Ex-insurance agent charged as ICAC probe reveals $250,000 commissions fraud over bogus policies
2022-8-30
A former insurance agent was charged by the ICAC today (August 30) with defrauding an insurer of commissions and a bonus totalling over $250,000 by making false representations that two clients had taken out insurance policies from the insurer.
Li Ka-yiu, 36, former insurance agent of FWD Life Insurance Company (Bermuda) Limited (FWD), faces two counts of fraud, contrary to Section 16A of the Theft Ordinance. He was released on ICAC bail, pending his appearance in the Eastern Magistrates’ Courts on Thursday (September 1) for plea.
At the material time, the defendant was an insurance agent of FWD. He would receive a first-year commission when an insurance product was sold. He would also receive various bonuses after meeting his sales target.
The charges allege that between July and August, 2019, the defendant falsely represented to FWD that two clients had applied for two insurance policies and paid the initial premiums and with intent to defraud, induced FWD to underwrite and issue the two insurance policies.
ICAC investigation revealed that FWD released two first-year commissions totalling about $158,000 in relation to the two insurance policies to the defendant. Having met his sales target, the defendant further received a year-end bonus of about $97,000 from FWD.
The ICAC investigation arose from a corruption complaint. Upon completion of the investigation, legal advice was sought from the Department of Justice, which advised charging the defendant. FWD has rendered full assistance to the ICAC during its investigation into the case.
Li Ka-yiu, 36, former insurance agent of FWD Life Insurance Company (Bermuda) Limited (FWD), faces two counts of fraud, contrary to Section 16A of the Theft Ordinance. He was released on ICAC bail, pending his appearance in the Eastern Magistrates’ Courts on Thursday (September 1) for plea.
At the material time, the defendant was an insurance agent of FWD. He would receive a first-year commission when an insurance product was sold. He would also receive various bonuses after meeting his sales target.
The charges allege that between July and August, 2019, the defendant falsely represented to FWD that two clients had applied for two insurance policies and paid the initial premiums and with intent to defraud, induced FWD to underwrite and issue the two insurance policies.
ICAC investigation revealed that FWD released two first-year commissions totalling about $158,000 in relation to the two insurance policies to the defendant. Having met his sales target, the defendant further received a year-end bonus of about $97,000 from FWD.
The ICAC investigation arose from a corruption complaint. Upon completion of the investigation, legal advice was sought from the Department of Justice, which advised charging the defendant. FWD has rendered full assistance to the ICAC during its investigation into the case.