Ex-sales manager of insurance company guilty of MPF commissions fraud
2019-7-4
A former sales manager of an insurance company was today (July 4) convicted at the Eastern Magistracy of defrauding her then employer and a trustee of the Mandatory Provident Fund (MPF) of commissions and cash incentives totalling about $21,000 by submitting 26 MPF applications containing false information.
Chan Wah, 41, former sales manager of ACE Life Insurance Company Limited (ACE), was found guilty of one count of fraud, contrary to Section 16A (1) of the Theft Ordinance. ACE was renamed as Chubb Life Insurance Company Limited (Chubb) in April 2016.
Magistrate Mr Lam Tsz-kan adjourned the case to July 25 for sentence, pending a community service order report. The defendant was granted cash bail.
The court heard that at the material time, the defendant was a sales manager of ACE and the up-line manager of an insurance agent. The defendant could not engage in selling MPF products as she was not a registered MPF intermediary, but the insurance agent possessed the qualification.
Between June 26 and November 5, 2015, ACE received 26 applications for taking out an MPF product of Bank Consortium Trust Company Limited (BCT). In the application forms, the insurance agent was named as the handling agent while the defendant was named as her up-line manager.
Believing that the information contained in the application forms was true and accurate, ACE passed the application forms to BCT for approval. After approving the applications, BCT released commissions amounting to over $14,000 to the insurance agent via ACE, and granted cash incentives totalling $6,100 to her.
In October 2015, the defendant told the insurance agent that she had submitted some MPF applications to ACE and named the latter as the handling agent in those application forms. The defendant further requested the insurance agent to return the commissions concerned to her.
The insurance agent subsequently reported the matter to ACE in December 2015. During an internal interview, the insurance agent confirmed that she did not handle the MPF applications concerned, the court was told.
Chubb and BCT had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Diana Cheung, assisted by ICAC officer Justin Tung.
Chan Wah, 41, former sales manager of ACE Life Insurance Company Limited (ACE), was found guilty of one count of fraud, contrary to Section 16A (1) of the Theft Ordinance. ACE was renamed as Chubb Life Insurance Company Limited (Chubb) in April 2016.
Magistrate Mr Lam Tsz-kan adjourned the case to July 25 for sentence, pending a community service order report. The defendant was granted cash bail.
The court heard that at the material time, the defendant was a sales manager of ACE and the up-line manager of an insurance agent. The defendant could not engage in selling MPF products as she was not a registered MPF intermediary, but the insurance agent possessed the qualification.
Between June 26 and November 5, 2015, ACE received 26 applications for taking out an MPF product of Bank Consortium Trust Company Limited (BCT). In the application forms, the insurance agent was named as the handling agent while the defendant was named as her up-line manager.
Believing that the information contained in the application forms was true and accurate, ACE passed the application forms to BCT for approval. After approving the applications, BCT released commissions amounting to over $14,000 to the insurance agent via ACE, and granted cash incentives totalling $6,100 to her.
In October 2015, the defendant told the insurance agent that she had submitted some MPF applications to ACE and named the latter as the handling agent in those application forms. The defendant further requested the insurance agent to return the commissions concerned to her.
The insurance agent subsequently reported the matter to ACE in December 2015. During an internal interview, the insurance agent confirmed that she did not handle the MPF applications concerned, the court was told.
Chubb and BCT had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Diana Cheung, assisted by ICAC officer Justin Tung.