ICAC charges property agent with $4.9m mortgage loan fraud
2021-10-27
The ICAC yesterday (October 26) charged a property agent with defrauding a bank, the Hong Kong Mortgage Corporation Limited (HKMC) and the HKMC Insurance Limited (HKMCI) of a mortgage loan of about $4.9 million by making false representations that a residential property was for self-use.
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 charging the property agent, Chiu Ka-wai, 37, with three counts of fraud, contrary to Section 16A(1) of the Theft Ordinance.
The defendant was released on ICAC bail, pending his appearance in the Eastern Magistrates’ Courts tomorrow (October 28) for the case to be transferred to the District Court for plea.
Banks in Hong Kong are required to comply with the guideline of the Hong Kong Monetary Authority on loan-to-value ratio requirement when granting a property mortgage loan.
Under the Mortgage Insurance Programme (MIP) launched by the HKMC in 1999, participating banks can provide a maximum 80 per cent loan-to-value ratio to a self-occupancy residential property valued at $6 million and below. Since May 2018, the MIP has been carried out by HKMCI, a subsidiary of HKMC. The Hongkong and Shanghai Banking Corporation Limited (HSBC) is a participating bank of the programme.
On January 3, 2016, the defendant signed a provisional agreement for purchasing a residential property at $6 million and applied for a mortgage loan under the MIP with HSBC on January 7, 2016.
One of the charges alleges that between January 7 and April 20, 2016, the defendant falsely represented to HSBC and the HKMC that the aforesaid property was for self-occupancy, and with intent to defraud, induced HSBC and the HKMC to grant a mortgage loan of about $4.9 million in relation to the property to him, which resulted in benefit to him or in prejudice to HSBC and the HKMC.
The two remaining charges allege that on June 13, 2017 and February 7, 2020, the defendant falsely represented to HSBC, the HKMC and the HKMCI that the property was for self-occupancy, and with intent to defraud, induced HSBC, the HKMC and the HKMCI to maintain the mortgage loan granted to him, which resulted in benefit to him or in prejudice to HSBC, the HKMC and the HKMCI.
HSBC, the HKMC and the HKMCI have 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 charging the property agent, Chiu Ka-wai, 37, with three counts of fraud, contrary to Section 16A(1) of the Theft Ordinance.
The defendant was released on ICAC bail, pending his appearance in the Eastern Magistrates’ Courts tomorrow (October 28) for the case to be transferred to the District Court for plea.
Banks in Hong Kong are required to comply with the guideline of the Hong Kong Monetary Authority on loan-to-value ratio requirement when granting a property mortgage loan.
Under the Mortgage Insurance Programme (MIP) launched by the HKMC in 1999, participating banks can provide a maximum 80 per cent loan-to-value ratio to a self-occupancy residential property valued at $6 million and below. Since May 2018, the MIP has been carried out by HKMCI, a subsidiary of HKMC. The Hongkong and Shanghai Banking Corporation Limited (HSBC) is a participating bank of the programme.
On January 3, 2016, the defendant signed a provisional agreement for purchasing a residential property at $6 million and applied for a mortgage loan under the MIP with HSBC on January 7, 2016.
One of the charges alleges that between January 7 and April 20, 2016, the defendant falsely represented to HSBC and the HKMC that the aforesaid property was for self-occupancy, and with intent to defraud, induced HSBC and the HKMC to grant a mortgage loan of about $4.9 million in relation to the property to him, which resulted in benefit to him or in prejudice to HSBC and the HKMC.
The two remaining charges allege that on June 13, 2017 and February 7, 2020, the defendant falsely represented to HSBC, the HKMC and the HKMCI that the property was for self-occupancy, and with intent to defraud, induced HSBC, the HKMC and the HKMCI to maintain the mortgage loan granted to him, which resulted in benefit to him or in prejudice to HSBC, the HKMC and the HKMCI.
HSBC, the HKMC and the HKMCI have rendered full assistance to the ICAC during its investigation into the case.