Flat owner charged by ICAC with offering ‘laisee’ to property agent to avoid paying commission
2021-9-27
A property owner was charged by the ICAC today (September 27) with offering a ‘laisee’ of $10,000 to a property agent of an estate agency in a bid to avoid paying the agency commission in relation to the sale of his flat.
The ICAC investigation arose from a corruption complaint. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charging the property owner with one count of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance (POBO).
Leung Ho-kwong, 54, retired, was released on ICAC bail. He will appear in the West Kowloon Magistrates’ Courts on Wednesday (September 29) for plea.
In November 2020, the defendant entrusted Forever Agency Limited (FAL) to sell his flat in Tsuen Wan. With the assistance of a property agent of FAL, the defendant sold the flat at $7.08 million and agreed to pay one per cent of the transaction price, which was $70,800, to FAL as agency commission.
The charge alleges that on or about February 9, 2021, the defendant, without lawful authority or reasonable excuse, offered a “laisee” of $10,000 to the property agent, as an inducement to or reward for the property agent ceasing to urge him for the full payment of the commission payable to FAL in relation to the selling of his flat.
The property agent refused to accept the “laisee” concerned. FAL has rendered full assistance to the ICAC during its investigation into the case.
Section 9 of the POBO states that no agent (including an employee) shall solicit or accept any advantage without the permission of his/her principal (including an employer) when conducting the principal’s affairs or business. Offering an advantage to an agent without his/her principal’s approval also constitutes bribery offence.
An ICAC spokesperson reminds property owners and buyers to refrain from offering any advantages, including “laisees”, to property agents in relation to property transactions without the approval of their employers and the counterparties in the transactions.
The ICAC investigation arose from a corruption complaint. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charging the property owner with one count of offering an advantage to an agent, contrary to Section 9(2)(a) of the Prevention of Bribery Ordinance (POBO).
Leung Ho-kwong, 54, retired, was released on ICAC bail. He will appear in the West Kowloon Magistrates’ Courts on Wednesday (September 29) for plea.
In November 2020, the defendant entrusted Forever Agency Limited (FAL) to sell his flat in Tsuen Wan. With the assistance of a property agent of FAL, the defendant sold the flat at $7.08 million and agreed to pay one per cent of the transaction price, which was $70,800, to FAL as agency commission.
The charge alleges that on or about February 9, 2021, the defendant, without lawful authority or reasonable excuse, offered a “laisee” of $10,000 to the property agent, as an inducement to or reward for the property agent ceasing to urge him for the full payment of the commission payable to FAL in relation to the selling of his flat.
The property agent refused to accept the “laisee” concerned. FAL has rendered full assistance to the ICAC during its investigation into the case.
Section 9 of the POBO states that no agent (including an employee) shall solicit or accept any advantage without the permission of his/her principal (including an employer) when conducting the principal’s affairs or business. Offering an advantage to an agent without his/her principal’s approval also constitutes bribery offence.
An ICAC spokesperson reminds property owners and buyers to refrain from offering any advantages, including “laisees”, to property agents in relation to property transactions without the approval of their employers and the counterparties in the transactions.