Trio charged by ICAC over $220,000 dummy agent commission fraud
2022-7-12
Three persons, including two insurance agents, were charged by the ICAC today (July 12) with conspiracy to defraud an insurer of commissions totalling about $220,000 by making false representations that a number of insurance policies were handled by the two agents.
Wong Chau-ying, 25, and Ho Hang-ching, 28, both former insurance agents of FWD Life Insurance Company (Bermuda) Limited (FWD), and Bernice Yeung, 53, secretary, were charged in two cases.
Wong alone faces three counts of conspiracy to defraud, contrary to Common Law. Ho and Yeung jointly face another similar offence. They were released on ICAC bail, pending their appearance in the Kowloon City Magistrates’ Courts and the Eastern Magistrates’ Courts on Thursday (July 14) for plea respectively.
The alleged offences took place between December 2018 and June 2019. At the material time, Wong and Ho were insurance agents of FWD. Yeung was a secretary employed by a branch manager of FWD, and she was not an employee of FWD.
When an insurance product was sold by an insurance agent of FWD, the relevant handling agent and up-line manager would respectively receive a commission and an overriding commission from the company.
It is alleged that Wong had conspired together with others to defraud FWD by dishonestly falsely representing that two insurance policy applications were genuinely handled by Wong, and two other insurance policy applications, in which he was named as the handling agent, were genuinely made by the relevant policyholders, thereby causing FWD to approve the four applications and release commissions calculated in accordance with the company’s policy.
It is also alleged that Yeung and Ho had conspired with the above branch manager to defraud FWD by dishonestly falsely representing that two insurance policy applications were genuinely handled by Ho, thereby causing FWD to approve the two applications and release commissions calculated in accordance with the company’s policy.
ICAC investigation revealed that FWD approved the above six applications and released commissions of about $150,000 and about $25,000 to Wong and Ho respectively. But it is alleged that the duo were actually not the handling agents of those insurance policies. Commissions totalling about $45,000 were released to their up-line managers in relation to the above insurance policies.
The ICAC investigation arose from a corruption complaint. The three defendants were charged after seeking legal advice from the Department of Justice. As the relevant corruption investigation is continuing, the ICAC does not rule out further law enforcement actions.
FWD has rendered full assistance to the ICAC during its investigation into the case.
Wong Chau-ying, 25, and Ho Hang-ching, 28, both former insurance agents of FWD Life Insurance Company (Bermuda) Limited (FWD), and Bernice Yeung, 53, secretary, were charged in two cases.
Wong alone faces three counts of conspiracy to defraud, contrary to Common Law. Ho and Yeung jointly face another similar offence. They were released on ICAC bail, pending their appearance in the Kowloon City Magistrates’ Courts and the Eastern Magistrates’ Courts on Thursday (July 14) for plea respectively.
The alleged offences took place between December 2018 and June 2019. At the material time, Wong and Ho were insurance agents of FWD. Yeung was a secretary employed by a branch manager of FWD, and she was not an employee of FWD.
When an insurance product was sold by an insurance agent of FWD, the relevant handling agent and up-line manager would respectively receive a commission and an overriding commission from the company.
It is alleged that Wong had conspired together with others to defraud FWD by dishonestly falsely representing that two insurance policy applications were genuinely handled by Wong, and two other insurance policy applications, in which he was named as the handling agent, were genuinely made by the relevant policyholders, thereby causing FWD to approve the four applications and release commissions calculated in accordance with the company’s policy.
It is also alleged that Yeung and Ho had conspired with the above branch manager to defraud FWD by dishonestly falsely representing that two insurance policy applications were genuinely handled by Ho, thereby causing FWD to approve the two applications and release commissions calculated in accordance with the company’s policy.
ICAC investigation revealed that FWD approved the above six applications and released commissions of about $150,000 and about $25,000 to Wong and Ho respectively. But it is alleged that the duo were actually not the handling agents of those insurance policies. Commissions totalling about $45,000 were released to their up-line managers in relation to the above insurance policies.
The ICAC investigation arose from a corruption complaint. The three defendants were charged after seeking legal advice from the Department of Justice. As the relevant corruption investigation is continuing, the ICAC does not rule out further law enforcement actions.
FWD has rendered full assistance to the ICAC during its investigation into the case.