Superintendent of Police charged with fraud over $6m housing and mortgage loans
2021-5-3
The ICAC today (May 3) charged a Superintendent of Police with deceiving the Government and a bank into granting him housing and mortgage loans totalling about $6 million for purchasing a flat by concealing that it was let out to others and falsely representing that it was used by his family.
Lung Siu-chuen, 55, faces two counts of fraud, contrary to Section 16A of the Theft Ordinance.
The defendant will appear in the Eastern Magistrates’ Courts on Wednesday (May 5) for the case to be transferred to the District Court for plea.
The defendant joined the Police Force in 1986 and was promoted to the rank of Superintendent in May 2019. He was entitled to apply for a government housing loan under the Housing Loan Scheme (the Scheme).
The live-in requirement under the Scheme is waived if an application is submitted within 10 years of his statutory age of retirement. But the property acquired with the aid of the Scheme could only be occupied by the applicant and/or the applicant’s family. Letting and subletting of the property is prohibited.
In September 2016, the defendant applied for a loan with the Treasury under the Scheme and made a mortgage loan application with The Hongkong and Shanghai Banking Corporation Limited (HSBC) for 60 per cent of the value of the property. He was due to retire within 10 years when the applications were made.
At that time, the ceiling of the mortgage loan in respect of residential property purchased for self-use and investment was respectively fixed at 60 per cent and 50 per cent of the value of the property.
The ICAC investigation arose from a corruption complaint referred by the Treasury. Subsequent enquiries revealed the alleged offences which took place between September 29 and November 30, 2016.
One of the offences alleges that the defendant had falsely represented in the application for the Scheme that a vacant flat in Discovery Bay would be delivered; and failed to report to the Director of Accounting Services of the Treasury that he had signed a tenancy agreement with the then tenants of the flat, which might affect his entitlement to civil service housing benefits.
Another charge alleges that the defendant had falsely represented in a mortgage loan application made with HSBC that the aforesaid flat would be used by his parents and the vacant flat would be obtained upon completion of transaction; and failed to inform HSBC that he had signed the abovementioned tenancy agreement, which might render information given under the relevant application form incorrect or untrue before the drawdown of the loan.
It is alleged that the defendant, with intent to defraud, induced the Director of Accounting Services of the Treasury and HSBC to grant him respectively a housing loan of about $2.1 million and a mortgage loan of $3.9 million.
The Police Force, the Treasury and HSBC have rendered full assistance to the ICAC during its investigation into the case.
The defendant has been released on ICAC bail, pending his court appearance on Wednesday.
Lung Siu-chuen, 55, faces two counts of fraud, contrary to Section 16A of the Theft Ordinance.
The defendant will appear in the Eastern Magistrates’ Courts on Wednesday (May 5) for the case to be transferred to the District Court for plea.
The defendant joined the Police Force in 1986 and was promoted to the rank of Superintendent in May 2019. He was entitled to apply for a government housing loan under the Housing Loan Scheme (the Scheme).
The live-in requirement under the Scheme is waived if an application is submitted within 10 years of his statutory age of retirement. But the property acquired with the aid of the Scheme could only be occupied by the applicant and/or the applicant’s family. Letting and subletting of the property is prohibited.
In September 2016, the defendant applied for a loan with the Treasury under the Scheme and made a mortgage loan application with The Hongkong and Shanghai Banking Corporation Limited (HSBC) for 60 per cent of the value of the property. He was due to retire within 10 years when the applications were made.
At that time, the ceiling of the mortgage loan in respect of residential property purchased for self-use and investment was respectively fixed at 60 per cent and 50 per cent of the value of the property.
The ICAC investigation arose from a corruption complaint referred by the Treasury. Subsequent enquiries revealed the alleged offences which took place between September 29 and November 30, 2016.
One of the offences alleges that the defendant had falsely represented in the application for the Scheme that a vacant flat in Discovery Bay would be delivered; and failed to report to the Director of Accounting Services of the Treasury that he had signed a tenancy agreement with the then tenants of the flat, which might affect his entitlement to civil service housing benefits.
Another charge alleges that the defendant had falsely represented in a mortgage loan application made with HSBC that the aforesaid flat would be used by his parents and the vacant flat would be obtained upon completion of transaction; and failed to inform HSBC that he had signed the abovementioned tenancy agreement, which might render information given under the relevant application form incorrect or untrue before the drawdown of the loan.
It is alleged that the defendant, with intent to defraud, induced the Director of Accounting Services of the Treasury and HSBC to grant him respectively a housing loan of about $2.1 million and a mortgage loan of $3.9 million.
The Police Force, the Treasury and HSBC have rendered full assistance to the ICAC during its investigation into the case.
The defendant has been released on ICAC bail, pending his court appearance on Wednesday.