A director of a property agency, charged by the ICAC, was today (Thursday) sentenced to one year’s imprisonment at the District Court for conspiring with others to defraud the developer of a residential estate in Homantin of commissions totalling about $460,000.

Lau Hin-shing, 42, a director of Kingswood Property Agency Limited (Kingswood), was earlier found guilty of one count of conspiracy to defraud.

The case originated from a corruption complaint. Subsequent ICAC enquiries revealed the fraud offence.

The court heard that Parc Palais in Homantin, a residential estate jointly developed by New World Development Company Limited (New World) and four other companies, was opened for sale in late 2003.

The developers offered 1.25 per cent of the purchase price of each flat to each property agent who successfully secured a transaction. However, employees of the developers were not entitled to any commissions.

The court heard that four purchasers approached the sales office of New World to purchase five flats of Parc Palais in the total amount of about $37 million.

Two salespersons of New World proposed to the defendant that his name should be stated as the “referral agent” on the documents in order to claim commissions, despite that the purchasers were not introduced by him.

The salespersons further proposed that the defendant should remit portions of the commissions to them. The defendant agreed to the plan.

Between late 2003 and June 2004, the defendant was falsely represented as the “referral agent” of five transactions of units at Parc Palais.

As a result of the false representations, New World paid Kingswood about $460,000 as commissions, the court was told.

The prosecution was today represented by prosecuting counsel Sabrina See, assisted by ICAC officer Howard Wong.