Regional director of insurance firm jailed for $30,000 commissions fraud

2017-9-12


A regional director of an insurance company (Company A), charged by the ICAC, was today (September 12) sentenced to three months’ imprisonment at the Eastern Magistracy after being convicted of defrauding the company of about $30,000 in commissions by falsely representing that her husband was the handling agent of two insurance policies.

The defendant, 55, was found guilty of two counts of fraud, contrary to Section 16A of the Theft Ordinance.

In passing the sentence, Magistrate Mr Kenneth Chan Ping-chau said a custodial sentence was imposed on the defendant as she had the intention of defrauding the insurance company to seek personal gains.

Upon an application from the defendant, the magistrate granted her cash bail of $100,000 pending her appeal.

The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.

The court heard that at the material time, the defendant was a regional director of Company A. Her husband was a down-line agent working together with her in the same team.

Between November and December 2011, the defendant met with two female clients and explained to them the contents and features of two insurance policies respectively.

In the presence of the defendant, the clients signed on their respective application forms for taking out insurance policies with Company A.

Afterwards, Company A received the two application forms on which the defendant’s husband was named as the handling agent. The application forms were endorsed by the defendant as up-line manager of her husband, the court heard.

Believing that the information on the application forms was genuine, Company A approved the applications.

As a result, Company A released commissions of about $23,000 in total to the defendant’s husband, and overriding commissions totalling over $6,200 to the defendant, the court was told.

Company A had rendered full assistance to the ICAC during its investigation.

The prosecution was today represented by prosecuting counsel Cannise Chan, assisted by ICAC officer Jessie Fu.
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