Ex-button manufacturer co-owner and insurance agent charged by ICAC over inflated premium fraud
2022-8-11
A former co-owner of a button manufacturer and an insurance agent were charged by the ICAC today (August 11) for allegedly conspiring together to deceive the manufacturer into renewing its products liability insurance policies at inflated annual premiums for six years involving a total of over $470,000.
Leung Kwok-wai, 46, former co-owner of Dmark Metal Button Company Limited (Dmark); and Luk Kam-wai, 60, insurance agent of AIG Insurance Hong Kong Limited (AIG); jointly face six counts of conspiracy to defraud, contrary to Common Law.
The defendants were released on ICAC bail, pending their appearance in the Eastern Magistrates’ Courts next Monday (August 15) for plea.
The ICAC investigation arose from a corruption complaint referred by the Insurance Authority (IA). Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charging the two defendants.
The offences took place between October 2013 and November 2018. At the material time, Leung was a co-owner of Dmark holding half of its shares. Luk was the handling agent of Dmark’s products liability insurance policy taken out with AIG.
During the period, AIG issued six renewal quotations to Luk for the annual renewal of Dmark’s policy. According to the policy of AIG, Luk was allowed to collect premium payments from Dmark on behalf of AIG, deduct his relevant commissions, and return the remaining sum to the insurer.
The charges allege that Leung and Luk conspired together to defraud Dmark by dishonestly falsely representing that the premiums for products liability insurance policies taken out by Dmark with AIG between 2013 and 2019 were over $470,000 in total, thereby causing and inducing Dmark to pay the premiums to a company of Luk.
The ICAC investigation revealed that at the material time, Luk had allegedly overstated the premiums concerned by over $170,000 in total and passed the sums to Leung.
The IA and AIG have rendered full assistance to the ICAC during its investigation into the case.
Leung Kwok-wai, 46, former co-owner of Dmark Metal Button Company Limited (Dmark); and Luk Kam-wai, 60, insurance agent of AIG Insurance Hong Kong Limited (AIG); jointly face six counts of conspiracy to defraud, contrary to Common Law.
The defendants were released on ICAC bail, pending their appearance in the Eastern Magistrates’ Courts next Monday (August 15) for plea.
The ICAC investigation arose from a corruption complaint referred by the Insurance Authority (IA). Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charging the two defendants.
The offences took place between October 2013 and November 2018. At the material time, Leung was a co-owner of Dmark holding half of its shares. Luk was the handling agent of Dmark’s products liability insurance policy taken out with AIG.
During the period, AIG issued six renewal quotations to Luk for the annual renewal of Dmark’s policy. According to the policy of AIG, Luk was allowed to collect premium payments from Dmark on behalf of AIG, deduct his relevant commissions, and return the remaining sum to the insurer.
The charges allege that Leung and Luk conspired together to defraud Dmark by dishonestly falsely representing that the premiums for products liability insurance policies taken out by Dmark with AIG between 2013 and 2019 were over $470,000 in total, thereby causing and inducing Dmark to pay the premiums to a company of Luk.
The ICAC investigation revealed that at the material time, Luk had allegedly overstated the premiums concerned by over $170,000 in total and passed the sums to Leung.
The IA and AIG have rendered full assistance to the ICAC during its investigation into the case.