Case Studies

Our case studies contain analysis and discussion points for users to better understand the legal provisions. They also provide suggestions on how to prevent corruption, fraud and malpractices.

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All Areas of Concern


CS079
Fee splitting with non-professionals
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Dr T is a plastic surgeon in private practice.   He always goes to a fitness center  for  exercise  and  gets  to  know  the  proprietor  of  a  beauty  parlour, Joanne.   On one occasion, Joanne suggested to Dr T a partnership.   She could recommend Dr T to her female customers who were perpetually dissatisfied with their looks and sought minor surgery.   Dr T agreed to share part  of  the  operation  fees  with  Joanne  for  each  successful  referral.    He thought that his income would not be seriously affected as he could charge patients higher operation fees.

Dr P, an obstetrician of a renowned private hospital, is in charge of the fertility centre there.   Clientele includes wives of tycoons and famous actresses.   One day, Dr P received a telephone call from her best friend Amy who was a columnist for a tabloid.   She told Dr P that she was writing a feature article on infertility and wanted to know the success rate of her clinic. She even made enquires about a few celebrities rumoured to be infertile and their prognosis.   She assured Dr P that she would not disclose the source of information.   With the help of Dr P, Amy completed the feature article which eventually aroused much public interest.   As a token of thanks, she treated Dr P to a lavish meal in a famous restaurant.

Mr Fong, a senior merchandiser of a herbal tea manufacturing company, was in desperate need of money.  He tried to solicit loans from a mainland herbal supplier with a carrot-and-stick approach.  The supplier did not agree to his request and reported the matter to Mr Fong’s company…

 

A herbal tea manufacturing company sourced herbs and other materials from various mainland suppliers. Mr Fong, a senior merchandiser of the company, was responsible for purchasing herbal materials and inventory control.

 

Mr Fong had been experiencing financial difficulties and, as he was in desperate need of money, sent several text messages to a mainland herbal supplier to solicit a loan of RMB10,000. Mr Fong suggested to the supplier that more purchase orders would be placed if the supplier deposited the money into his wife’s bank account in Hong Kong. The supplier made no response to the request. Shortly after, Mr Fong sent another text message to the supplier, asking for another loan of RMB20,000 and threatened to cut the purchase orders if it was not granted. The supplier did not agree to his request, as it amounted to solicitation of bribes. The supplier subsequently reported the matter to the management of the herbal tea manufacturer. In view of the severity of the matter and having no tolerance for solicitation of bribes by its staff, the management immediately reported the case to the ICAC.

 

Subsequent enquiries revealed that Mr Fong had inflated the expenses incurred in his business trips and furnished false receipts to deceive the manufacturer about overstated business trip allowances.

 

The evidence was substantial and Mr Fong was charged with bribery under Section 9 of the PBO and for using false receipts to intentionally deceive his employer with a view to claiming more business trip allowances, contrary to Section 9(3) of the PBO.

Company A was a food supplier of Company B in Macao.  It was found that Company A supplied a batch of substandard food.  However, the Purchasing Manager of Company B Mr Cheung still acknowledged receipt of it because Company A agreed to pay him a sum of money for accepting this substandard product…

Company A supplied food to Company B in Macao under a contract between both parties. Mr Cheung was the Purchasing Manager of Company B.

 

Company A supplied Company B with a batch of food which was unfit for sale owing to its poor quality. After checking the food, Mr Cheung discovered that it was, in fact, substandard. Instead of returning the food to Company A, he acknowledged receipt of it — at the request of Company A. Company A agreed to pay Mr Cheung a sum of money for accepting this substandard product. Following a series of complaints from customers regarding the food quality, the entire batch of food had to be disposed of, with Company B having to bear a huge financial loss.


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