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Nov 2024Yuen Long small house ‘Ding Rights’ cases: Two applicants charged by ICAC admit conspiracy to defraud Lands DepartmentThe ICAC had earlier charged 11 people, including the operator of a small house developer, a village representative and small house applicants, for allegedly conspiring to deceive the Lands Department into granting various building licenses for a small house estate development project in Yuen Long by transferring the “Ding Rights” concerned. Two of the small house applicants today (November 8) admitted their roles in the scam at the Tuen Mun Magistrates’ Courts.Small house applicants Choi Wai-sang, 63, and Jimmy Tang Kiu-chin, 74, each pleaded guilty to one count of conspiracy to defraud, contrary to the Common Law. Acting Principal Magistrate Mr Daniel Tang Siu-hung adjourned the case to November 29 for sentence, pending the duo’s background reports, and remanded them in the custody of the Correctional Services Department.Under the New Territories Small House Policy, every male indigenous inhabitant of the New Territories aged 18 or above may exercise his “Ding Right” once and apply to the Lands Department for building a small house within a recognised village of the New Territories for his own occupation. A “Ding Right” is not transferrable.Choi and Tang admitted that between February and June 2006, they each made an application to the Lands Department for building a small house in Shui Tsiu San Tsuen in Yuen Long for their own occupation. The duo claimed to the department that they were respectively the sole legal and registered owner of the lots of land concerned; and that they had never entered into any agreements with others to transfer or otherwise deal with their lots of land or relevant interests; and that they had no intention to sell their “Ding Rights” to other individuals or developers.Believing that the information stated in the applications was genuine, the Lands Department granted the duo building licenses.The ICAC investigation arose from a corruption complaint. Enquiries revealed that since November 1991, a number of individuals, including Choi and Tang, had applied for building small houses in Shui Tsiu San Tsuen. The small houses were subsequently sold to members of the public by a developer under the name of a private estate and each small house was sold at market price ranging from $9 to $13 million. The developer concerned received over $1,000 million for the sale of 115 small houses in the private estate.ICAC enquiries also revealed that since the 1990s, an indigenous inhabitant representative and other middlemen started the development of the estate project in Shui Tsiu San Tsuen by purchasing “Ding Rights” from indigenous inhabitants of Yuen Long. Choi and Tang had conspired with the middlemen to sell their “Ding Rights” at $100,000 each, totalling $200,000.Later in about March 2005, a developer entered into an agreement with the indigenous inhabitant representative and appointed the latter as its trustee to jointly develop the small house project. The indigenous inhabitant representative and the middlemen then continued to purchase more “Ding Rights” from indigenous inhabitants and arranged for them to apply for building licences to build small houses in Shui Tsiu San Tsuen.The Lands Department offered full assistance to the ICAC during its investigation into the cases. The prosecution was today represented by ICAC officer Astor Yu.Meanwhile, other individuals allegedly involved in the same scam, namely Edward Wong Kwong-wing, 75, operator of Wing Smart Construction Limited, and Ching Chan-ming, 67, indigenous inhabitant representative of Shui Tsiu San Tsuen, were earlier jointly charged by the ICAC in a separate case with one count of conspiracy to defraud. They pleaded not guilty to the charge in December 2023. The case is set for trial at the District Court on February 10, 2025.The remaining seven small house applicants charged by the ICAC in separate cases are Wong Kwun-sing, Chan Chi-ming, Chan Wing-kin, Leung Kam-yick, Lung Fok-ye, Yeung Kai-kwong and Lok Tin-lung, aged between 43 and 74. They did not enter plea when they appeared at the Tuen Mun Magistrates’ Courts today. The case of Wong Kwun-sing and Chan Chi-ming was adjourned to December 6 for mention, while the case of the remaining five defendants was adjourned to January 17 next year for plea. 05
Nov 2024Then listed company deputy general manager gains AUS$2.9m in investment opportunity, charged by ICAC with bribery over overseas property projectsA then deputy general manager of a listed company and his mother were charged by the ICAC yesterday (November 4) for allegedly conspiring with an Australian businessman to accept an investment opportunity from the latter for the then deputy general manager to show favour to the businessman in relation to the listed company’s investments in overseas property development projects.Ng Wai, 45, then deputy general manager of Beijing Capital Land Limited (BCL); and his mother Han Shang-min, 74, jointly face one count of conspiracy for an agent to accept advantage, contrary to section 9(1)(b) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance. The duo were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (November 6) for mention.BCL was listed on the Hong Kong Exchanges and Clearing Limited from 2003 to 2021. At the material time, Ng was the deputy general manager of BCL, as well as the general manager of BCL’s branch in Australia.Upon Ng’s recommendations, BCL made investments to various property development projects in Australia since 2014. Most of the projects were developed by companies associated with an Australian businessman.The charge alleges that between June 2014 and November 2021, Ng and his mother, Han, accepted from the Australian businessman an advantage – an investment opportunity – for Ng to show favour to the Australian businessman and his associated companies in relation to the business of BCL.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Ng invested AUS$6 million in the investment opportunity offered to him and received a repayment of about AUS$8.9 million, making a profit of about AUS$2.9 million out of the investment. Meanwhile, Han allegedly participated in the corrupt dealings and dealt with the payments concerned. 04
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.
Nov 2024Yuen Long small house ‘Ding Rights’ cases: Two applicants charged by ICAC admit conspiracy to defraud Lands DepartmentThe ICAC had earlier charged 11 people, including the operator of a small house developer, a village representative and small house applicants, for allegedly conspiring to deceive the Lands Department into granting various building licenses for a small house estate development project in Yuen Long by transferring the “Ding Rights” concerned. Two of the small house applicants today (November 8) admitted their roles in the scam at the Tuen Mun Magistrates’ Courts.Small house applicants Choi Wai-sang, 63, and Jimmy Tang Kiu-chin, 74, each pleaded guilty to one count of conspiracy to defraud, contrary to the Common Law. Acting Principal Magistrate Mr Daniel Tang Siu-hung adjourned the case to November 29 for sentence, pending the duo’s background reports, and remanded them in the custody of the Correctional Services Department.Under the New Territories Small House Policy, every male indigenous inhabitant of the New Territories aged 18 or above may exercise his “Ding Right” once and apply to the Lands Department for building a small house within a recognised village of the New Territories for his own occupation. A “Ding Right” is not transferrable.Choi and Tang admitted that between February and June 2006, they each made an application to the Lands Department for building a small house in Shui Tsiu San Tsuen in Yuen Long for their own occupation. The duo claimed to the department that they were respectively the sole legal and registered owner of the lots of land concerned; and that they had never entered into any agreements with others to transfer or otherwise deal with their lots of land or relevant interests; and that they had no intention to sell their “Ding Rights” to other individuals or developers.Believing that the information stated in the applications was genuine, the Lands Department granted the duo building licenses.The ICAC investigation arose from a corruption complaint. Enquiries revealed that since November 1991, a number of individuals, including Choi and Tang, had applied for building small houses in Shui Tsiu San Tsuen. The small houses were subsequently sold to members of the public by a developer under the name of a private estate and each small house was sold at market price ranging from $9 to $13 million. The developer concerned received over $1,000 million for the sale of 115 small houses in the private estate.ICAC enquiries also revealed that since the 1990s, an indigenous inhabitant representative and other middlemen started the development of the estate project in Shui Tsiu San Tsuen by purchasing “Ding Rights” from indigenous inhabitants of Yuen Long. Choi and Tang had conspired with the middlemen to sell their “Ding Rights” at $100,000 each, totalling $200,000.Later in about March 2005, a developer entered into an agreement with the indigenous inhabitant representative and appointed the latter as its trustee to jointly develop the small house project. The indigenous inhabitant representative and the middlemen then continued to purchase more “Ding Rights” from indigenous inhabitants and arranged for them to apply for building licences to build small houses in Shui Tsiu San Tsuen.The Lands Department offered full assistance to the ICAC during its investigation into the cases. The prosecution was today represented by ICAC officer Astor Yu.Meanwhile, other individuals allegedly involved in the same scam, namely Edward Wong Kwong-wing, 75, operator of Wing Smart Construction Limited, and Ching Chan-ming, 67, indigenous inhabitant representative of Shui Tsiu San Tsuen, were earlier jointly charged by the ICAC in a separate case with one count of conspiracy to defraud. They pleaded not guilty to the charge in December 2023. The case is set for trial at the District Court on February 10, 2025.The remaining seven small house applicants charged by the ICAC in separate cases are Wong Kwun-sing, Chan Chi-ming, Chan Wing-kin, Leung Kam-yick, Lung Fok-ye, Yeung Kai-kwong and Lok Tin-lung, aged between 43 and 74. They did not enter plea when they appeared at the Tuen Mun Magistrates’ Courts today. The case of Wong Kwun-sing and Chan Chi-ming was adjourned to December 6 for mention, while the case of the remaining five defendants was adjourned to January 17 next year for plea. 05
Nov 2024Then listed company deputy general manager gains AUS$2.9m in investment opportunity, charged by ICAC with bribery over overseas property projectsA then deputy general manager of a listed company and his mother were charged by the ICAC yesterday (November 4) for allegedly conspiring with an Australian businessman to accept an investment opportunity from the latter for the then deputy general manager to show favour to the businessman in relation to the listed company’s investments in overseas property development projects.Ng Wai, 45, then deputy general manager of Beijing Capital Land Limited (BCL); and his mother Han Shang-min, 74, jointly face one count of conspiracy for an agent to accept advantage, contrary to section 9(1)(b) of the Prevention of Bribery Ordinance and section 159A of the Crimes Ordinance. The duo were released on ICAC bail, pending their appearance at the Eastern Magistrates’ Courts tomorrow (November 6) for mention.BCL was listed on the Hong Kong Exchanges and Clearing Limited from 2003 to 2021. At the material time, Ng was the deputy general manager of BCL, as well as the general manager of BCL’s branch in Australia.Upon Ng’s recommendations, BCL made investments to various property development projects in Australia since 2014. Most of the projects were developed by companies associated with an Australian businessman.The charge alleges that between June 2014 and November 2021, Ng and his mother, Han, accepted from the Australian businessman an advantage – an investment opportunity – for Ng to show favour to the Australian businessman and his associated companies in relation to the business of BCL.The ICAC investigation arose from a corruption complaint. Enquiries revealed that Ng invested AUS$6 million in the investment opportunity offered to him and received a repayment of about AUS$8.9 million, making a profit of about AUS$2.9 million out of the investment. Meanwhile, Han allegedly participated in the corrupt dealings and dealt with the payments concerned. 04
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.