Seven jailed for $23m fraudulent insurance claims
2007-8-20
Seven persons, charged by the ICAC, were today (Monday) sentenced to various jail terms up to five and a half years at the District Court for their roles in making fraudulent insurance claims totalling over $23 million by inflicting eye injuries.
Kwok Yan-sang, 54, former senior manager of CMG Asia Limited (CMG), was jailed for five and a half years; while his younger brother Kwok Wah-cheong, 47, former insurance agent, received a jail term of four years and three months.
Ho Shuk-yin, 45, former team manager of CMG, was sentenced to three years and eight months' imprisonment, while Ng Pui-lam, 27, transportation worker, was jailed for one year and nine months. Ho was also ordered to pay back $30,000 bribe money to CMG.
Liu Yuan-ming, 38, Gu Zhi-yuan, 34 and Zhang Zhi-biao, 36, all Mainland residents, were respectively jailed for two years and two months, two years, and two years and three months. In addition, a two-week suspended sentence which was earlier given to Liu for breaching his condition of stay was reactivated.
In passing sentences, Judge Joseph Yau Chi-lap described the defendants' act as frightful and a misery of mankind.
The judge also reprimanded mastermind Kwok Wah-cheong for being shameful and having no conscience at all in premeditating the fraudulent insurance scam.
The defendants were earlier convicted of a total of 12 charges, including conspiracy to defraud, possessing forged identity cards or identity cards relating to others, agent using documents with intent to deceive her principal, agent accepting an advantag e, breaching a condition of stay, and remaining in Hong Kong after having landed unlawfully.
The case arose from a corruption complaint. Subsequent ICAC inquiries revealed the fraudulent insurance scam.
The court heard that Kwok Wah-cheong, being the mastermind of the scam, had taken out insurance policies with various insurance companies using the names of persons who had either lost or sold their identity cards to a criminal syndicate.
Kwok Wah-cheong then recruited a number of Mainland residents, including Liu and Gu who, with the assistance of Zhang, agreed to inflict injury to their eyes for the purpose of making false claims in relation to the above insurance policies.
The court heard that between March 31, 2004 and June 15, 2006, Kwok Wah-cheong, Ho, Ng, Liu, Gu, Zhang and Kwok Yan-sang had conspired together and with two other persons, respectively nicknamed "Ko Lo" and "Ah Loy", to defraud a total of 16 insurance com panies.
They had falsely represented to those insurance companies that "Ko Lo", "Ah Loy", Liu and Gu were four other individuals who were the insured of various insurance policies, and that those individuals had sustained injuries to the eyes caused by accidents.
So far, the insurance companies had paid out over $8 million compensation. Had the fraudulent applications been fully perpetrated, the potential losses would amount to $23.68 million.
The court also heard that in 2005, Ho accepted $30,000 from Kwok Wah-cheong, Kwok Yan-sang and other persons as rewards for assisting Kwok Wah-cheong in submitting a claim against CMG for compensation under an insurance policy in respect of an insured per son, and using two false certificates of compensation assessment with intent to mislead CMG.
The court also heard that on June 15, 2006, Kwok wah-cheong had in his possession 132 Hong Kong identity cards which related to other persons, while Zhang possessed a Hong Kong identity card relating to another person.
On the same day, Liu was found to have in his possession a forged Hong Kong identity card bearing a photograph of himself. He had also remained in Hong Kong without the authority of the Director of Immigration after having landed in Hong Kong unlawfully.
Gu contravened a condition of stay by remaining in Hong Kong after April 25, 2006, the court was told.
The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Henry Lung.
Kwok Yan-sang, 54, former senior manager of CMG Asia Limited (CMG), was jailed for five and a half years; while his younger brother Kwok Wah-cheong, 47, former insurance agent, received a jail term of four years and three months.
Ho Shuk-yin, 45, former team manager of CMG, was sentenced to three years and eight months' imprisonment, while Ng Pui-lam, 27, transportation worker, was jailed for one year and nine months. Ho was also ordered to pay back $30,000 bribe money to CMG.
Liu Yuan-ming, 38, Gu Zhi-yuan, 34 and Zhang Zhi-biao, 36, all Mainland residents, were respectively jailed for two years and two months, two years, and two years and three months. In addition, a two-week suspended sentence which was earlier given to Liu for breaching his condition of stay was reactivated.
In passing sentences, Judge Joseph Yau Chi-lap described the defendants' act as frightful and a misery of mankind.
The judge also reprimanded mastermind Kwok Wah-cheong for being shameful and having no conscience at all in premeditating the fraudulent insurance scam.
The defendants were earlier convicted of a total of 12 charges, including conspiracy to defraud, possessing forged identity cards or identity cards relating to others, agent using documents with intent to deceive her principal, agent accepting an advantag e, breaching a condition of stay, and remaining in Hong Kong after having landed unlawfully.
The case arose from a corruption complaint. Subsequent ICAC inquiries revealed the fraudulent insurance scam.
The court heard that Kwok Wah-cheong, being the mastermind of the scam, had taken out insurance policies with various insurance companies using the names of persons who had either lost or sold their identity cards to a criminal syndicate.
Kwok Wah-cheong then recruited a number of Mainland residents, including Liu and Gu who, with the assistance of Zhang, agreed to inflict injury to their eyes for the purpose of making false claims in relation to the above insurance policies.
The court heard that between March 31, 2004 and June 15, 2006, Kwok Wah-cheong, Ho, Ng, Liu, Gu, Zhang and Kwok Yan-sang had conspired together and with two other persons, respectively nicknamed "Ko Lo" and "Ah Loy", to defraud a total of 16 insurance com panies.
They had falsely represented to those insurance companies that "Ko Lo", "Ah Loy", Liu and Gu were four other individuals who were the insured of various insurance policies, and that those individuals had sustained injuries to the eyes caused by accidents.
So far, the insurance companies had paid out over $8 million compensation. Had the fraudulent applications been fully perpetrated, the potential losses would amount to $23.68 million.
The court also heard that in 2005, Ho accepted $30,000 from Kwok Wah-cheong, Kwok Yan-sang and other persons as rewards for assisting Kwok Wah-cheong in submitting a claim against CMG for compensation under an insurance policy in respect of an insured per son, and using two false certificates of compensation assessment with intent to mislead CMG.
The court also heard that on June 15, 2006, Kwok wah-cheong had in his possession 132 Hong Kong identity cards which related to other persons, while Zhang possessed a Hong Kong identity card relating to another person.
On the same day, Liu was found to have in his possession a forged Hong Kong identity card bearing a photograph of himself. He had also remained in Hong Kong without the authority of the Director of Immigration after having landed in Hong Kong unlawfully.
Gu contravened a condition of stay by remaining in Hong Kong after April 25, 2006, the court was told.
The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Henry Lung.