Ex-button manufacturer co-owner charged by ICAC jailed for 14 months over inflated premiums fraud
2023-4-13
A then co-owner of a button manufacturer, charged by the ICAC, was today (April 13) sentenced to 14 months’ imprisonment after being convicted at the Eastern Magistrates’ Courts of conspiring together with a then insurance agent for deceiving the manufacturer into renewing its products liability insurance policies at overstated annual premiums for six years, involving over $470,000 in total.
Leung Kwok-wai, 47, former co-owner of Dmark Metal Button Company Limited (Dmark), was found guilty by Magistrate Mr Tsang Chung-yiu of six counts of conspiracy to defraud, contrary to Common Law.
At the material time, Leung was a co-owner of Dmark holding half of its shares. Dmark took out a products liability insurance policy from AIG Insurance Hong Kong Limited (AIG) and insurance agent Luk Kam-wai was its handling agent. According to the policy of AIG, Luk was allowed to collect premium payments from Dmark on behalf of AIG, deduct his entitled commissions, and return the remaining sum to the insurer.
The court heard that on six occasions between October 2013 and November 2018, AIG issued renewal quotations to Luk in respect of Dmark’s policy. Upon Leung’s instruction, Luk issued six invoices containing overstated premiums to Dmark to remain as the handling agent of AIG’s insurance policy. During the period, Dmark paid a total of about $470,000 to a company of Luk as premiums for renewing the insurance policy.
The ICAC investigation arose from a corruption complaint referred by the Insurance Authority (IA). Investigation revealed that the premiums were overstated by over $170,000 in total. Had Dmark known of the overstatements, it would not have approved the premium payments.
Luk, 61, former insurance agent of AIG, earlier pleaded guilty to three counts of conspiracy to defraud. His sentencing is scheduled for April 26.
The IA and AIG had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by Senior Public Prosecutor Joey Lin, assisted by ICAC officer Betty Wong.
Leung Kwok-wai, 47, former co-owner of Dmark Metal Button Company Limited (Dmark), was found guilty by Magistrate Mr Tsang Chung-yiu of six counts of conspiracy to defraud, contrary to Common Law.
At the material time, Leung was a co-owner of Dmark holding half of its shares. Dmark took out a products liability insurance policy from AIG Insurance Hong Kong Limited (AIG) and insurance agent Luk Kam-wai was its handling agent. According to the policy of AIG, Luk was allowed to collect premium payments from Dmark on behalf of AIG, deduct his entitled commissions, and return the remaining sum to the insurer.
The court heard that on six occasions between October 2013 and November 2018, AIG issued renewal quotations to Luk in respect of Dmark’s policy. Upon Leung’s instruction, Luk issued six invoices containing overstated premiums to Dmark to remain as the handling agent of AIG’s insurance policy. During the period, Dmark paid a total of about $470,000 to a company of Luk as premiums for renewing the insurance policy.
The ICAC investigation arose from a corruption complaint referred by the Insurance Authority (IA). Investigation revealed that the premiums were overstated by over $170,000 in total. Had Dmark known of the overstatements, it would not have approved the premium payments.
Luk, 61, former insurance agent of AIG, earlier pleaded guilty to three counts of conspiracy to defraud. His sentencing is scheduled for April 26.
The IA and AIG had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by Senior Public Prosecutor Joey Lin, assisted by ICAC officer Betty Wong.