Ex-salesperson of finance company jailed for conspiracy to defraud revealed in ICAC probe, involving $600,000 referral fees
2022-11-3
A former salesperson of a finance company, charged by the ICAC, was today (November 3) sentenced to 25 months’ imprisonment after admitting conspiracy to defraud the company of referral fees totalling about $600,000 by making false representations that various loan applications were referred by a referral agent. The scam was revealed in a corruption investigation.
Wong Hong-chuen, 42, former sales executive of KP Financial Services Limited (KPL), and Wong Kan, 40, former referral agent of KPL, jointly faced one count of conspiracy to defraud, contrary to Common Law. Wong Hong-chuen pleaded guilty to the charge today, while the charge against Wong Kan was left on file at the District Court.
In sentencing, District Judge Mr Isaac Tam Sze-lok said the acts Wong Hong-chuen constituted a breach of trust. The court took a starting point of 39 months in jail and reduced his jail term to 25 months, having considered his guilty plea and other factors.
The court heard that at the material time, Wong Hong-chuen was a sales executive of KPL, a licensed money lender. Through Wong Hong-chuen’s introduction, his younger cousin Wong Kan registered as a referral agent of KPL in December 2014. Wong Hong-chuen was entitled to sales commission of 0.5% of the loan amount for each successful application handled by him, while Wong Kan would receive 1% of the loan amount as referral fee for any application successfully referred by him to KPL.
Between December 2014 and July 2015, Wong Hong-chuen submitted to KPL 14 loan applications in which Wong Kan was named as the referral agent. As a result, KPL released referral fees totalling about $600,000 to Wong Kan.
The ICAC investigation arose from a corruption complaint. Investigation revealed that Wong Kan had disbursed a total of over $400,000 to Wong Hong-chuen and his four family members after receiving the referral fees.
Wong Hong-chuen admitted that the 14 loan applications were not referred by Wong Kan. He named Wong Kan as the referral agent to earn extra money.
Had KPL known that the loan applications were not referred by Wong Kan, it would not have released the referral fees to him.
KPL had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by Senior Public Prosecutor Ivan Shiu, assisted by ICAC officers May Lam and Janice Au Yeung.
Wong Hong-chuen, 42, former sales executive of KP Financial Services Limited (KPL), and Wong Kan, 40, former referral agent of KPL, jointly faced one count of conspiracy to defraud, contrary to Common Law. Wong Hong-chuen pleaded guilty to the charge today, while the charge against Wong Kan was left on file at the District Court.
In sentencing, District Judge Mr Isaac Tam Sze-lok said the acts Wong Hong-chuen constituted a breach of trust. The court took a starting point of 39 months in jail and reduced his jail term to 25 months, having considered his guilty plea and other factors.
The court heard that at the material time, Wong Hong-chuen was a sales executive of KPL, a licensed money lender. Through Wong Hong-chuen’s introduction, his younger cousin Wong Kan registered as a referral agent of KPL in December 2014. Wong Hong-chuen was entitled to sales commission of 0.5% of the loan amount for each successful application handled by him, while Wong Kan would receive 1% of the loan amount as referral fee for any application successfully referred by him to KPL.
Between December 2014 and July 2015, Wong Hong-chuen submitted to KPL 14 loan applications in which Wong Kan was named as the referral agent. As a result, KPL released referral fees totalling about $600,000 to Wong Kan.
The ICAC investigation arose from a corruption complaint. Investigation revealed that Wong Kan had disbursed a total of over $400,000 to Wong Hong-chuen and his four family members after receiving the referral fees.
Wong Hong-chuen admitted that the 14 loan applications were not referred by Wong Kan. He named Wong Kan as the referral agent to earn extra money.
Had KPL known that the loan applications were not referred by Wong Kan, it would not have released the referral fees to him.
KPL had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by Senior Public Prosecutor Ivan Shiu, assisted by ICAC officers May Lam and Janice Au Yeung.