Ex-insurance agents charged by ICAC admit $700,000 commission and compensation fraud
2022-7-15
Two former insurance agents, charged by the ICAC, today (July 15) admitted at the District Court that they had deceived an insurer into releasing commissions and compensations totalling about $700,000 by making false representations on the occupations and incomes of nine insurance policy applicants and falsely claimed that they were injured after the insurance policies were successfully taken out.
Leung King-kei 36, former insurance agent of AIA International Limited (AIA), pleaded guilty to five counts of fraud, contrary to Section 16A of the Theft Ordinance; and four counts of conspiracy to defraud, contrary to Common Law.
Co-defendant Yu Shing-yin, 36, former insurance agent of AIA, pleaded guilty to one count of conspiracy to defraud jointly charged with Leung.
Judge Mr Gary Lam Kar-yan adjourned the case to August 5 for sentence and remanded Leung in the custody of the Correctional Services Department. Yu was granted bail till sentencing, pending his community service order report.
The court heard that AIA provided different insurance products to its clients. When processing an application for taking out an insurance policy, AIA would consider the client’s occupation, annual income and medical history, etc.
The offences took place between July 2016 and July 2018. At the material time, Leung was an insurance agent of AIA. After being promoted to unit manager in December 2017, he was entitled to receive overriding commissions. Yu was Leung’s down-line insurance agent.
The court heard that Leung had alone or conspired together with Yu, another down-line insurance agent and four policyholders to defraud AIA by making false representations on the occupations of the policyholders and monthly incomes of nine policyholders in nine insurance policy applications.
AIA approved the nine insurance policy applications and paid commissions totalling about $95,000 to Leung and his down-line insurance agents.
ICAC investigation revealed that false representations were made on the policyholders’ injuries in the relevant insurance claims, causing AIA to release insurance compensations totalling about $600,000 to the policyholders.
The investigation arose from a corruption complaint filed with the ICAC. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charging Leung and Yu. Some of the above policyholders and down-line insurance agents were earlier charged by the ICAC in separate cases and pleaded guilty to their respective charges. The cases are adjourned to mid-August for sentence.
AIA had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by Senior Public Prosecutor Ivan Shiu, assisted by ICAC officer Keaton Ma.
Leung King-kei 36, former insurance agent of AIA International Limited (AIA), pleaded guilty to five counts of fraud, contrary to Section 16A of the Theft Ordinance; and four counts of conspiracy to defraud, contrary to Common Law.
Co-defendant Yu Shing-yin, 36, former insurance agent of AIA, pleaded guilty to one count of conspiracy to defraud jointly charged with Leung.
Judge Mr Gary Lam Kar-yan adjourned the case to August 5 for sentence and remanded Leung in the custody of the Correctional Services Department. Yu was granted bail till sentencing, pending his community service order report.
The court heard that AIA provided different insurance products to its clients. When processing an application for taking out an insurance policy, AIA would consider the client’s occupation, annual income and medical history, etc.
The offences took place between July 2016 and July 2018. At the material time, Leung was an insurance agent of AIA. After being promoted to unit manager in December 2017, he was entitled to receive overriding commissions. Yu was Leung’s down-line insurance agent.
The court heard that Leung had alone or conspired together with Yu, another down-line insurance agent and four policyholders to defraud AIA by making false representations on the occupations of the policyholders and monthly incomes of nine policyholders in nine insurance policy applications.
AIA approved the nine insurance policy applications and paid commissions totalling about $95,000 to Leung and his down-line insurance agents.
ICAC investigation revealed that false representations were made on the policyholders’ injuries in the relevant insurance claims, causing AIA to release insurance compensations totalling about $600,000 to the policyholders.
The investigation arose from a corruption complaint filed with the ICAC. Upon completion of the investigation, the ICAC sought legal advice from the Department of Justice, which advised charging Leung and Yu. Some of the above policyholders and down-line insurance agents were earlier charged by the ICAC in separate cases and pleaded guilty to their respective charges. The cases are adjourned to mid-August for sentence.
AIA had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by Senior Public Prosecutor Ivan Shiu, assisted by ICAC officer Keaton Ma.