Ex-regional director of insurer charged by ICAC with fraud for taking out dummy policies
2022-4-28
A former regional director of an insurance company was charged by the ICAC last night (April 27) for allegedly conspiring with a downline insurance manager to deceive the insurer into releasing commissions and bonuses totalling about $1 million to them and a downline insurance agent by taking out insurance policies for dummy customers and making false representations about their handling agent.
Lam Fuk-yuen, 54, former regional director of Manulife (International) Limited (Manulife) faces one count of conspiracy to defraud, contrary to Common Law. He will be brought to the Kwun Tong Magistrates’ Courts this afternoon (April 28) for mention.
The alleged offence took place between November 2017 and December 2018. During the period, the defendant was promoted from senior district director to regional director of Manulife.
In terms of the sale of insurance policies, Manulife required all insurance agents to comply with its Agent Code of Conduct, which included that insurance agents should never pay any premium or contribution on behalf of customers.
The charge alleges that the defendant conspired together with a downline insurance manager to defraud Manulife by dishonestly falsely representing that the policyholders whose names appeared on the relevant application forms applied for insurance policies and paid for the corresponding premium; and that a downline insurance agent was the handling agent for the policy applications, causing and inducing Manulife to underwrite and issue those insurance policies and to pay commission and other payments in relation to those insurance policies to the defendant and his two downline staff.
ICAC inquiries revealed that during the above period, Manulife received 10 insurance policy applications purportedly made by nine customers. It is alleged that the defendant had paid the corresponding premium after Manulife approved the applications.
Investigation also revealed that the defendant received overriding commissions and bonuses totalling about $340,000 in relation to the 10 insurance policies from Manulife.
Manulife had also released commissions and overriding commissions totalling over $750,000 in relation to the 10 insurance policies to the two downline staff of the defendant.
The ICAC investigation arose from a corruption complaint. Arising from the same investigation, the ICAC had earlier charged the two downline staff with one count of conspiracy to defraud in a separate case.
Manulife has rendered full assistance to the ICAC during its investigation into the case.
Lam Fuk-yuen, 54, former regional director of Manulife (International) Limited (Manulife) faces one count of conspiracy to defraud, contrary to Common Law. He will be brought to the Kwun Tong Magistrates’ Courts this afternoon (April 28) for mention.
The alleged offence took place between November 2017 and December 2018. During the period, the defendant was promoted from senior district director to regional director of Manulife.
In terms of the sale of insurance policies, Manulife required all insurance agents to comply with its Agent Code of Conduct, which included that insurance agents should never pay any premium or contribution on behalf of customers.
The charge alleges that the defendant conspired together with a downline insurance manager to defraud Manulife by dishonestly falsely representing that the policyholders whose names appeared on the relevant application forms applied for insurance policies and paid for the corresponding premium; and that a downline insurance agent was the handling agent for the policy applications, causing and inducing Manulife to underwrite and issue those insurance policies and to pay commission and other payments in relation to those insurance policies to the defendant and his two downline staff.
ICAC inquiries revealed that during the above period, Manulife received 10 insurance policy applications purportedly made by nine customers. It is alleged that the defendant had paid the corresponding premium after Manulife approved the applications.
Investigation also revealed that the defendant received overriding commissions and bonuses totalling about $340,000 in relation to the 10 insurance policies from Manulife.
Manulife had also released commissions and overriding commissions totalling over $750,000 in relation to the 10 insurance policies to the two downline staff of the defendant.
The ICAC investigation arose from a corruption complaint. Arising from the same investigation, the ICAC had earlier charged the two downline staff with one count of conspiracy to defraud in a separate case.
Manulife has rendered full assistance to the ICAC during its investigation into the case.