Six and a half years’ jail for property agency director charged by ICAC over $15m fraud in confirmatory sale of two properties
2022-8-31
A property agency director, charged by the ICAC, was today (August 31) sentenced to six and a half years’ imprisonment at the District Court after being convicted of deceiving a couple into paying $15 million more in the confirmatory sale of a shopping centre unit and an industrial building property purchased by the couple.
Ngai Lok-kei, 35, sole director of Wealth Trustful Property Agency Limited (WTPA) and Grand Vision Property Limited (GVP), was found guilty of two charges of fraud, contrary to Section 16A of the Theft Ordinance.
In sentencing, District Judge Josiah Lam Wai-kuen said the defendant had breached the fiduciary duty of an agent. In view of the substantial amount of money involved in this case, the court had to impose a jail term of six and a half years on the defendant.
At the material time, the defendant was an estate agent and the sole director of property agencies WTPA and GVP. He also held the shares of Cheerful Joy Investments Limited (CJI) and Hailey Ventures Limited (HVL).
The court heard that in early October 2014, the owner of a unit of a shopping centre in Kingswood Villas, Tin Shui Wai (the original vendor) put up the unit for sale at $19 million. In mid-October, the defendant arranged the original vendor and CJI, of which he held shares, to sign a provisional agreement for sale and purchase at a price of $19 million with GVP as the handling property agency. CJI later resold the unit to a couple by confirmatory sale.
The defendant falsely represented to the couple in the transaction that the vendor, CJI, offered to sell the property at $32 million, and concealed from the couple his own beneficial interest in CJI. He eventually induced the couple to purchase the property from CJI at $28.56 million, which was $9.56 million more than the original asking price.
The court heard that in December 2014, the defendant further recommended a property at Ka Ming Court in Castle Peak Road, Kowloon to the above couple, and concealed in the transaction that the original vendor of the property offered to sell it at $26 million. HVL, of which the defendant held shares, subsequently purchased the property at $25.92 million, and GVP was the property agency of the transaction.
In addition, the defendant eventually induced the above wife to purchase the property from HVL at about $31.43 million, and caused her to pay about $5.51 million more. WTPA was the property agency of the transaction.
According to the Estate Agents Ordinance, the defendant, being an estate agent, had to disclose to a client his beneficial interest in a property and any benefit which would accrue to him should the property be disposed of.
The investigation arose from a corruption complaint filed with the ICAC. Upon completion of the investigation, legal advice was sought from the Department of Justice, which advised charging the defendant.
The ICAC has been proactively enhancing the knowledge of practitioners in the estate agency sector on the anti-corruption laws, and had reminded them to uphold professional ethics so as to protect the interest of both property owners and buyers.
To assist the estate agency industry to uphold integrity and prevent corruption, the ICAC had collaborated with the industry to compile a guidebook which reminded practitioners to adopt proper and ethical practices in the course of handling property transactions, and assisted estate agencies to put in place effective internal controls preventing corruption and other malpractices. “Best Practice Checklist on Governance and Internal Control of Estate Agencies”: cpas.icac.hk/EN/Info/Lib_List?cate_id=3&id=232.
The prosecution was today represented by prosecuting counsel Marco Li, assisted by ICAC officer Monica Lo.
Ngai Lok-kei, 35, sole director of Wealth Trustful Property Agency Limited (WTPA) and Grand Vision Property Limited (GVP), was found guilty of two charges of fraud, contrary to Section 16A of the Theft Ordinance.
In sentencing, District Judge Josiah Lam Wai-kuen said the defendant had breached the fiduciary duty of an agent. In view of the substantial amount of money involved in this case, the court had to impose a jail term of six and a half years on the defendant.
At the material time, the defendant was an estate agent and the sole director of property agencies WTPA and GVP. He also held the shares of Cheerful Joy Investments Limited (CJI) and Hailey Ventures Limited (HVL).
The court heard that in early October 2014, the owner of a unit of a shopping centre in Kingswood Villas, Tin Shui Wai (the original vendor) put up the unit for sale at $19 million. In mid-October, the defendant arranged the original vendor and CJI, of which he held shares, to sign a provisional agreement for sale and purchase at a price of $19 million with GVP as the handling property agency. CJI later resold the unit to a couple by confirmatory sale.
The defendant falsely represented to the couple in the transaction that the vendor, CJI, offered to sell the property at $32 million, and concealed from the couple his own beneficial interest in CJI. He eventually induced the couple to purchase the property from CJI at $28.56 million, which was $9.56 million more than the original asking price.
The court heard that in December 2014, the defendant further recommended a property at Ka Ming Court in Castle Peak Road, Kowloon to the above couple, and concealed in the transaction that the original vendor of the property offered to sell it at $26 million. HVL, of which the defendant held shares, subsequently purchased the property at $25.92 million, and GVP was the property agency of the transaction.
In addition, the defendant eventually induced the above wife to purchase the property from HVL at about $31.43 million, and caused her to pay about $5.51 million more. WTPA was the property agency of the transaction.
According to the Estate Agents Ordinance, the defendant, being an estate agent, had to disclose to a client his beneficial interest in a property and any benefit which would accrue to him should the property be disposed of.
The investigation arose from a corruption complaint filed with the ICAC. Upon completion of the investigation, legal advice was sought from the Department of Justice, which advised charging the defendant.
The ICAC has been proactively enhancing the knowledge of practitioners in the estate agency sector on the anti-corruption laws, and had reminded them to uphold professional ethics so as to protect the interest of both property owners and buyers.
To assist the estate agency industry to uphold integrity and prevent corruption, the ICAC had collaborated with the industry to compile a guidebook which reminded practitioners to adopt proper and ethical practices in the course of handling property transactions, and assisted estate agencies to put in place effective internal controls preventing corruption and other malpractices. “Best Practice Checklist on Governance and Internal Control of Estate Agencies”: cpas.icac.hk/EN/Info/Lib_List?cate_id=3&id=232.
The prosecution was today represented by prosecuting counsel Marco Li, assisted by ICAC officer Monica Lo.