Insurance agent charged as ICAC graft probe reveals alleged $1.5m commissions fraud
2023-4-20
An insurance agent was charged by the ICAC today (April 20) for allegedly defrauding an insurer of commissions totalling about $1.5 million by making false representations that 20 clients had taken out various insurance policies.
Yeung Yan-to, 31, former insurance agent of AXA China Region Insurance Company Limited (AXA), faces two counts of conspiracy to defraud, contrary to the Common Law. He will be brought to the Eastern Magistrates’ Courts tomorrow (April 21) for plea.
At the material time, the defendant was an insurance agent of AXA, while a branch manager of AXA was his up-line agent. When an insurance product was sold, the handling agent and his/her up-line manager would be entitled to a first-year commission and an overriding commission respectively.
Between August 2017 and June 2018, AXA received 21 insurance policy applications purportedly taken out by 20 clients and handled by the defendant or another down-line agent of the branch manager.
It is alleged that the defendant had conspired with the branch manager and the down-line agent to defraud AXA by dishonestly falsely representing to the insurer that the applications were genuinely made by those clients, causing AXA to approve the applications and release commissions to the trio.
The ICAC investigation arose from a corruption complaint. Investigation revealed that the clients did not make the above applications and had never paid any premium for the policies. Those insurance policies eventually lapsed after subsequent premiums were not paid.
Had AXA known that the 21 applications contained false information, it would not have approved them and released commissions totalling about $1.5 million to the defendant, the branch manager and the down-line agent.
AXA has rendered full assistance to the ICAC during its investigation into the case.
Yeung Yan-to, 31, former insurance agent of AXA China Region Insurance Company Limited (AXA), faces two counts of conspiracy to defraud, contrary to the Common Law. He will be brought to the Eastern Magistrates’ Courts tomorrow (April 21) for plea.
At the material time, the defendant was an insurance agent of AXA, while a branch manager of AXA was his up-line agent. When an insurance product was sold, the handling agent and his/her up-line manager would be entitled to a first-year commission and an overriding commission respectively.
Between August 2017 and June 2018, AXA received 21 insurance policy applications purportedly taken out by 20 clients and handled by the defendant or another down-line agent of the branch manager.
It is alleged that the defendant had conspired with the branch manager and the down-line agent to defraud AXA by dishonestly falsely representing to the insurer that the applications were genuinely made by those clients, causing AXA to approve the applications and release commissions to the trio.
The ICAC investigation arose from a corruption complaint. Investigation revealed that the clients did not make the above applications and had never paid any premium for the policies. Those insurance policies eventually lapsed after subsequent premiums were not paid.
Had AXA known that the 21 applications contained false information, it would not have approved them and released commissions totalling about $1.5 million to the defendant, the branch manager and the down-line agent.
AXA has rendered full assistance to the ICAC during its investigation into the case.