ICAC neutralizes syndicate allegedly swindling $18m insurance claims
2006-6-16
The ICAC has neutralized a syndicate allegedly having staged a number of labour injuries and traffic accidents respectively in Hong Kong and the Mainland to swindle insurance claims, amounting to about $18 million, with suspected corrupt assistance from e mployees of insurance companies.
In an operation codenamed " Bright Light ", which commenced on Wednesday (June 14), 22 persons were arrested.
The arrestees included two serving and four former insurance agents, a doctor, and a Mainlander. The remaining arrestees were two other Mainlanders involved in the staged injuries, and 12 other individuals.
The investigation arose from a corruption complaint, alleging that staff members of various insurance companies might have been bribed for processing fraudulent insurance claims.
ICAC enquiries revealed that a syndicate in Hong Kong had allegedly recruited various persons, including serving and former insurance agents, doctors in Hong Kong and the Mainland, as well as other individuals to orchestrate a number of labour injuries an d traffic accidents.
It was alleged that the syndicate, with the help of the doctors, had arranged to cause permanent loss of eyesight to at least four Mainland citizens, who were each offered or promised $200,000 to $300,000 as rewards.
The syndicate had allegedly used the personal data of various Hong Kong individuals to facilitate the bogus insurance claims in relation to those Mainlanders; while some employees of insurance companies had allegedly been offered monetary advantages for t heir assistance in processing the bogus claims.
During the ICAC operation, over 130 Hong Kong identity cards were seized. Forensic assistance from the Immigration Department confirmed that all the cards seized were genuine.
It was alleged that those identity cards were sold to the syndicate, some of which were used for taking out insurance policies and opening bank accounts for money laundering purposes.
At least eleven insurance companies were believed to be victims of fraudulent insurance claims submitted by the syndicate, which so far have amounted to $18 million. So far, compensation totalling $8 million had been issued based on the bogus claims.
The ICAC's operation has successfully halted a number of imminent bogus claims, which amounted to $9.6 million.
The ICAC has obtained full assistance from the insurance companies concerned and the Immigration Department.
Enquiries are continuing.
In an operation codenamed " Bright Light ", which commenced on Wednesday (June 14), 22 persons were arrested.
The arrestees included two serving and four former insurance agents, a doctor, and a Mainlander. The remaining arrestees were two other Mainlanders involved in the staged injuries, and 12 other individuals.
The investigation arose from a corruption complaint, alleging that staff members of various insurance companies might have been bribed for processing fraudulent insurance claims.
ICAC enquiries revealed that a syndicate in Hong Kong had allegedly recruited various persons, including serving and former insurance agents, doctors in Hong Kong and the Mainland, as well as other individuals to orchestrate a number of labour injuries an d traffic accidents.
It was alleged that the syndicate, with the help of the doctors, had arranged to cause permanent loss of eyesight to at least four Mainland citizens, who were each offered or promised $200,000 to $300,000 as rewards.
The syndicate had allegedly used the personal data of various Hong Kong individuals to facilitate the bogus insurance claims in relation to those Mainlanders; while some employees of insurance companies had allegedly been offered monetary advantages for t heir assistance in processing the bogus claims.
During the ICAC operation, over 130 Hong Kong identity cards were seized. Forensic assistance from the Immigration Department confirmed that all the cards seized were genuine.
It was alleged that those identity cards were sold to the syndicate, some of which were used for taking out insurance policies and opening bank accounts for money laundering purposes.
At least eleven insurance companies were believed to be victims of fraudulent insurance claims submitted by the syndicate, which so far have amounted to $18 million. So far, compensation totalling $8 million had been issued based on the bogus claims.
The ICAC's operation has successfully halted a number of imminent bogus claims, which amounted to $9.6 million.
The ICAC has obtained full assistance from the insurance companies concerned and the Immigration Department.
Enquiries are continuing.