Mortgage loan applicant charged by ICAC jailed for 10 months over $3.9m fraud
2023-4-28
A mortgage loan applicant, charged by the ICAC, was today (April 28) sentenced to 10 months’ imprisonment at the Eastern Magistrates’ Courts for having deceived a financial services company into granting him a mortgage loan and a decoration loan totalling about $3.9 million by making false representations about his occupation and salary. The illegal activities were revealed in the course of a corruption investigation.
Johnson Szeto Keung-sang, 57, director, was earlier found guilty of two counts of fraud, contrary to Section 16A (1) of the Theft Ordinance.
In sentencing, Magistrate Ms Vivian Ho Wai-han remarked that the court had to mete out a custodial sentence, having considered the nature of the offences, the defendant’s role played in the scam, and the modus operandi and the amount of loans involved.
The court heard that in May 2018, the defendant submitted applications for mortgage and decoration loans totalling $3.9 million made with OCBC Wing Hang Credit Limited (Wing Hang Credit) through a financial intermediary. He stated in the application forms, which were supported by employment proofs and bank account statements, that he had been employed by an engineering company as engineering director for over 10 years with a monthly salary of over $200,000.
The loan applications were subsequently approved by Wing Hang Credit and drawdowns totalling $3.9 million were made in late June and August 2018 respectively.
The ICAC investigation arose from a corruption complaint. Investigation revealed that the defendant had never worked at the engineering company and the company had never issued any employment proof to him. It was also revealed that the defendant had also made various cash deposits in the amount of $200,000 into his bank account purporting to be the monthly salary he received.
Had Wing Hang Credit known that the loan applications and supporting documents contained fraudulent information, it would not have approved his application for a mortgage loan and a decoration loan.
Wing Hang Credit had rendered full assistance to the Commission during its investigation into the case.
The prosecution was today represented by prosecuting counsel Kenny Chan, assisted by ICAC officer Edward Ho.
Johnson Szeto Keung-sang, 57, director, was earlier found guilty of two counts of fraud, contrary to Section 16A (1) of the Theft Ordinance.
In sentencing, Magistrate Ms Vivian Ho Wai-han remarked that the court had to mete out a custodial sentence, having considered the nature of the offences, the defendant’s role played in the scam, and the modus operandi and the amount of loans involved.
The court heard that in May 2018, the defendant submitted applications for mortgage and decoration loans totalling $3.9 million made with OCBC Wing Hang Credit Limited (Wing Hang Credit) through a financial intermediary. He stated in the application forms, which were supported by employment proofs and bank account statements, that he had been employed by an engineering company as engineering director for over 10 years with a monthly salary of over $200,000.
The loan applications were subsequently approved by Wing Hang Credit and drawdowns totalling $3.9 million were made in late June and August 2018 respectively.
The ICAC investigation arose from a corruption complaint. Investigation revealed that the defendant had never worked at the engineering company and the company had never issued any employment proof to him. It was also revealed that the defendant had also made various cash deposits in the amount of $200,000 into his bank account purporting to be the monthly salary he received.
Had Wing Hang Credit known that the loan applications and supporting documents contained fraudulent information, it would not have approved his application for a mortgage loan and a decoration loan.
Wing Hang Credit had rendered full assistance to the Commission during its investigation into the case.
The prosecution was today represented by prosecuting counsel Kenny Chan, assisted by ICAC officer Edward Ho.