Couple charged by ICAC in private residential project subcontractor worker wage fraud case jailed for 18 months
2025-9-30
A couple from a subcontractor of a construction project in Mid-Levels, charged by the ICAC, were today (September 30) sentenced to 18 months’ imprisonment, with the wife’s jail term suspended for 24 months, at the District Court for defrauding the project contractor of almost $9.6 million by falsifying and overstating the wages of workers.
Hon Sang, 53, company secretary of Honsang Company Limited (Honsang); and his wife Ada Law Yin-nei, 49, sole director-cum-shareholder of Honsang, were earlier convicted after trial of two counts of fraud, contrary to section 16A of the Theft Ordinance.
In sentencing, Deputy Judge Miss Veronica Heung Shuk-han remarked that the present case was an isolated one with no significant impact on the construction industry. The court took a starting point of 18 months’ imprisonment while the risk of reoffending for the defendants was low and that their actual gain was $1.1 million. Hon was the main culprit in the case and his wife, Law, only played a minor role. Having considered Law’s mitigating factors, including being required to take care of her ill-health son, her jail term was suspended for 24 months.
The ICAC investigation arose from a corruption complaint regarding the release of wages to workers by Honsang. At the material time, Honsang was a subcontractor of aluminium and glass related works of a private residential construction project on Borrett Road in Mid-Levels. Honsang was required to submit wage payments related documents, including copies of cheques issued to workers and the relevant receipts, to a contractor of the project – CR Construction Company Limited (CR Construction) – for reimbursing expenses on an accountable basis.
The court heard that between September 2018 and April 2019, CR Construction received from Honsang photocopies of over 1,200 cheques and relevant receipts, which purported to show that wages totalling about $30 million were paid to workers. CR Construction consequently settled the entire payment with Honsang.
The ICAC investigation revealed that the payees and the payable amounts in 43 of the cheques, involving a sum of around $9.3 million, were falsified and deposited into bank accounts of the Hon couple and other individuals.
Since Honsang had failed to pay wages to workers on time, CR Construction subsequently made direct payments to workers. Between May and August 2019, the Hon couple had overstated the wages of over 10 workers, causing CR Construction to overpay those workers by almost $300,000. They had also instructed workers to return the wages overpaid by CR Construction to Honsang.
CR Construction rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Susanna Ku, assisted by ICAC officer Andy Yip.
Hon Sang, 53, company secretary of Honsang Company Limited (Honsang); and his wife Ada Law Yin-nei, 49, sole director-cum-shareholder of Honsang, were earlier convicted after trial of two counts of fraud, contrary to section 16A of the Theft Ordinance.
In sentencing, Deputy Judge Miss Veronica Heung Shuk-han remarked that the present case was an isolated one with no significant impact on the construction industry. The court took a starting point of 18 months’ imprisonment while the risk of reoffending for the defendants was low and that their actual gain was $1.1 million. Hon was the main culprit in the case and his wife, Law, only played a minor role. Having considered Law’s mitigating factors, including being required to take care of her ill-health son, her jail term was suspended for 24 months.
The ICAC investigation arose from a corruption complaint regarding the release of wages to workers by Honsang. At the material time, Honsang was a subcontractor of aluminium and glass related works of a private residential construction project on Borrett Road in Mid-Levels. Honsang was required to submit wage payments related documents, including copies of cheques issued to workers and the relevant receipts, to a contractor of the project – CR Construction Company Limited (CR Construction) – for reimbursing expenses on an accountable basis.
The court heard that between September 2018 and April 2019, CR Construction received from Honsang photocopies of over 1,200 cheques and relevant receipts, which purported to show that wages totalling about $30 million were paid to workers. CR Construction consequently settled the entire payment with Honsang.
The ICAC investigation revealed that the payees and the payable amounts in 43 of the cheques, involving a sum of around $9.3 million, were falsified and deposited into bank accounts of the Hon couple and other individuals.
Since Honsang had failed to pay wages to workers on time, CR Construction subsequently made direct payments to workers. Between May and August 2019, the Hon couple had overstated the wages of over 10 workers, causing CR Construction to overpay those workers by almost $300,000. They had also instructed workers to return the wages overpaid by CR Construction to Honsang.
CR Construction rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Susanna Ku, assisted by ICAC officer Andy Yip.