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Nov 2024Mastermind and 12 others charged by ICAC in $52m dummy agents commissions fraud plead guilty in District CourtAn ICAC corruption investigation earlier revealed a dummy insurance agents’ scheme where individuals had conspired together to defraud two insurers of commissions totalling about $52 million by making false representation about the handling agents of 478 insurance policies and to launder crime proceeds. The mastermind, a former branch manager of an insurer, and 12 dummy insurance agents today (November 23) pleaded guilty at the District Court to their respective roles in the scheme.The instigator in the present case, Lo Yin-wa, 32, former branch manager of FWD Life Insurance Company (Bermuda) Limited (FWD), pleaded guilty to 20 charges – two of conspiracy to defraud, contrary to the Common Law; and 18 of conspiracy to deal with property known or believed to represent proceeds of an indictable offence (conspiracy to launder crime proceeds), contrary to section 25(1) of the Organized and Serious Crimes Ordinance and section 159A(1) of the Crimes Ordinance.Twelve co-defendants, aged between 24 and 61, are seven insurance agents of Lo Yin-wa’s team in FWD – Chan Ka-yu, Lam Hiu-tung, Lam Wai-kit, Wong Bryant, Woo Kin-leung, Zhou Yutian and Cheung Ho-cheung; the former unit manager of Sun Life Hong Kong Limited (Sun Life HK), Kwok Yun-fong, and her four downline agents Tang Ho-lun, To Wai-to, Wong Lin-yan and Leung Tsz-wing. They admitted various counts of conspiracy to defraud and conspiracy to launder crime proceeds.Judge Mr Josiah Lam Wai-kuen adjourned the case to December 21 for continuation of mitigation. To Wai-to, Wong Lin-yan, Chan Ka-yu, Lam Hiu-tung, Zhou Yutian and Cheung Ho-cheung were remanded in custody of the Correctional Services Department, while another seven defendants were granted bail.The ICAC investigation arose from a corruption complaint against dummy insurance agents. Enquiries revealed that between February 2016 and November 2020, Lo Yin-wa had recruited co-defendants in the case and others to join either Sun Life HK or FWD. Lo Yin-wa told some of the recruited persons that they were dummy insurance agents and were not required to source any clients after joining the insurers.The ICAC investigation revealed that Lo Yin-wa had conspired with other FWD insurance agents to falsely represent that the FWD insurance agents recruited by Lo Yin-wa were the handling agents of 272 insurance policy applications. In addition, Lo Yin-wa had conspired with Kwok Yun-fong and other Sun Life HK insurance agents to falsely represent that the Sun Life HK insurance agents recruited by Lo Yin-wa were the handling agents of 206 insurance policy applications.Sun Life HK and FWD, which had no knowledge of the scheme, approved the above 478 applications and released commissions, incentives, bonuses and allowances totalling over $22 million to Lo Yin-wa’s team, and over $29 million to Kwok Yun-fong’s team.The ICAC enquiries revealed that the above 478 insurance policy applications mostly involved high commission rate insurance products. In the end, most of the insurance policies concerned lapsed after subsequent premiums were not paid.The court also heard that Lo Yin-wa requested the dummy insurance agents to return most of the payments to her after receiving commissions and other payments from the insurers. Individuals involved in the case then laundered crime proceeds totalling about $47 million in relation to the scheme through 23 bank accounts, which in fact were controlled by Lo Yin-wa, to receive the commissions and other payments concerned.Lo Yin-wa’s husband and FWD insurance agent, Kwok Ho-leung, was also charged with two counts of conspiracy to defraud. The charges were left on file at the District Court.Four other co-defendants, former Sun Life HK insurance agents Mo Wing-han and Lo Nga-wing; and former FWD insurance agents Ngan Tsz-ting and Kong Tsz-ying, earlier pleaded not guilty to conspiracy to launder crime proceeds and conspiracy to defraud at the District Court. Their case was adjourned to March 20, 2025 for a pre-trial review and the trial is set to commence on May 12, 2025.FWD and Sun Life HK rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officers Nick Lai and Chase Wong. 20
Nov 2024Team leader of Three-Runway System Project charged by ICAC jailed for 17 weeks for accepting bribes from imported workersFollowing the receipt of corruption complaints alleging wage exploitation of imported workers, the ICAC conducted an investigation and revealed that a leader of a team of carpenters of the Three-Runway System Project (3RS Project) of the Hong Kong International Airport had accepted bribes totalling about $54,000 from 10 imported workers for assisting them to continue their employment. The team leader, charged by the Commission, received a jail term of 17 weeks after pleading guilty to bribery at the West Kowloon Magistrates’ Courts today (November 20).The ICAC 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. To enhance imported workers’ understanding of Hong Kong’s anti-corruption laws, the ICAC has arranged corruption prevention talks for imported workers within eight weeks of their arrival. Additionally, the ICAC will also make use of other channels to sustain the anti-graft education to imported workers.The team leader of carpenters, Chen Xianliang, 62, was an imported worker employed by Gammon Construction Limited (Gammon). He pleaded guilty to 10 counts of agent accepting an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance.In sentencing, Acting Principal Magistrate Mr Cheng Lim-chi remarked that the offences in the present case were serious in nature. The court would not tolerate any illicit activity of its kind and that an immediate custodial sentence was inevitable.The court heard that in 2020, Gammon was awarded by the Airport Authority Hong Kong a contract of automated people mover and baggage handling system project of the 3RS Project and imported workers through the Labour Importation Scheme for Construction Sector of the Development Bureau. The defendant was an imported team leader employed by Gammon through the scheme. He was responsible for leading a team of imported carpenters under the supervision of a subcontractor of Gammon.The ICAC investigation revealed that 10 workers referred by the defendant to work in his team at a monthly salary of $37,800 arrived Hong Kong from the Mainland in late December 2023.After the arrival of the carpenters, the defendant solicited a bribe of $600 per working day from each of them. The carpenters believed that their employment by Gammon would not be continued if they had not paid bribes to the defendant. In the end, the defendant accepted bribes ranging from $4,800 to $5,400 from each carpenter, totalling about $54,000.Gammon prohibited its employees from soliciting or accepting any advantages from others for matters in relation to the affairs or business of the company.The Development Bureau and Gammon rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Fung Lee. 19
Nov 2024Insurance intermediary charged by ICAC gets seven months’ jail for conspiring with policyholders over insurance claims fraudAn insurance intermediary, charged by the ICAC, was today (November 19) sentenced to seven months’ imprisonment at the Eastern Magistrates’ Courts for 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 earlier convicted of four counts of conspiracy to defraud, contrary to the Common Law, after trial. The court had earlier ordered the defendant to compensate a sum of about $52,000 to the insurer.In sentencing, Magistrate Mr Tsang Chung-yiu reprimanded the defendant for his dishonesty, adding that the court had to mete out a custodial sentence to convey a proper message to the society that the fraudulent acts in the present case amounted to serious offences.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 Lalwani.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, Lalwani 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 policyholders concerned, Tam, 37, and Lam, 34, 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 Ivy Ho. 13
Nov 2024Works subcontractor charged by ICAC over $330,000 wage fraud and perversion over graft probeThe ICAC today (November 13) charged a works subcontractor and a worker for allegedly conspiring together to defraud a glass facade contractor of overpaid wages totalling over $330,000 by making false representations about workers’ attendance records. The subcontractor was also charged with perversion for allegedly instructing workers to falsely claim the latter’s attendance.Poon Tat-chun, 29, operator of Ocean Crown Enterprise Ltd (OCL); and Law Ka-ming, 29, then worker of OCL, jointly face one count of conspiracy to defraud, contrary to the Common Law. Poon further faces one count of doing an act tending and intended to pervert the course of public justice, contrary to the Common Law.The duo were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Friday (November 15) for mention. An application will be later lodged by the prosecution for transferring the case to the District Court for plea.At the material time, Poon was the operator of OCL engaged by a glass facade contractor to provide workers to conduct glass installation works at the construction site of a private residential estate on Lantau Island. OCL employed some 10 workers, including Law, to work at the construction site at a daily wage each ranged from $1,050 to $1,400.It is alleged that between February and April 2021, Poon and Law conspired with another OCL worker to overstate the number of working days of some workers and falsely represent to the contractor that the attendance records submitted by OCL were genuine to deceive the contractor into overpaying wages totalling over $330,000 to OCL.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Poon had allegedly instructed Law and other workers to make false representations about their attendance records, and requested the workers to return the overpaid wages to him each month.In addition, Poon allegedly perverted the course of public justice in the course of the ICAC investigation into the scheme. It is alleged that in late April 2022, Poon requested one of the OCL workers to pass a message to three other workers, asking them to falsely tell ICAC officers that they had signed the workers’ attendance records concerned, and to reply all questions asked by ICAC officers by saying “no idea”.ICAC enquiries revealed that the worker found Poon’s instruction improper, and did not follow the instruction which requested other workers to tell lies in the ICAC investigation.The glass facade contractor rendered full assistance to the ICAC during its investigation into the case. 13
Nov 2024Ex-general manager of pharmaceutical wholesaler among three charged by ICAC over $1.1m service fees fraud and money launderingA then general manager of a pharmaceutical wholesaler and his subordinate were charged by the ICAC yesterday (November 12) for making false representation about consultancy and other services provided by a secretarial services company operated by the subordinate to defraud the pharmaceutical wholesaler of service fees totalling over $1.1 million. Meanwhile, a business partner of the subordinate was charged with money laundering.Watson Yau Wei-ching, 54, then general manager of Kingworld Medicine Healthcare Limited (Kingworld Medicine); and Alen Yu Yuen-to, 43, then marketing officer of Kingworld Medicine, jointly face two counts of fraud, contrary to section 16A(1) of the Theft Ordinance. Yau further faces another count of fraud.Co-defendant Chau Pak-ho, 40, director cum shareholder of Asia Great Services Limited (Asia Great), faces one count of dealing with property known or believed to represent proceeds of an indictable offence (commonly known as money laundering), contrary to section 25(1) of the Organized and Serious Crimes Ordinance.The three defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (November 14) for mention. The prosecution will later apply for transferring the case to the District Court for plea.Between February 2017 and September 2023, Kingworld Medicine was a distributor and wholesaler of pharmaceuticals and healthcare products in Hong Kong and the Mainland. Yau oversaw sales and marketing of Kingworld’s products, while Yu was his subordinate. Yu and Chau were also directors and shareholders of Asia Great which provided secretarial services to clients.Hong Kong Ling Feng Advertising Company Limited (Ling Feng Advertising) was a contractor of Kingworld Medicine responsible for promoting its products. Kingworld Medicine would pay the contract sum to Ling Feng Advertising in advance for deduction of the product promotion costs.The charge alleges that Yau and Yu had falsely represented to Kingworld Medicine that seven invoices issued by Asia Great were genuine, and with intent to defraud, induced Kingworld Medicine to pay Asia Great consultancy services fees totalling over $530,000. Yau, with intend to defraud, also allegedly induced Kingworld Medicine to pay Asia Great print and design services fees in a sum of $62,000 by similar means.It is also alleged that the duo had falsely represented to Ling Feng Advertising that six invoices issued by Asia Great were genuine, and with intent to defraud, induced Ling Feng Advertising to pay consultancy services fees totalling over $540,000 to Asia Great on behalf of Kingworld Medicine, and deduct an amount of over $580,000 from the contract sum of an annual advertising contract between Kingworld Medicine and Ling Feng Advertising.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Asia Great had never provided Kingworld Medicine with the services stated in the invoices concerned.Meanwhile, co-defendant Chau is alleged to have dealt with a sum of about $180,000 in the bank account of Asia Great, knowing or having reasonable grounds to believe that it, in whole or in part, directly or indirectly represented proceeds of an indictable offence.Kingworld Medicine and Ling Feng Advertising rendered full assistance to the ICAC during its investigation into the case.
Nov 2024Mastermind and 12 others charged by ICAC in $52m dummy agents commissions fraud plead guilty in District CourtAn ICAC corruption investigation earlier revealed a dummy insurance agents’ scheme where individuals had conspired together to defraud two insurers of commissions totalling about $52 million by making false representation about the handling agents of 478 insurance policies and to launder crime proceeds. The mastermind, a former branch manager of an insurer, and 12 dummy insurance agents today (November 23) pleaded guilty at the District Court to their respective roles in the scheme.The instigator in the present case, Lo Yin-wa, 32, former branch manager of FWD Life Insurance Company (Bermuda) Limited (FWD), pleaded guilty to 20 charges – two of conspiracy to defraud, contrary to the Common Law; and 18 of conspiracy to deal with property known or believed to represent proceeds of an indictable offence (conspiracy to launder crime proceeds), contrary to section 25(1) of the Organized and Serious Crimes Ordinance and section 159A(1) of the Crimes Ordinance.Twelve co-defendants, aged between 24 and 61, are seven insurance agents of Lo Yin-wa’s team in FWD – Chan Ka-yu, Lam Hiu-tung, Lam Wai-kit, Wong Bryant, Woo Kin-leung, Zhou Yutian and Cheung Ho-cheung; the former unit manager of Sun Life Hong Kong Limited (Sun Life HK), Kwok Yun-fong, and her four downline agents Tang Ho-lun, To Wai-to, Wong Lin-yan and Leung Tsz-wing. They admitted various counts of conspiracy to defraud and conspiracy to launder crime proceeds.Judge Mr Josiah Lam Wai-kuen adjourned the case to December 21 for continuation of mitigation. To Wai-to, Wong Lin-yan, Chan Ka-yu, Lam Hiu-tung, Zhou Yutian and Cheung Ho-cheung were remanded in custody of the Correctional Services Department, while another seven defendants were granted bail.The ICAC investigation arose from a corruption complaint against dummy insurance agents. Enquiries revealed that between February 2016 and November 2020, Lo Yin-wa had recruited co-defendants in the case and others to join either Sun Life HK or FWD. Lo Yin-wa told some of the recruited persons that they were dummy insurance agents and were not required to source any clients after joining the insurers.The ICAC investigation revealed that Lo Yin-wa had conspired with other FWD insurance agents to falsely represent that the FWD insurance agents recruited by Lo Yin-wa were the handling agents of 272 insurance policy applications. In addition, Lo Yin-wa had conspired with Kwok Yun-fong and other Sun Life HK insurance agents to falsely represent that the Sun Life HK insurance agents recruited by Lo Yin-wa were the handling agents of 206 insurance policy applications.Sun Life HK and FWD, which had no knowledge of the scheme, approved the above 478 applications and released commissions, incentives, bonuses and allowances totalling over $22 million to Lo Yin-wa’s team, and over $29 million to Kwok Yun-fong’s team.The ICAC enquiries revealed that the above 478 insurance policy applications mostly involved high commission rate insurance products. In the end, most of the insurance policies concerned lapsed after subsequent premiums were not paid.The court also heard that Lo Yin-wa requested the dummy insurance agents to return most of the payments to her after receiving commissions and other payments from the insurers. Individuals involved in the case then laundered crime proceeds totalling about $47 million in relation to the scheme through 23 bank accounts, which in fact were controlled by Lo Yin-wa, to receive the commissions and other payments concerned.Lo Yin-wa’s husband and FWD insurance agent, Kwok Ho-leung, was also charged with two counts of conspiracy to defraud. The charges were left on file at the District Court.Four other co-defendants, former Sun Life HK insurance agents Mo Wing-han and Lo Nga-wing; and former FWD insurance agents Ngan Tsz-ting and Kong Tsz-ying, earlier pleaded not guilty to conspiracy to launder crime proceeds and conspiracy to defraud at the District Court. Their case was adjourned to March 20, 2025 for a pre-trial review and the trial is set to commence on May 12, 2025.FWD and Sun Life HK rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officers Nick Lai and Chase Wong. 20
Nov 2024Team leader of Three-Runway System Project charged by ICAC jailed for 17 weeks for accepting bribes from imported workersFollowing the receipt of corruption complaints alleging wage exploitation of imported workers, the ICAC conducted an investigation and revealed that a leader of a team of carpenters of the Three-Runway System Project (3RS Project) of the Hong Kong International Airport had accepted bribes totalling about $54,000 from 10 imported workers for assisting them to continue their employment. The team leader, charged by the Commission, received a jail term of 17 weeks after pleading guilty to bribery at the West Kowloon Magistrates’ Courts today (November 20).The ICAC 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. To enhance imported workers’ understanding of Hong Kong’s anti-corruption laws, the ICAC has arranged corruption prevention talks for imported workers within eight weeks of their arrival. Additionally, the ICAC will also make use of other channels to sustain the anti-graft education to imported workers.The team leader of carpenters, Chen Xianliang, 62, was an imported worker employed by Gammon Construction Limited (Gammon). He pleaded guilty to 10 counts of agent accepting an advantage, contrary to section 9(1)(a) of the Prevention of Bribery Ordinance.In sentencing, Acting Principal Magistrate Mr Cheng Lim-chi remarked that the offences in the present case were serious in nature. The court would not tolerate any illicit activity of its kind and that an immediate custodial sentence was inevitable.The court heard that in 2020, Gammon was awarded by the Airport Authority Hong Kong a contract of automated people mover and baggage handling system project of the 3RS Project and imported workers through the Labour Importation Scheme for Construction Sector of the Development Bureau. The defendant was an imported team leader employed by Gammon through the scheme. He was responsible for leading a team of imported carpenters under the supervision of a subcontractor of Gammon.The ICAC investigation revealed that 10 workers referred by the defendant to work in his team at a monthly salary of $37,800 arrived Hong Kong from the Mainland in late December 2023.After the arrival of the carpenters, the defendant solicited a bribe of $600 per working day from each of them. The carpenters believed that their employment by Gammon would not be continued if they had not paid bribes to the defendant. In the end, the defendant accepted bribes ranging from $4,800 to $5,400 from each carpenter, totalling about $54,000.Gammon prohibited its employees from soliciting or accepting any advantages from others for matters in relation to the affairs or business of the company.The Development Bureau and Gammon rendered full assistance to the ICAC during its investigation into the case.The prosecution was today represented by ICAC officer Fung Lee. 19
Nov 2024Insurance intermediary charged by ICAC gets seven months’ jail for conspiring with policyholders over insurance claims fraudAn insurance intermediary, charged by the ICAC, was today (November 19) sentenced to seven months’ imprisonment at the Eastern Magistrates’ Courts for 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 earlier convicted of four counts of conspiracy to defraud, contrary to the Common Law, after trial. The court had earlier ordered the defendant to compensate a sum of about $52,000 to the insurer.In sentencing, Magistrate Mr Tsang Chung-yiu reprimanded the defendant for his dishonesty, adding that the court had to mete out a custodial sentence to convey a proper message to the society that the fraudulent acts in the present case amounted to serious offences.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 Lalwani.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, Lalwani 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 policyholders concerned, Tam, 37, and Lam, 34, 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 Ivy Ho. 13
Nov 2024Works subcontractor charged by ICAC over $330,000 wage fraud and perversion over graft probeThe ICAC today (November 13) charged a works subcontractor and a worker for allegedly conspiring together to defraud a glass facade contractor of overpaid wages totalling over $330,000 by making false representations about workers’ attendance records. The subcontractor was also charged with perversion for allegedly instructing workers to falsely claim the latter’s attendance.Poon Tat-chun, 29, operator of Ocean Crown Enterprise Ltd (OCL); and Law Ka-ming, 29, then worker of OCL, jointly face one count of conspiracy to defraud, contrary to the Common Law. Poon further faces one count of doing an act tending and intended to pervert the course of public justice, contrary to the Common Law.The duo were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts on Friday (November 15) for mention. An application will be later lodged by the prosecution for transferring the case to the District Court for plea.At the material time, Poon was the operator of OCL engaged by a glass facade contractor to provide workers to conduct glass installation works at the construction site of a private residential estate on Lantau Island. OCL employed some 10 workers, including Law, to work at the construction site at a daily wage each ranged from $1,050 to $1,400.It is alleged that between February and April 2021, Poon and Law conspired with another OCL worker to overstate the number of working days of some workers and falsely represent to the contractor that the attendance records submitted by OCL were genuine to deceive the contractor into overpaying wages totalling over $330,000 to OCL.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Poon had allegedly instructed Law and other workers to make false representations about their attendance records, and requested the workers to return the overpaid wages to him each month.In addition, Poon allegedly perverted the course of public justice in the course of the ICAC investigation into the scheme. It is alleged that in late April 2022, Poon requested one of the OCL workers to pass a message to three other workers, asking them to falsely tell ICAC officers that they had signed the workers’ attendance records concerned, and to reply all questions asked by ICAC officers by saying “no idea”.ICAC enquiries revealed that the worker found Poon’s instruction improper, and did not follow the instruction which requested other workers to tell lies in the ICAC investigation.The glass facade contractor rendered full assistance to the ICAC during its investigation into the case. 13
Nov 2024Ex-general manager of pharmaceutical wholesaler among three charged by ICAC over $1.1m service fees fraud and money launderingA then general manager of a pharmaceutical wholesaler and his subordinate were charged by the ICAC yesterday (November 12) for making false representation about consultancy and other services provided by a secretarial services company operated by the subordinate to defraud the pharmaceutical wholesaler of service fees totalling over $1.1 million. Meanwhile, a business partner of the subordinate was charged with money laundering.Watson Yau Wei-ching, 54, then general manager of Kingworld Medicine Healthcare Limited (Kingworld Medicine); and Alen Yu Yuen-to, 43, then marketing officer of Kingworld Medicine, jointly face two counts of fraud, contrary to section 16A(1) of the Theft Ordinance. Yau further faces another count of fraud.Co-defendant Chau Pak-ho, 40, director cum shareholder of Asia Great Services Limited (Asia Great), faces one count of dealing with property known or believed to represent proceeds of an indictable offence (commonly known as money laundering), contrary to section 25(1) of the Organized and Serious Crimes Ordinance.The three defendants were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (November 14) for mention. The prosecution will later apply for transferring the case to the District Court for plea.Between February 2017 and September 2023, Kingworld Medicine was a distributor and wholesaler of pharmaceuticals and healthcare products in Hong Kong and the Mainland. Yau oversaw sales and marketing of Kingworld’s products, while Yu was his subordinate. Yu and Chau were also directors and shareholders of Asia Great which provided secretarial services to clients.Hong Kong Ling Feng Advertising Company Limited (Ling Feng Advertising) was a contractor of Kingworld Medicine responsible for promoting its products. Kingworld Medicine would pay the contract sum to Ling Feng Advertising in advance for deduction of the product promotion costs.The charge alleges that Yau and Yu had falsely represented to Kingworld Medicine that seven invoices issued by Asia Great were genuine, and with intent to defraud, induced Kingworld Medicine to pay Asia Great consultancy services fees totalling over $530,000. Yau, with intend to defraud, also allegedly induced Kingworld Medicine to pay Asia Great print and design services fees in a sum of $62,000 by similar means.It is also alleged that the duo had falsely represented to Ling Feng Advertising that six invoices issued by Asia Great were genuine, and with intent to defraud, induced Ling Feng Advertising to pay consultancy services fees totalling over $540,000 to Asia Great on behalf of Kingworld Medicine, and deduct an amount of over $580,000 from the contract sum of an annual advertising contract between Kingworld Medicine and Ling Feng Advertising.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Asia Great had never provided Kingworld Medicine with the services stated in the invoices concerned.Meanwhile, co-defendant Chau is alleged to have dealt with a sum of about $180,000 in the bank account of Asia Great, knowing or having reasonable grounds to believe that it, in whole or in part, directly or indirectly represented proceeds of an indictable offence.Kingworld Medicine and Ling Feng Advertising rendered full assistance to the ICAC during its investigation into the case.