Ex-bank staff jailed for deceiving mortgage referral fees
2012-12-20
A former employee of a bank, charged by the ICAC, was today (Thursday) sentenced to two months’ imprisonment at Kowloon City Magistracy for using false application forms to deceive mortgage referral fees totalling over $15,700 from the bank.
Kwan Ka-wai, 31, a senior customer services officer formerly employed by Bank of China (Hong Kong) Limited (BOCHK), was also ordered by Deputy Magistrate Miss Veronica Heung Shuk-han to pay over $15,700 as restitution to BOCHK.
The deputy magistrate said the offences committed by the defendant constituted a serious breach of trust, warranting a custodial sentence. The defendant, however, could not be spared from the jail term in view of no exceptional circumstances involved in the case.
The defendant earlier pleaded guilty to three charges of agent using documents with intent to deceive his principal, contrary to Section 9(3) of the Prevention of Bribery Ordinance.
The court heard that at the material times, BOCHK ran a mortgage loan referral programme. Under the programme, referral fees in the amount of a certain percentage of the mortgage loans would be given to designated estate agencies which successfully refer red business to the bank.
Being members of the Hong Kong Real Estate Agencies General Association (REAGA), the designated estate agencies could claim referral fees from BOCHK.
Amongst those designated estate agencies was Fu Tong Property Agency Limited (Fu Tong), which operated a smart phone application for any person to refer potential mortgage loan applications to it and earn referral commissions in return.
The court heard that the defendant handled three mortgage loan applications between December 2010 and March 2011.
With intent to deceive BOCHK, the defendant falsely stated that the borrowers as stated in the applications were referred to the bank by a member of REAGA. In fact, these borrowers were all walk-in applicants handled by the defendant.
Believing that the contents of the applications were true, BOCHK granted referral fees totalling over $15,700 to REAGA, in which about $15,000 was then given to Fu Tong.
The defendant had used the smart phone application to refer the loan applications to Fu Tong and gained $1,886 referral commissions, the court was told.
BOCHK had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Lisa Yip, assisted by ICAC officer Angus Wong.
Kwan Ka-wai, 31, a senior customer services officer formerly employed by Bank of China (Hong Kong) Limited (BOCHK), was also ordered by Deputy Magistrate Miss Veronica Heung Shuk-han to pay over $15,700 as restitution to BOCHK.
The deputy magistrate said the offences committed by the defendant constituted a serious breach of trust, warranting a custodial sentence. The defendant, however, could not be spared from the jail term in view of no exceptional circumstances involved in the case.
The defendant earlier pleaded guilty to three charges of agent using documents with intent to deceive his principal, contrary to Section 9(3) of the Prevention of Bribery Ordinance.
The court heard that at the material times, BOCHK ran a mortgage loan referral programme. Under the programme, referral fees in the amount of a certain percentage of the mortgage loans would be given to designated estate agencies which successfully refer red business to the bank.
Being members of the Hong Kong Real Estate Agencies General Association (REAGA), the designated estate agencies could claim referral fees from BOCHK.
Amongst those designated estate agencies was Fu Tong Property Agency Limited (Fu Tong), which operated a smart phone application for any person to refer potential mortgage loan applications to it and earn referral commissions in return.
The court heard that the defendant handled three mortgage loan applications between December 2010 and March 2011.
With intent to deceive BOCHK, the defendant falsely stated that the borrowers as stated in the applications were referred to the bank by a member of REAGA. In fact, these borrowers were all walk-in applicants handled by the defendant.
Believing that the contents of the applications were true, BOCHK granted referral fees totalling over $15,700 to REAGA, in which about $15,000 was then given to Fu Tong.
The defendant had used the smart phone application to refer the loan applications to Fu Tong and gained $1,886 referral commissions, the court was told.
BOCHK had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Lisa Yip, assisted by ICAC officer Angus Wong.