Two Police Sergeants charged by ICAC for allegedly concealing debts in service extension application and swindling credit union loans over $590,000
2024-10-15
The ICAC today (October 15) charged two Police Sergeants in separate cases for allegedly making false declarations regarding their personal debts when applying for extension of retirement age, and defrauding the Hong Kong Police Credit Union (HKPCU) of loans totalling over $590,000 on a number of occasions.
The defendants of two cases are Kwan Ka-chun, 52, Police Sergeant; and Lam Kong-lung, 48, former Police Sergeant, both face one count of agent using document with intent to deceive his principal, contrary to sections 9(3) of POBO. Kwan and Lam also face six counts and one count of fraud respectively, contrary to section 16A of the Theft Ordinance.
The two defendants were released on ICAC bail, pending their appearance at West Kowloon Magistrates’ Courts on Thursday (October 17) for plea.
On 1 April 2021, Hong Kong Police Force (HKPF) launched the “Continued Service of Police Officers Beyond Prescribed Retirement Age Scheme” (the Scheme) which aimed to allow for the prescribed retirement age for serving police officers at non-directorate level to be extended to 60. Each eligible officer was required to declare his financial position when applying for the Scheme, including whether he had any outstanding debts; and any records of bankruptcy or an Individual Voluntary Arrangement (IVA), which refers to a legally binding repayment agreement between a debtor and a creditor.
The ICAC inquiries, arising from a corruption complaint, revealed that the two defendants separately applied for joining the Scheme in April 2021. Both of them had allegedly made false declarations that they had no outstanding debts and had never been subject to IVAs. In fact, at the time of those declarations, the two defendants still had outstanding debts to financial institutions and HKPCU totalling about $450,000 and 240,000 respectively. In addition, they are also suspected of concealing their IVA history.
In addition, between 2018 and 2022, Kwan Ka-chun made various loan applications to HKPCU. It is alleged that in five of those loan applications, Kwan Ka-chun falsely represented that he had not applied for any loan from other banks or financial institutions. When applying for the sixth loan, he allegedly falsely represented that his monthly loan repayments was $6,500 while in fact he was required to repay $13,000 monthly to a financial institution. Through the six loan applications, Kwan Ka-chun was granted loans totalling around $530,000 from HKPCU while he owed outstanding debts ranging from about $340,000 to $620,000 to a financial institution.
Separately, it is alleged that when applying for a loan from HKPCU in July 2018, Lam Kong-lung concealed that he had outstanding debts totalling about $710,000 to two finance institutions at the time, and induced HKPCU to grant him a loan of approximately $62,000.
HKPF and HKPCU have rendered full assistance to the ICAC during its investigation into the case.
The ICAC reminds civil servants and all employees that Section 9(3) of POBO stipulates that it is an offence for any agent, including an employee, to use a document containing a false statement with the intention to deceive his principal, such as his employer. As government employees, civil servants should strictly adhere to laws and regulations and exercise financial prudence to uphold integrity.
The defendants of two cases are Kwan Ka-chun, 52, Police Sergeant; and Lam Kong-lung, 48, former Police Sergeant, both face one count of agent using document with intent to deceive his principal, contrary to sections 9(3) of POBO. Kwan and Lam also face six counts and one count of fraud respectively, contrary to section 16A of the Theft Ordinance.
The two defendants were released on ICAC bail, pending their appearance at West Kowloon Magistrates’ Courts on Thursday (October 17) for plea.
On 1 April 2021, Hong Kong Police Force (HKPF) launched the “Continued Service of Police Officers Beyond Prescribed Retirement Age Scheme” (the Scheme) which aimed to allow for the prescribed retirement age for serving police officers at non-directorate level to be extended to 60. Each eligible officer was required to declare his financial position when applying for the Scheme, including whether he had any outstanding debts; and any records of bankruptcy or an Individual Voluntary Arrangement (IVA), which refers to a legally binding repayment agreement between a debtor and a creditor.
The ICAC inquiries, arising from a corruption complaint, revealed that the two defendants separately applied for joining the Scheme in April 2021. Both of them had allegedly made false declarations that they had no outstanding debts and had never been subject to IVAs. In fact, at the time of those declarations, the two defendants still had outstanding debts to financial institutions and HKPCU totalling about $450,000 and 240,000 respectively. In addition, they are also suspected of concealing their IVA history.
In addition, between 2018 and 2022, Kwan Ka-chun made various loan applications to HKPCU. It is alleged that in five of those loan applications, Kwan Ka-chun falsely represented that he had not applied for any loan from other banks or financial institutions. When applying for the sixth loan, he allegedly falsely represented that his monthly loan repayments was $6,500 while in fact he was required to repay $13,000 monthly to a financial institution. Through the six loan applications, Kwan Ka-chun was granted loans totalling around $530,000 from HKPCU while he owed outstanding debts ranging from about $340,000 to $620,000 to a financial institution.
Separately, it is alleged that when applying for a loan from HKPCU in July 2018, Lam Kong-lung concealed that he had outstanding debts totalling about $710,000 to two finance institutions at the time, and induced HKPCU to grant him a loan of approximately $62,000.
HKPF and HKPCU have rendered full assistance to the ICAC during its investigation into the case.
The ICAC reminds civil servants and all employees that Section 9(3) of POBO stipulates that it is an offence for any agent, including an employee, to use a document containing a false statement with the intention to deceive his principal, such as his employer. As government employees, civil servants should strictly adhere to laws and regulations and exercise financial prudence to uphold integrity.