wine and tobacco for sale at “Free Duty” shops. A winery in France was one of the vendors supplying bottled red wine to Sky Connection.The charge alleges that the defendants conspired with a then chief executive officer of Sky Connection and a then subordinate buyer of Au to defraud the company by dishonestly causing it to place purchase orders for bottled red wine with Jetfair Development Limited (Jetfair) and Master Good Trading Limited (Master Good) instead of with the above French winery, thereby inducing Sky Connection to pay inflated prices for those red wine.During the above period, Sky Connection had placed 56 purchase orders for bottled red wine with Jetfair and Master Good at over $26 million. It is alleged that Jetfair and Master Good had sourced the bottled red wine concerned from the French winery at over $14 million and resold them to Sky Connection at inflated prices, causing Sky Connection to make extra payments of over $12 million.ICAC investigation revealed that Lau and his daughter were the respective sole shareholder-cum-director of Master Good and Jetfair at the material time. It is alleged that Lau had never disclosed to Sky Connection his association with the two companies.Sky Connection has rendered full assistance to the ICAC during its investigation into the case.
21
Jul 2022
Ex-cleaning supervisor and son charged by ICAC for wage fraudA former supervisor of a cleaning services contractor and his son were charged by the ICAC yesterday (July 20) for allegedly deceiving the contractor into paying wages totalling about $350,000 by falsifying the son’s attendance records over a span of around two and a half years.Yip Hong-yau, 42, former supervisor of ISS Facility Services Limited (ISS); and his son Louis Yip Wai-lok, 24, who is reportedly a former cleaning worker of ISS, jointly face one count of fraud, contrary to Section 16A of the Theft Ordinance.Louis Yip further faces one alternative charge of dealing with property known or believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance.The duo were released on ICAC bail, pending their appearance in the Eastern Magistrates’ Courts tomorrow (July 22) for the case to be transferred to the District Court.At the material time, Yip Hong-yau was a supervisor of ISS, which was a cleaning services contractor of a commercial building in Central. He was responsible for recruiting and supervising cleaning workers. In December 2017, Yip Hong-yau registered for Louis Yip to join ISS as a cleaning worker reportedly posted to the building under his supervision.The charge alleges that between December 2017 and June 2020, Yip Hong-yau and Louis Yip falsely represented to ISS that the attendance records of Louis Yip accurately reflected his working hours, and with intent to defraud, induced ISS to release payments calculated in accordance with the attendance records, which resulted in benefit to them or in prejudice to ISS.It is alleged that Louis Yip had never performed cleaning duties at the building. During the above period, ISS paid wages totalling about $350,000 to Louis Yip through his bank account.The alternative charge alleges that between January 2018 and July 2020, Louis Yip dealt with the above sum of about $350,000 held in his bank account, knowing or having reasonable grounds to believe that it in whole or in part directly or indirectly represented the proceeds of an indictable offence.The investigation arose from a corruption complaint. The duo were charged after seeking legal advice from the Department of Justice upon completion of the investigation. ISS has rendered full assistance to the ICAC during its investigation into the case.
20
Jul 2022
Company director charged as ICAC probe reveals money launderingA company director was charged by the ICAC today (July 20) for allegedly dealing with crime proceeds of $200,000, being payments his company received for trademark and patent registration services claimed to be provided by it. The illegal activities were revealed in the course of a corruption investigation.Chiu Tsang-ting, 46, sole shareholder cum director of Prince Dragon Limited (Prince Dragon), faces one count of dealing with property known or believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance.The defendant was released on ICAC bail, pending his appearance in the West Kowloon Magistrates’ Courts tomorrow (July 21) for plea.In early 2018, Prince Dragon was engaged by Conpak Intellectual Property Limited (Conpak) as a vendor to provide trademark and patent registration service in Singapore and Australia for clients of Conpak.Conpak subsequently placed with Prince Dragon a total of 30 service orders and released 14 payments totalling over $200,000 to it. It is alleged that on each occasion after Prince Dragon received the payments, the defendant transferred the exact amount of money to the bank account of another company.The charge alleges that between May 2018 and July 2020, the defendant dealt with the above total sum of $200,000, knowing or having reasonable grounds to believe that it in whole or in part directly or indirectly represented any person’s proceeds of an indictable offence.ICAC investigation revealed that Prince Dragon was a company with no actual business. The above trademark and patent registration services were allegedly provided to Conpak by the aforesaid company. The defendant’s wife and a former manager of Conpak were both authorised signatories of the abovementioned bank account of that company.The ICAC investigation arose from a corruption complaint. The defendant was charged after seeking legal advice from the Department of Justice. As the relevant corruption investigation is continuing, the ICAC does not rule out further law enforcement actions.Conpak has rendered full assistance to the ICAC during its investigation into the case.
20
Jul 2022
Ex-employee of investment firm charged by ICAC with accepting bribes over vehicle maintenance ordersA former employee of an investment firm was charged by the ICAC today (July 20) for allegedly conspiring with two proprietors of a garage to accept bribes for awarding vehicle maintenance orders of the firm to the garage.Fung Kwok-kit, 61, former general assistant-cum-driver of Asia Financial Holdings Limited (Asia Financial Holdings), faces 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. He was released on ICAC bail, pending his appearance in the Eastern Magistrates’ Courts on Friday (July 22) for plea.The alleged offence took place between January 2018 and October 2020. At the material time, Asia Financial Holdings had appointed United Motors Company (United Motors) as one of its vehicle maintenance contractors. United Motors was operated by its sole proprietor and a former proprietor.The charge alleges that Fung conspired with the above two proprietors of United Motors to, without lawful authority or reasonable excuse, accept totalling at least $12,000 from the duo as an inducement to or reward for causing Asia Financial Holdings to award vehicle maintenance orders to United Motors.During the period, Asia Financial Holdings had awarded about 40 vehicle maintenance orders to United Motors and settled maintenance fees totalling about $360,000.The ICAC investigation arose from a corruption complaint. The above two proprietors of United Motors were earlier charged with bribery in another case.Asia Financial Holdings has rendered full assistance to the ICAC during its investigation into the cases.
15
Jul 2022
Ex-insurance agents charged by ICAC admit $700,000 commission and compensation fraudTwo former insurance agents, charged by the ICAC, today (July 15) admitted at the District Court that they had deceived an insurer into releasing commissions and compensations totalling about $700,000 by making false representations on the occupations and incomes of nine insurance policy applicants and falsely claimed that they were injured after the insurance policies were successfully taken out.Leung King-kei 36, former insurance agent of AIA International Limited (AIA), 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, pleaded guilty to one count of conspiracy to defraud jointly charged with Leung.Judge Mr Gary Lam Kar-yan adjourned the case to August 5 for sentence and remanded Leung in the custody of the Correctional Services Department. Yu was granted bail till sentencing, pending his community service order report.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. The 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 Senior Public Prosecutor Ivan Shiu, assisted by ICAC officer Keaton Ma.

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