Duo charged with fraud over $130,000 insurance commissions
2021-3-9
The ICAC today (March 9) charged a manager of an insurance company and a down-line agent with fraud for allegedly deceiving the company into paying them commissions totalling over $130,000 by falsely representing that the down-line agent had handled three insurance policies.
Tong Chi-chung, senior unit manager of AIA International Limited (AIA); and Hon Sze-lai, financial planner of AIA and Tong’s down-line agent, both 43, jointly face three counts of fraud, contrary to Section 16A(1) of the Theft Ordinance.
The defendants will appear at the Eastern Magistrates’ Courts on Thursday (March 11) for plea.
The case arose from an investigation into a corruption complaint. Enquiries revealed the above alleged offences which took place between November 2018 and April 2019.
AIA is an insurance company. When an insurance agent of AIA sells a product to a client, he/she is required to personally meet the client and complete an insurance application form with information provided by the client. The insurance agent concerned, who would be named the handling agent, and his/her supervisor are entitled to commissions. An insurance agent who is not engaged in selling a product is not allowed to be named the handling agent.
At the material time, Tong was a senior unit manager of AIA. He was entitled to overriding commissions from insurance policies procured by his down-line agents, including Hon, who was a financial planner of AIA.
The charges allege that Tong and Hon falsely represented to AIA that three insurance policies taken out by three clients were handled by Hon, with intent to defraud, induced AIA to pay a total of over $30,000 to Tong and $100,000 in total to Hon as their respective commissions in connection with those insurance policies, which resulted in benefit to the duo or in prejudice to AIA.
AIA has rendered full assistance to the ICAC during its investigation into the case.
The defendants have been released on ICAC bail, pending their court appearance on Thursday.
Tong Chi-chung, senior unit manager of AIA International Limited (AIA); and Hon Sze-lai, financial planner of AIA and Tong’s down-line agent, both 43, jointly face three counts of fraud, contrary to Section 16A(1) of the Theft Ordinance.
The defendants will appear at the Eastern Magistrates’ Courts on Thursday (March 11) for plea.
The case arose from an investigation into a corruption complaint. Enquiries revealed the above alleged offences which took place between November 2018 and April 2019.
AIA is an insurance company. When an insurance agent of AIA sells a product to a client, he/she is required to personally meet the client and complete an insurance application form with information provided by the client. The insurance agent concerned, who would be named the handling agent, and his/her supervisor are entitled to commissions. An insurance agent who is not engaged in selling a product is not allowed to be named the handling agent.
At the material time, Tong was a senior unit manager of AIA. He was entitled to overriding commissions from insurance policies procured by his down-line agents, including Hon, who was a financial planner of AIA.
The charges allege that Tong and Hon falsely represented to AIA that three insurance policies taken out by three clients were handled by Hon, with intent to defraud, induced AIA to pay a total of over $30,000 to Tong and $100,000 in total to Hon as their respective commissions in connection with those insurance policies, which resulted in benefit to the duo or in prejudice to AIA.
AIA has rendered full assistance to the ICAC during its investigation into the case.
The defendants have been released on ICAC bail, pending their court appearance on Thursday.