Ex-insurance brokers jailed for $600,000 fraud
2015-9-16
Two former insurance brokers of two broker firms, who were charged by the ICAC, were today (Wednesday) sentenced to jail terms up to 20 months at the District Court for defrauding an insurance company of commissions totalling over $600,000 in relation to four policies.
Anthony Fan Ming-kei, 39, a former technical representative of Convoy Financial Services Limited (Convoy), received a jail term of 20 months, while Lai Kwok-hing, 37, a former technical representative of GET Wealth Management Limited (GET), was jailed for 14 months.
Judge Mr Frankie Yiu Fun-che said he meted out immediate custodial sentences to the defendants as their fraud offences, which involved a calculated plan, were serious in nature and constituted a serious breach of trust.
Fan and Lai were earlier each found guilty of four counts of fraud, contrary to Section 16A of the Theft Ordinance.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above fraud offences.
The court heard that at the material time, Convoy and GET were broker firms registered with Hong Kong Professional Insurance Brokers Association (PIBA) and The Hong Kong Confederation of Insurance Brokers (CIB) respectively.
In August 2000 and October 2007, Zurich International Life Limited (Zurich) entered into broker agreements with Convoy and GET respectively, and entrusted to promote its investment-linked insurance policies.
Zurich would pay Convoy and GET commissions in accordance with the rate stipulated in the broker agreements. The commission rate offered by GET to its technical representatives was higher than that offered by Convoy.
Fan was registered with PIBA as a technical representative of Convoy, while Lai was registered with CIB as a technical representative of GET.
The court heard that between March 28 and May 8, 2012, Fan falsely represented to four policyholders that they had taken out investment-linked insurance policies through Convoy, with him named as their handling technical representative.
However, the policies were in fact taken out through GET, and Lai was named as the handling technical representative. Neither did the four policyholders know that the policies were taken out via GET nor they know Lai at all.
Lai falsely represented to Zurich that the policies were taken out via GET and he was the handling technical representative. Believing that the information on the policy applications received from GET was true and the applications concerned were handled by Lai, Zurich released over $600,000 in commissions to GET, the court was told.
Convoy and Zurich had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Leslie Parry, assisted by ICAC officer Bernard Kam.
Anthony Fan Ming-kei, 39, a former technical representative of Convoy Financial Services Limited (Convoy), received a jail term of 20 months, while Lai Kwok-hing, 37, a former technical representative of GET Wealth Management Limited (GET), was jailed for 14 months.
Judge Mr Frankie Yiu Fun-che said he meted out immediate custodial sentences to the defendants as their fraud offences, which involved a calculated plan, were serious in nature and constituted a serious breach of trust.
Fan and Lai were earlier each found guilty of four counts of fraud, contrary to Section 16A of the Theft Ordinance.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above fraud offences.
The court heard that at the material time, Convoy and GET were broker firms registered with Hong Kong Professional Insurance Brokers Association (PIBA) and The Hong Kong Confederation of Insurance Brokers (CIB) respectively.
In August 2000 and October 2007, Zurich International Life Limited (Zurich) entered into broker agreements with Convoy and GET respectively, and entrusted to promote its investment-linked insurance policies.
Zurich would pay Convoy and GET commissions in accordance with the rate stipulated in the broker agreements. The commission rate offered by GET to its technical representatives was higher than that offered by Convoy.
Fan was registered with PIBA as a technical representative of Convoy, while Lai was registered with CIB as a technical representative of GET.
The court heard that between March 28 and May 8, 2012, Fan falsely represented to four policyholders that they had taken out investment-linked insurance policies through Convoy, with him named as their handling technical representative.
However, the policies were in fact taken out through GET, and Lai was named as the handling technical representative. Neither did the four policyholders know that the policies were taken out via GET nor they know Lai at all.
Lai falsely represented to Zurich that the policies were taken out via GET and he was the handling technical representative. Believing that the information on the policy applications received from GET was true and the applications concerned were handled by Lai, Zurich released over $600,000 in commissions to GET, the court was told.
Convoy and Zurich had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Leslie Parry, assisted by ICAC officer Bernard Kam.