Sales manager of property agency charged with accepting $130,000 illegal commissions from subordinate
2021-8-18
A sales manager of a property agency was charged by the ICAC yesterday (August 17) with accepting illegal commissions totalling about $130,000 from his subordinate for assisting the latter to procure three property transactions involving a total transaction price amounted to over $61.5 million.
The ICAC investigation arose from a corruption complaint. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised laying charges against the defendant.
Chung Ka-keung, 53, senior sales manager of Midland Realty (Commercial) Limited (Midland Realty (Commercial)), faces three counts of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance. He was released on ICAC bail, pending his appearance in the Kowloon City Magistrates’ Courts tomorrow (August 19) for plea.
At the material time, the defendant headed a branch of Midland Realty (Commercial) in Tsim Sha Tsui, and a senior account manager was among his subordinates. A company which engaged in property investment business was one of the defendant’s clients.
For a property transaction procured by a property agent, Midland Realty (Commercial) would charge both the vendor and the purchaser one per cent of the transaction price as agency commission, the amount of which would be taken into account to calculate monthly sales commissions of the property agent.
As the head of a branch, the defendant would earn an overriding commission for property transactions procured by his subordinates.
The charges allege that between July 14 and August 31, 2017, the defendant, without lawful authority or reasonable excuse, accepted three illegal commissions each ranging from $9,800 to $63,000, totalling about $130,000, from the aforesaid senior account manager as an inducement to or reward for assisting the latter in procuring property transactions for the abovementioned client.
It is alleged that the property transactions concerned involved three commercial properties in Shau Kei Wan and Wan Chai with an individual transaction price ranged from $9.2 million to over $27.3 million. The total transaction price of the three properties amounted to over $61.5 million.
Midland Realty (Commercial) has rendered full assistance to the ICAC during its investigation into the case.
The ICAC investigation arose from a corruption complaint. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised laying charges against the defendant.
Chung Ka-keung, 53, senior sales manager of Midland Realty (Commercial) Limited (Midland Realty (Commercial)), faces three counts of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance. He was released on ICAC bail, pending his appearance in the Kowloon City Magistrates’ Courts tomorrow (August 19) for plea.
At the material time, the defendant headed a branch of Midland Realty (Commercial) in Tsim Sha Tsui, and a senior account manager was among his subordinates. A company which engaged in property investment business was one of the defendant’s clients.
For a property transaction procured by a property agent, Midland Realty (Commercial) would charge both the vendor and the purchaser one per cent of the transaction price as agency commission, the amount of which would be taken into account to calculate monthly sales commissions of the property agent.
As the head of a branch, the defendant would earn an overriding commission for property transactions procured by his subordinates.
The charges allege that between July 14 and August 31, 2017, the defendant, without lawful authority or reasonable excuse, accepted three illegal commissions each ranging from $9,800 to $63,000, totalling about $130,000, from the aforesaid senior account manager as an inducement to or reward for assisting the latter in procuring property transactions for the abovementioned client.
It is alleged that the property transactions concerned involved three commercial properties in Shau Kei Wan and Wan Chai with an individual transaction price ranged from $9.2 million to over $27.3 million. The total transaction price of the three properties amounted to over $61.5 million.
Midland Realty (Commercial) has rendered full assistance to the ICAC during its investigation into the case.