Ex-employee of vehicle distributor charged by ICAC jailed for Euro 50,000 warranty claim fraud
2021-10-18
A former employee of a vehicle distributor, charged by the ICAC, was today (October 18) sentenced to 18 months’ imprisonment at the Fanling Magistrates’ Courts for defrauding a vehicle manufacturer of warranty claims for repair works totalling over Euro 50,000.
Leung Pak-lim, 35, former technical officer of Regal Motors Limited (Regal Motors) was earlier found guilty of two charges – one of conspiracy to defraud, contrary to Common Law; and one of conspiracy to use a false instrument, contrary to Sections 73 and 159A of the Crimes Ordinance.
In sentencing, Magistrate Mr Kenneth Chan Ping-chau said the case involved an overseas victim. The offences committed by the defendant had harmed the interest of honest business operators and undermined Hong Kong’s image as a clean and level playing field for businesses. Hence, there was no justification for any reduction in the defendant’s jail term.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that between 1970 and 2019, Regal Motors was the sole distributor of products of German vehicle manufacturer MAN Truck & Bus SE (MAN Truck & Bus) in Hong Kong. MAN Truck & Bus provided a two-year warranty for chassis of vehicles sold by Regal Motors. Where repairs conducted by Regal Motors for its customers were covered by warranties, it was required to submit warranty claims to MAN Truck & Bus.
At the material time, the defendant was a technical officer posted to Regal Motors’ technical team. The team was responsible for assisting customers to activate their warranties, and submit warranty claims for repair works covered by warranty.
In May 2018, the defendant conspired with a technical trainee of Regal Motors to activate the warranty of a customer’s vehicle by submitting a false vehicle registration document to MAN Truck & Bus.
ICAC enquiries revealed that the first registration date was amended by the defendant to a later date as the deadline for activating the warranty had passed. Thus, MAN Truck & Bus was induced to approve the application for activating the warranty.
Regal Motors subsequently conducted repairs for the vehicle on four occasions and the repair costs, totalling over Euro 6,900, were borne by MAN Truck & Bus under the warranty.
The court also heard that in June 2018, the defendant found that some vehicles repaired by Regal Motors were not covered by warranty. He then conspired with the assistant technical manager of the technical team and the aforesaid technical trainee to submit 53 false warranty claims to MAN Truck & Bus between June and November 2018. They falsely represented that the warranty claims involved vehicles of similar models covered by warranty. As a result, MAN Truck & Bus was induced to settle warranty claims totalling over Euro 43,000.
Regal Motors and MAN Truck & Bus had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Stephen Ma, assisted by ICAC officer Tom Li.
Leung Pak-lim, 35, former technical officer of Regal Motors Limited (Regal Motors) was earlier found guilty of two charges – one of conspiracy to defraud, contrary to Common Law; and one of conspiracy to use a false instrument, contrary to Sections 73 and 159A of the Crimes Ordinance.
In sentencing, Magistrate Mr Kenneth Chan Ping-chau said the case involved an overseas victim. The offences committed by the defendant had harmed the interest of honest business operators and undermined Hong Kong’s image as a clean and level playing field for businesses. Hence, there was no justification for any reduction in the defendant’s jail term.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offences.
The court heard that between 1970 and 2019, Regal Motors was the sole distributor of products of German vehicle manufacturer MAN Truck & Bus SE (MAN Truck & Bus) in Hong Kong. MAN Truck & Bus provided a two-year warranty for chassis of vehicles sold by Regal Motors. Where repairs conducted by Regal Motors for its customers were covered by warranties, it was required to submit warranty claims to MAN Truck & Bus.
At the material time, the defendant was a technical officer posted to Regal Motors’ technical team. The team was responsible for assisting customers to activate their warranties, and submit warranty claims for repair works covered by warranty.
In May 2018, the defendant conspired with a technical trainee of Regal Motors to activate the warranty of a customer’s vehicle by submitting a false vehicle registration document to MAN Truck & Bus.
ICAC enquiries revealed that the first registration date was amended by the defendant to a later date as the deadline for activating the warranty had passed. Thus, MAN Truck & Bus was induced to approve the application for activating the warranty.
Regal Motors subsequently conducted repairs for the vehicle on four occasions and the repair costs, totalling over Euro 6,900, were borne by MAN Truck & Bus under the warranty.
The court also heard that in June 2018, the defendant found that some vehicles repaired by Regal Motors were not covered by warranty. He then conspired with the assistant technical manager of the technical team and the aforesaid technical trainee to submit 53 false warranty claims to MAN Truck & Bus between June and November 2018. They falsely represented that the warranty claims involved vehicles of similar models covered by warranty. As a result, MAN Truck & Bus was induced to settle warranty claims totalling over Euro 43,000.
Regal Motors and MAN Truck & Bus had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Stephen Ma, assisted by ICAC officer Tom Li.