Property agent charged by ICAC jailed for accepting $118,000 bribes from subordinate
2021-11-19
A property agent, charged by the ICAC, was sentenced to four months’ imprisonment at the Kowloon City Magistrates’ Courts today (November 19) for accepting bribes totalling $118,000 from a subordinate for assisting the latter in procuring two property transactions which amounted to over $52.3 million.
Chung Ka-keung, 54, senior sales manager of Midland Realty (Commercial) Limited (Midland Realty), earlier pleaded guilty to two counts of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO).
In sentencing, Deputy Magistrate Mr Wong Tsz-ho said he took a starting point of nine months’ imprisonment and reduced the defendant’s jail term to four months after taking into account his guilty plea and willingness to make a repayment to Midland Realty.
The court heard that at the material time, Chung headed a branch of Midland Realty in Tsim Sha Tsui. His subordinates included a senior account manager, Ken Koo Chun-fai.
For each property transaction procured by a property agent, Midland Realty generally would charge both the vendor and the purchaser one per cent of the transaction price as agency commission, and the amount would be taken into account in calculating the monthly sales commissions of the property agent. As the head of a branch, Chung would also earn an overriding commission for property transactions procured by his subordinates.
The court heard that in December 2016, Chung instructed his subordinates to source commercial properties for a client of himself.
In late February 2017, upon the recommendation of Chung and Koo, the client purchased two commercial properties in Shau Kei Wan at respectively $25 million and over $27.3 million, totalling over $52.3 million.
Midland Realty subsequently paid sales commissions totalling over $280,000 and overriding commissions totalling about $150,000 respectively to Koo and Chung in connection with the two property transactions.
Upon Chung’s request, Koo eventually agreed to pay Chung half of his own sales commissions arising from the two transactions, after deducting 17.5 per cent of the amount for tax, as a reward for Chung’s assistance in procuring those transactions.
ICAC enquires revealed that Chung eventually accepted two bribes totalling $118,000 from Koo.
Koo, 48, who was charged by the ICAC in a separate case, pleaded guilty in May this year to three counts of offering an advantage to an agent, contrary to Section 9(2)(a) of the POBO. He was granted bail until December 30 this year for sentence.
Midland Realty had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by ICAC officer Derek Cheung.
Chung Ka-keung, 54, senior sales manager of Midland Realty (Commercial) Limited (Midland Realty), earlier pleaded guilty to two counts of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance (POBO).
In sentencing, Deputy Magistrate Mr Wong Tsz-ho said he took a starting point of nine months’ imprisonment and reduced the defendant’s jail term to four months after taking into account his guilty plea and willingness to make a repayment to Midland Realty.
The court heard that at the material time, Chung headed a branch of Midland Realty in Tsim Sha Tsui. His subordinates included a senior account manager, Ken Koo Chun-fai.
For each property transaction procured by a property agent, Midland Realty generally would charge both the vendor and the purchaser one per cent of the transaction price as agency commission, and the amount would be taken into account in calculating the monthly sales commissions of the property agent. As the head of a branch, Chung would also earn an overriding commission for property transactions procured by his subordinates.
The court heard that in December 2016, Chung instructed his subordinates to source commercial properties for a client of himself.
In late February 2017, upon the recommendation of Chung and Koo, the client purchased two commercial properties in Shau Kei Wan at respectively $25 million and over $27.3 million, totalling over $52.3 million.
Midland Realty subsequently paid sales commissions totalling over $280,000 and overriding commissions totalling about $150,000 respectively to Koo and Chung in connection with the two property transactions.
Upon Chung’s request, Koo eventually agreed to pay Chung half of his own sales commissions arising from the two transactions, after deducting 17.5 per cent of the amount for tax, as a reward for Chung’s assistance in procuring those transactions.
ICAC enquires revealed that Chung eventually accepted two bribes totalling $118,000 from Koo.
Koo, 48, who was charged by the ICAC in a separate case, pleaded guilty in May this year to three counts of offering an advantage to an agent, contrary to Section 9(2)(a) of the POBO. He was granted bail until December 30 this year for sentence.
Midland Realty had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by ICAC officer Derek Cheung.