Duo penalised for $800,000 mortgage loan fraud

2002-7-12

A proprietor and a property agent of a real estate agency were today (Friday) sentenced at District Court for a $800,000 mortgage loan fraud.

Ng Sai-ming, 30, proprietor of Leading Properties Limited (Leading Properties), was sentenced to 18 months’ imprisonment, suspended for two years, while Ng Sai-cheong, 36, property agent of Leading Properties was ordered to perform 200 hours of community service.

The two defendants were today found guilty by Judge Barnes of one count of obtaining a pecuniary advantage by deception.

The case was uncovered by the ICAC during an enquiry into a corruption complaint.

The court heard that in early September 1999, a man, through the liaison of Ng Sai-ming, agreed to buy a property on Third Street, Sai Ying Pun, at $760,000 from the owner.

Both the buyer and the owner then signed a preliminary sales and purchase agreement.

Subsequently, the buyer wanted to withdraw from the deal and sought assistance from Ng Sai-ming and Ng Sai-cheong.

After negotiations, Ng Sai-cheong and the buyer agreed that Ng Sai-cheong would purchase the property, and that the purchase price was to be inflated to $1,200,000 in all conveyancing documents for obtaining a higher mortgage loan from a bank.

On October 2, 1999, Ng Sai-ming, having full knowledge of the scheme, prepared a preliminary sales and purchase agreement for them to sign.

After signing, Ng Sai-cheong submitted the agreement to the Standard Chartered Bank to apply for a loan.

The bank approved the application, and granted a $805,000 loan to Ng Sai-cheong.

The prosecution was today represented by Leo Chan on a fiat, assisted by ICAC officer Jasmine Chan.
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