Recent ICAC Cases


01
Mar 2024
Trio charged by ICAC jailed up to six years and four months over $37.5m critical illness insurance compensation fraudAn insurance agent and two others, charged by the ICAC, were today (March 1) sentenced to jail terms ranging from four and a half years to six years and four months at the Court of First Instance of the High Court for their roles in a $37.5 million critical illness insurance compensation scam revealed in a graft probe. Cancer patients were posed in the scam as policyholders to undergo medical examinations at clinical institutions to obtain medical certificates.Wong Ka-keung, 45, former insurance agent of AIA International Limited (AIA), received a jail term of six years and four months; Lo Chun-kit, 45, driver; and Leung Wai-kin, 42, renovation worker, were respectively jailed for five years and four and a half years.In sentencing, Madam Justice Anna Lai Yuen-kee said Wong was the mastermind of the scam spanning over three years and reprimanded his serious breach of trust which caused substantial financial loss to the insurer, adding that his culpability should be reflect in the length of sentence. Lo and Leung also played essential roles in the scam, although they were less culpable.The trio earlier 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.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.
01
Mar 2024
Bakery employee charged by ICAC jailed for three and a half months for theft revealed in graft probeOne of two then employees of a bakery, charged by the ICAC, was today (March 1) sentenced to three and a half months’ imprisonment at the Shatin Magistrates’ Courts after the duo pleaded guilty to conspiracy to steal a total of over $110,000 from a branch. The offence was revealed in the course of a graft probe.Fung Tat-yan, 21, and Cheung Cho-man, 22, respectively former part-time salesperson and salesperson of A-1 Bakery Company (Hong Kong) Limited (A-1 Bakery), pleaded guilty to one count of conspiracy to steal, contrary to Section 9 of the Theft Ordinance and Section 159A of the Crimes Ordinance.Fung was sentenced to immediate imprisonment of three and a half months while Cheung was remanded in custody of the Correctional Services Department until March 15 for sentence, pending her community service order report.In sentencing, Acting Principal Magistrate Ms Amy Chan Wai-mun reprimanded the defendants for breaching the trust placed in them and committing a crime, which was serious in nature and premeditated.At the material time, both defendants worked at a branch of A-1 Bakery in Shatin, responsible for its daily operation. Its customers could pay electronically or pay in cash.The ICAC investigation arose from a corruption complaint. Enquiries revealed that on various occasions, the duo voided the transactions of customers in the point-of-sales system to steal the relevant cash and pocketed the cash paid by customers without inputting any transaction records. They also launched a “buy-one-get-one-free for cash payment only” promotional offer by themselves to pocket more cash.It was also revealed that between April and May 2023, the duo pocketed several thousand dollars each day, totalling over $110,000. They fully repaid A-1 Bakery after being terminated.A-1 Bakery had rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer James Law.
29
Feb 2024
Company vice president charged by ICAC for soliciting $2m bribe over property development project disputeThe vice president of a company was charged by the ICAC yesterday (February 28) for allegedly soliciting a bribe of $2 million to $3 million from a business partner for assisting to resolve a dispute between the two parties over a property development project on terms most favourable to the business partner.Wang Wenning, 64, vice president of China Coal Hong Kong Limited (CCHK, formerly known as Double Resources Limited), faces one count of agent soliciting an advantage, contrary to Section 9(1)(b) of the Prevention of Bribery Ordinance. He was released on ICAC bail, pending his appearance at the Eastern Magistrates’ Courts tomorrow (March 1) for plea.In 1994, the parent company of CCHK planned to jointly invest in a property development project with the business partner and capital injection would be made by CCHK. CCHK subsequently intended to withdraw from the project but the two parties failed to reach a final agreement.Since 2018, CCHK and the business partner had a dispute over the amount of money entitled by CCHK regarding the realisable assets of the project. The defendant was assigned to resolve the dispute.It is alleged that on October 8, 2018, the defendant solicited from a director-cum- shareholder of the business partner a bribe between $2 million and $3 million for assisting to resolve the dispute on terms and conditions most favourable to the business partner. The solicitation was declined.CCHK does not allow its employees to solicit or accept advantages from others in relation to CCHK’s affairs and business.CCHK and the business partner concerned have rendered full assistance to the ICAC during its investigation into the case.
28
Feb 2024
Trio 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 2024
Property officer charged by ICAC jailed for four months for conspiring with renovation contractor to deceive IOThe ICAC had earlier charged a then property officer of a property management company and a renovation contractor as a corruption investigation revealed that they had conspired together to deceive the Incorporated Owners (IO) of a private residential building in To Kwa Wan into awarding a water pipe replacement project to the contractor by using false quotations. The property officer was today (February 9) sentenced to four months’ imprisonment at the Kowloon City Magistrates’ Courts.Lau Cheuk-yan, 42, former property officer of Harbourfield Property Management Limited (Harbourfield), was earlier convicted of one count of conspiracy to defraud, contrary to the Common Law.In sentencing, Magistrate Mr Philip Chan Chee-fai remarked that the court had to impose a custodial sentence on Lau for showing no remorse for orchestrating a scam which excluded other companies from participating in the works tendering exercise concerned.Co-defendant Chan Kam-wah, 57, director-cum-shareholder of Hing Fat Building Maintenance Company Limited (Hing Fat), was earlier jailed for two months and two weeks after pleading guilty to the conspiracy to defraud charge; and three counts of possessing a false instrument, contrary to section 75(2) of the Crimes Ordinance.At the material time, Harbourfield provided property management service to Sunny Court, a private residential building in To Kwa Wan. Staff of Harbourfield were required to source at least three quotations from its approved contractors before conducting any renovation works worth between $10,000 and $200,000.In 2021, Harbourfield conducted a quotation exercise for the Sunny Court to select a renovation contractor for a water pipe replacement project. The IO of Sunny Court received three quotations via Lau. In May 2021, the project was awarded to Hing Fat, which offered the lowest bid of $70,000.The ICAC investigation arose from a corruption complaint. Enquiries revealed that the two engineering companies concerned were not approved contractors of Harbourfield and they had never submitted the two quotations. But Lau and Chan conspired together to defraud the IO of Sunny Court by submitting the two false quotations. It was also revealed that Chan possessed three other false quotations purportedly issued by one of the two engineering companies to another residential building, a commercial building and a shopping mall.Harbourfield and the IO of Sunny Court had 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 Potina Koo.The ICAC attaches great importance to the integrity standard of the property management industry. Staff of property management companies are reminded to uphold a high standard of integrity and abide by the laws. The ICAC has recently launched the “Corruption Prevention Guide for Property Management Companies” to enhance the corruption prevention capabilities of property management companies and assist property management companies in managing corruption risks in providing property management services, including assisting IOs in carrying out procurement for renovation works.

Back To Top