ICAC smashes HA loan fraud syndicate
2003-12-19
The ICAC has smashed a syndicate which allegedly arranged for its members to fraudulently obtain loans from the Hong Kong Housing Authority (HA) by submitting false supporting documents and inflating the prices of the properties concerned.
ICAC inquiries revealed that the fraudulent scheme was facilitated by the corrupt assistance of employees of property agencies, insurance agents and bank employees.
Fifty persons, including seven property agents, one insurance agent and a solicitor's clerk were arrested during the past two days in an operation code named " Altair ".
The remaining 41 arrestees were individuals who had allegedly made fraudulent applications for HA loans, or vendors of properties which were sold to the loan applicants at prices that were allegedly inflated at the request of the syndicate for obtaining l arger mortgage loans from banks.
A bank employee was interviewed in relation to the investigation.
The ICAC earlier received a corruption complaint, alleging that a syndicate had conspired with other persons to offer advantages to bank officers, insurance and property agents for their assistance in obtaining HA loans by deception.
The loans, granted by the HA under the Home Purchase Loan Scheme (HPLS), require applicants to provide supporting documents such as employment records, salary and bank documents.
Investigation revealed that the syndicate, allegedly headed by one of the arrested property agents, was suspected to have recruited a number of persons to apply for HPLS.
In order to fulfill HA requirements, the alleged syndicate head was suspected to have conspired with other persons to forge employment and salary records for the applicants to submit to HA.
He was alleged to have offered bribes to employees of insurance companies for their assistance in fabricating Mandatory Provident Fund documents as employment records.
It was also suspected that the alleged syndicate head had offered advantages to a number of property agents for identifying relevant properties for the fraudulent loan applications. With the alleged corrupt assistance from the property agents, syndicate members purchased the properties concerned at prices believed to have been inflated by 20 to 50 per cent.
Inquiries also alleged that bank officers were bribed for their assistance in granting mortgage loans for properties at inflated prices.
The extra loans obtained through such fraudulent applications were shared amongst syndicate members, the insurance and property agents concerned. It was revealed that the applicants subsequently failed to make repayments for the HPLS and mortgage loans.
HA has rendered full co-operation and assistance to the ICAC's investigation.
The arrestees have been released on ICAC bail, pending further inquiries.
ICAC inquiries revealed that the fraudulent scheme was facilitated by the corrupt assistance of employees of property agencies, insurance agents and bank employees.
Fifty persons, including seven property agents, one insurance agent and a solicitor's clerk were arrested during the past two days in an operation code named " Altair ".
The remaining 41 arrestees were individuals who had allegedly made fraudulent applications for HA loans, or vendors of properties which were sold to the loan applicants at prices that were allegedly inflated at the request of the syndicate for obtaining l arger mortgage loans from banks.
A bank employee was interviewed in relation to the investigation.
The ICAC earlier received a corruption complaint, alleging that a syndicate had conspired with other persons to offer advantages to bank officers, insurance and property agents for their assistance in obtaining HA loans by deception.
The loans, granted by the HA under the Home Purchase Loan Scheme (HPLS), require applicants to provide supporting documents such as employment records, salary and bank documents.
Investigation revealed that the syndicate, allegedly headed by one of the arrested property agents, was suspected to have recruited a number of persons to apply for HPLS.
In order to fulfill HA requirements, the alleged syndicate head was suspected to have conspired with other persons to forge employment and salary records for the applicants to submit to HA.
He was alleged to have offered bribes to employees of insurance companies for their assistance in fabricating Mandatory Provident Fund documents as employment records.
It was also suspected that the alleged syndicate head had offered advantages to a number of property agents for identifying relevant properties for the fraudulent loan applications. With the alleged corrupt assistance from the property agents, syndicate members purchased the properties concerned at prices believed to have been inflated by 20 to 50 per cent.
Inquiries also alleged that bank officers were bribed for their assistance in granting mortgage loans for properties at inflated prices.
The extra loans obtained through such fraudulent applications were shared amongst syndicate members, the insurance and property agents concerned. It was revealed that the applicants subsequently failed to make repayments for the HPLS and mortgage loans.
HA has rendered full co-operation and assistance to the ICAC's investigation.
The arrestees have been released on ICAC bail, pending further inquiries.