Ex-district manager of insurance company charged by ICAC guilty of fraud over signing fee
2022-4-28
A former district manager of an insurance company, charged by the ICAC, was today (April 28) convicted at the District Court of deceiving the insurer into offering her a more favourable remuneration package involving a signing fee of over $860,000 by submitting false income proof statements which exaggerated her total income by over $1.5 million.
Lau Kit-yee, 61, former district manager of AIA (International) Limited (AIA), was found guilty of one count of fraud, contrary to Section 16A(1) of the Theft Ordinance.
Judge Mr Eddie Yip Chor-man adjourned the case to May 12 for sentence. The defendant was remanded in the custody of the Correctional Services Department.
The court heard that AIA offered remuneration packages, including signing fees, as incentives to recruit experienced insurance agents. A signing fee was calculated based on the income of a new recruit as shown on his or her income proof statements in the past 24 months.
In June 2015, the defendant was recruited to join AIA. For the purpose of calculating the relevant signing fee, she submitted her commission account statements in relation to another insurance company for the period between June 2013 and May 2015 to AIA.
Based on the commission account statements which purportedly showed that the defendant’s total income during the above period was about $2.2 million, AIA approved to grant her a signing fee of over $860,000 and released the sum to her when she joined the company in August 2015.
However, ICAC inquiries revealed that the defendant’s total income during the period was about $650,000 and she was only entitled to receive a signing fee of about $100,000. By exaggerating the total income by over $1.5 million, the defendant was granted a signing fee $760,000 higher than her entitlement.
Had AIA known the commission account statements were false, the company would not have employed the defendant.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offence. AIA had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by Senior Assistant Director of Public Prosecutions Alice Chan, assisted by ICAC officer Teresa Cheung.
Lau Kit-yee, 61, former district manager of AIA (International) Limited (AIA), was found guilty of one count of fraud, contrary to Section 16A(1) of the Theft Ordinance.
Judge Mr Eddie Yip Chor-man adjourned the case to May 12 for sentence. The defendant was remanded in the custody of the Correctional Services Department.
The court heard that AIA offered remuneration packages, including signing fees, as incentives to recruit experienced insurance agents. A signing fee was calculated based on the income of a new recruit as shown on his or her income proof statements in the past 24 months.
In June 2015, the defendant was recruited to join AIA. For the purpose of calculating the relevant signing fee, she submitted her commission account statements in relation to another insurance company for the period between June 2013 and May 2015 to AIA.
Based on the commission account statements which purportedly showed that the defendant’s total income during the above period was about $2.2 million, AIA approved to grant her a signing fee of over $860,000 and released the sum to her when she joined the company in August 2015.
However, ICAC inquiries revealed that the defendant’s total income during the period was about $650,000 and she was only entitled to receive a signing fee of about $100,000. By exaggerating the total income by over $1.5 million, the defendant was granted a signing fee $760,000 higher than her entitlement.
Had AIA known the commission account statements were false, the company would not have employed the defendant.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offence. AIA had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by Senior Assistant Director of Public Prosecutions Alice Chan, assisted by ICAC officer Teresa Cheung.