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Nov 2024Then manager of printing company charged by ICAC admits $420,000 wage fraud over mother’s serviceA then manager of a printing company, charged by the ICAC, today (November 4) admitted at the Eastern Magistrates’ Courts that he had arranged his mother to serve as a temporary staff member and made false representations about her working hours to swindle wages totalling over $420,000 in 18 months.Fong Lung, 39, then service delivery management manager of FUJIFILM Business Innovation Hong Kong Limited (FUJIFILM), today pleaded guilty to 18 counts of fraud, contrary to section 16(A) of the Theft Ordinance. The aforesaid 18 charges against his mother Cheung Lai-lin, 67, were withdrawn.Acting Chief Magistrate Mr Don So Man-lung adjourned the case to November 25 for sentence, pending Fong’s background report, and remanded Fong in the custody of the Correctional Services Department.The court heard that at the material time, Fong was a service delivery management manager of FUJIFILM and was authorised to engage temporary staff to tackle a manpower shortage, through a human resources agency engaged by FUJIFILM.In August 2021, Fong arranged Cheung to be employed by the human resources agency at an hourly rate of $75 so as to deploy Cheung to work in FUJIFILM. According to Cheung’s working hours, the human resources agency would charge FUJILFILM fees, including wages of its staff.The ICAC investigation arose from a corruption complaint. Enquiries revealed that in 18 consecutive months between August 2021 and February 2023, Fong falsely represented Cheung’s working hours when he submitted Cheung’s working timesheets to the human resources agency each month. Meanwhile, when the agency issued relevant consolidated timesheets and invoices to FUJIFILM for fees, Fong confirmed the accuracy of the content for on 17 occasions during the aforesaid period.The ICAC investigation revealed that within the period, Fong falsely represented that Cheung had worked in FUJIFILM for 5,700 hours, and hence deceived the two companies into releasing relevant wage payments totalling over $420,000 to Cheung. However, Cheung had never performed any duties in FUJIFILM at the material time.FUJIFILM and the aforesaid human resources agency rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Chase Wong. 04
Nov 2024Private cello tutor charged by ICAC admits fraud over purchase of musical instrumentA private cello tutor, charged by the ICAC, today (November 4) admitted at the West Kowloon Magistrates’ Courts that he had concealed from a parent the actual discount he obtained when assisting the latter in purchasing a cello, and pocketed the price difference totalling over $6,000.Ho Ka-yeung, 30, private cello tutor, pleaded guilty to one count of fraud, contrary to section 16A of the Theft Ordinance. Acting Principal Magistrate Mr Cheng Lim-chi adjourned the case to November 18 for sentence, pending the defendant’s community service order report, and granted him bail.The court heard that in July 2023, the defendant suggested that a parent should purchase a new cello for her son’s examination, and told the parent that he could help obtain a discount from Chairman Instruments Trading Limited (Chairman Instruments).The defendant later accompanied the parent to visit Chairman Instruments to purchase a cello and paid for it. The defendant falsely represented to the parent that the price of the cello after a discount was $24,300, and the parent deposited the same into the defendant’s personal bank account.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant was a registered instructor of Chairman Instruments and was entitled to a about half-price discount when purchasing musical instruments from the company. Chairman Instruments sold the cello worth $39,000 to the defendant at $18,000. However, the defendant never disclosed to the parent the actual amount he paid for the musical instrument, and did not reveal that he had pocketed the price difference of $6,300 in reselling the instrument.The prosecution was today represented by ICAC officer Vivian Poon.The ICAC reminds members of the public that a person acting for another, such as purchasing a musical instrument, should act honestly. To avoid contravening bribery or other criminal offences, one should not make any personal gain unless an approval is obtained from the one who entrusted him to do so, such as a parent. 31
Oct 2024Insurance intermediary charged by ICAC guilty of conspiring with policyholders over insurance claims fraudAn insurance intermediary, charged by the ICAC, was today (October 31) convicted at the Eastern Magistrates’ Courts of conspiring with two policyholders to deceive an insurer into paying accident insurance compensation to them by making false representations about their injuries. The offence was revealed in the course of an ICAC corruption investigation.Lalwani Jay Jerome, 35, formerly engaged by Asia One Asset Management Limited (Asia One) as a referrer, was found guilty of four counts of conspiracy to defraud, contrary to the Common Law.Magistrate Mr Tsang Chung-yiu adjourned the case to November 19 for sentence, pending Laiwani’s background report, and granted him bail. The Magistrate also ordered Laiwani to compensate a sum of about $52,000 to the insurer.At the material time, insurance broker Asia One was entrusted by AIA International Limited (AIA) to sell its insurance products to customers. When the case took place between late 2017 and June 2018, two policyholders Tam Kai-chun and Lam In-kwan respectively took out an AIA life insurance policy with an accident rider through Laiwani.The insurance policies covered accident medical expenses reimbursement and accident indemnity. The policyholders were required to submit an accident insurance claim to AIA directly or via Asia One, supported by documentary proof, including receipts of medical consultations or treatments, and sick leave certificates or receipts issued by doctors or physiotherapists.The court heard that in their applications for insurance claims, Laiwani and the two policyholders falsely represented to AIA that the latter had respectively suffered injuries in his/her back or knees, and attached various documents purportedly issued by two doctors and two physiotherapy clinics to support that the duo had suffered from injuries, attended for medical consultations with the aforesaid doctors or therapists of the physiotherapy clinics, and taken sick leave. As a result, they had deceived AIA into paying insurance compensation totalling at least over $52,000.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the two policyholders did not suffer from the aforesaid injuries, nor did they receive any treatment or take the sick leave concerned.The aforesaid policyholders, Tam, 37, and Lam, 33, were also charged by the ICAC for their roles in separate cases. The duo had earlier pleaded guilty and their cases were both adjourned to November 25 for mention.AIA rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Steven Liu, assisted by ICAC officer Vivian Poon.The ICAC will continue collaborating with the industry to provide integrity training to insurance intermediaries to enhance their integrity standards. 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 also help insurance companies establish and strengthen their anti-corruption controls/systems. For more information on the ICAC’s preventive and educational services for the industry, please visit the Ethics Promotion Website for the Insurance Industry produced by the Hong Kong Business Ethics Development Centre, and the Corruption Prevention Department’s Corruption Prevention Advisory Service Web Portal. 30
Oct 2024Private residential flat owner charged by ICAC with bribing property agent for avoiding commissionThe ICAC today (October 30) charged a private residential flat owner for allegedly offering a bribe of $4,500 to a property agent who handled the leasing of her flat, requesting the latter not to report the transaction to the property agency in a bid to avoid paying an agency commission.Chan Wing-tak, 46, faces one count of offering an advantage to an agent, contrary to section 9(2)(a) of the Prevention of Bribery Ordinance. She was released on ICAC bail, pending her appearance at the Kowloon City Magistrates’ Courts on Friday (November 1) for plea.At the material time, the defendant was the owner of a private residential flat in Homantin. Since February 2023, the defendant had engaged various property agencies, including Hong Kong Property Services (Agency) Limited (Hong Kong Property), to lease the flat.In general, for any tenancy transaction, both the flat owner and the tenant are each required to pay an agency commission to Hong Kong Property. The company prohibited its property agents from soliciting or accepting any advantage from anyone in connection with its business.On August 13, 2023, a property agent of Hong Kong Property arranged a potential tenant to visit the defendant’s aforesaid flat. The potential tenant agreed to rent the flat at a monthly rent of $25,000.It was alleged that the defendant had offered a bribe of $4,500 to the property agent, requesting the latter not to report the tenancy transaction of the flat to Hong Kong Property, in a bid to avoid paying the agency commission to Hong Kong Property by corrupt means. The property agent rejected the offer immediately and reported the matter to Hong Kong Property.Hong Kong Property offered full assistance to the ICAC during its investigation.An ICAC spokesperson stresses that offering advantage to an estate agent without the permission of the agent’s employer or principal is a serious bribery offence. The maximum penalty on conviction of the offence is a seven-year imprisonment and a fine of $500,000. Members of the public should immediately report suspected corruption to the ICAC. The ICAC 24-hour Report Corruption Hotline: 25 266 366. 25
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.
Nov 2024Then manager of printing company charged by ICAC admits $420,000 wage fraud over mother’s serviceA then manager of a printing company, charged by the ICAC, today (November 4) admitted at the Eastern Magistrates’ Courts that he had arranged his mother to serve as a temporary staff member and made false representations about her working hours to swindle wages totalling over $420,000 in 18 months.Fong Lung, 39, then service delivery management manager of FUJIFILM Business Innovation Hong Kong Limited (FUJIFILM), today pleaded guilty to 18 counts of fraud, contrary to section 16(A) of the Theft Ordinance. The aforesaid 18 charges against his mother Cheung Lai-lin, 67, were withdrawn.Acting Chief Magistrate Mr Don So Man-lung adjourned the case to November 25 for sentence, pending Fong’s background report, and remanded Fong in the custody of the Correctional Services Department.The court heard that at the material time, Fong was a service delivery management manager of FUJIFILM and was authorised to engage temporary staff to tackle a manpower shortage, through a human resources agency engaged by FUJIFILM.In August 2021, Fong arranged Cheung to be employed by the human resources agency at an hourly rate of $75 so as to deploy Cheung to work in FUJIFILM. According to Cheung’s working hours, the human resources agency would charge FUJILFILM fees, including wages of its staff.The ICAC investigation arose from a corruption complaint. Enquiries revealed that in 18 consecutive months between August 2021 and February 2023, Fong falsely represented Cheung’s working hours when he submitted Cheung’s working timesheets to the human resources agency each month. Meanwhile, when the agency issued relevant consolidated timesheets and invoices to FUJIFILM for fees, Fong confirmed the accuracy of the content for on 17 occasions during the aforesaid period.The ICAC investigation revealed that within the period, Fong falsely represented that Cheung had worked in FUJIFILM for 5,700 hours, and hence deceived the two companies into releasing relevant wage payments totalling over $420,000 to Cheung. However, Cheung had never performed any duties in FUJIFILM at the material time.FUJIFILM and the aforesaid human resources agency rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Chase Wong. 04
Nov 2024Private cello tutor charged by ICAC admits fraud over purchase of musical instrumentA private cello tutor, charged by the ICAC, today (November 4) admitted at the West Kowloon Magistrates’ Courts that he had concealed from a parent the actual discount he obtained when assisting the latter in purchasing a cello, and pocketed the price difference totalling over $6,000.Ho Ka-yeung, 30, private cello tutor, pleaded guilty to one count of fraud, contrary to section 16A of the Theft Ordinance. Acting Principal Magistrate Mr Cheng Lim-chi adjourned the case to November 18 for sentence, pending the defendant’s community service order report, and granted him bail.The court heard that in July 2023, the defendant suggested that a parent should purchase a new cello for her son’s examination, and told the parent that he could help obtain a discount from Chairman Instruments Trading Limited (Chairman Instruments).The defendant later accompanied the parent to visit Chairman Instruments to purchase a cello and paid for it. The defendant falsely represented to the parent that the price of the cello after a discount was $24,300, and the parent deposited the same into the defendant’s personal bank account.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the defendant was a registered instructor of Chairman Instruments and was entitled to a about half-price discount when purchasing musical instruments from the company. Chairman Instruments sold the cello worth $39,000 to the defendant at $18,000. However, the defendant never disclosed to the parent the actual amount he paid for the musical instrument, and did not reveal that he had pocketed the price difference of $6,300 in reselling the instrument.The prosecution was today represented by ICAC officer Vivian Poon.The ICAC reminds members of the public that a person acting for another, such as purchasing a musical instrument, should act honestly. To avoid contravening bribery or other criminal offences, one should not make any personal gain unless an approval is obtained from the one who entrusted him to do so, such as a parent. 31
Oct 2024Insurance intermediary charged by ICAC guilty of conspiring with policyholders over insurance claims fraudAn insurance intermediary, charged by the ICAC, was today (October 31) convicted at the Eastern Magistrates’ Courts of conspiring with two policyholders to deceive an insurer into paying accident insurance compensation to them by making false representations about their injuries. The offence was revealed in the course of an ICAC corruption investigation.Lalwani Jay Jerome, 35, formerly engaged by Asia One Asset Management Limited (Asia One) as a referrer, was found guilty of four counts of conspiracy to defraud, contrary to the Common Law.Magistrate Mr Tsang Chung-yiu adjourned the case to November 19 for sentence, pending Laiwani’s background report, and granted him bail. The Magistrate also ordered Laiwani to compensate a sum of about $52,000 to the insurer.At the material time, insurance broker Asia One was entrusted by AIA International Limited (AIA) to sell its insurance products to customers. When the case took place between late 2017 and June 2018, two policyholders Tam Kai-chun and Lam In-kwan respectively took out an AIA life insurance policy with an accident rider through Laiwani.The insurance policies covered accident medical expenses reimbursement and accident indemnity. The policyholders were required to submit an accident insurance claim to AIA directly or via Asia One, supported by documentary proof, including receipts of medical consultations or treatments, and sick leave certificates or receipts issued by doctors or physiotherapists.The court heard that in their applications for insurance claims, Laiwani and the two policyholders falsely represented to AIA that the latter had respectively suffered injuries in his/her back or knees, and attached various documents purportedly issued by two doctors and two physiotherapy clinics to support that the duo had suffered from injuries, attended for medical consultations with the aforesaid doctors or therapists of the physiotherapy clinics, and taken sick leave. As a result, they had deceived AIA into paying insurance compensation totalling at least over $52,000.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the two policyholders did not suffer from the aforesaid injuries, nor did they receive any treatment or take the sick leave concerned.The aforesaid policyholders, Tam, 37, and Lam, 33, were also charged by the ICAC for their roles in separate cases. The duo had earlier pleaded guilty and their cases were both adjourned to November 25 for mention.AIA rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by Senior Public Prosecutor Steven Liu, assisted by ICAC officer Vivian Poon.The ICAC will continue collaborating with the industry to provide integrity training to insurance intermediaries to enhance their integrity standards. 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 also help insurance companies establish and strengthen their anti-corruption controls/systems. For more information on the ICAC’s preventive and educational services for the industry, please visit the Ethics Promotion Website for the Insurance Industry produced by the Hong Kong Business Ethics Development Centre, and the Corruption Prevention Department’s Corruption Prevention Advisory Service Web Portal. 30
Oct 2024Private residential flat owner charged by ICAC with bribing property agent for avoiding commissionThe ICAC today (October 30) charged a private residential flat owner for allegedly offering a bribe of $4,500 to a property agent who handled the leasing of her flat, requesting the latter not to report the transaction to the property agency in a bid to avoid paying an agency commission.Chan Wing-tak, 46, faces one count of offering an advantage to an agent, contrary to section 9(2)(a) of the Prevention of Bribery Ordinance. She was released on ICAC bail, pending her appearance at the Kowloon City Magistrates’ Courts on Friday (November 1) for plea.At the material time, the defendant was the owner of a private residential flat in Homantin. Since February 2023, the defendant had engaged various property agencies, including Hong Kong Property Services (Agency) Limited (Hong Kong Property), to lease the flat.In general, for any tenancy transaction, both the flat owner and the tenant are each required to pay an agency commission to Hong Kong Property. The company prohibited its property agents from soliciting or accepting any advantage from anyone in connection with its business.On August 13, 2023, a property agent of Hong Kong Property arranged a potential tenant to visit the defendant’s aforesaid flat. The potential tenant agreed to rent the flat at a monthly rent of $25,000.It was alleged that the defendant had offered a bribe of $4,500 to the property agent, requesting the latter not to report the tenancy transaction of the flat to Hong Kong Property, in a bid to avoid paying the agency commission to Hong Kong Property by corrupt means. The property agent rejected the offer immediately and reported the matter to Hong Kong Property.Hong Kong Property offered full assistance to the ICAC during its investigation.An ICAC spokesperson stresses that offering advantage to an estate agent without the permission of the agent’s employer or principal is a serious bribery offence. The maximum penalty on conviction of the offence is a seven-year imprisonment and a fine of $500,000. Members of the public should immediately report suspected corruption to the ICAC. The ICAC 24-hour Report Corruption Hotline: 25 266 366. 25
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.