Duo jailed for accepting $500,000 bribe and fraud over insurance policy
2016-5-6
A former relationship manager of a bank and a former technical representative of an insurance broker, charged by the ICAC, were today (Friday) sent to jail at the District Court for accepting a $500,000 bribe for referring a client to take out an insurance policy with an insurance company and deceiving a commission of over $1.2 million from the insurance company respectively.
Chen Chia-hui, 36, a former relationship manager of the Hongkong and Shanghai Banking Corporation Limited (HSBC), received a jail term of 18 months, while Li Ting-yuen, 54, a former technical representative of CTHK Asset Management Limited (CTHK), was jailed for eight months.
In sentencing, Judge Johnny Chan Jong-herng said Chen’s offence was serious in nature and constituted a serious breach of trust placed on her by HSBC.
The judge said Li failed his duty as a technical representative of an insurance broker and his act had hampered the insurance industry, thus warranting a deterrent sentence.
Chen was earlier found guilty of one count of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance, while Li was convicted of one count of fraud, contrary to Section 16A of the Theft Ordinance.
The court heard that at the material time, Chen was employed by HSBC as relationship manager to perform various duties, including promoting and selling investment and/or insurance products to its clients. But she was not allowed to promote and sell products which were not provided by HSBC.
Li was a technical representative of CTHK, an authorised insurance broker of AXA China Region Insurance Company Limited (AXA). He could promote the insurance products of AXA Group, which includes AXA and AXA China Region Insurance Company (Bermuda) Limited (AXA Bermuda).
The court heard that since June 2011, Chen had been assigned to handle the bank account of a client. Among her friends was a relationship manager of AXA, who was responsible for managing brokers of AXA, including CTHK.
In order to help her friend meet the sales target, Chen promoted an insurance policy of AXA Bermuda to the client in her office at the HSBC headquarters on December 17, 2012.
On the same day, Chen passed the application form signed by the client to her friend. While the application form reached Li at CTHK, Li signed the form as the “financial consultant”, and falsely represented that he was the financial consultant of the insurance policy and had met the client to explain to him the terms and conditions of the insurance policy.
Ten days later, AXA received the application form. Believing that Li was the handling financial consultant of the insurance policy, AXA approved the application and issued the insurance policy to him.
On February 7, 2013, AXA released a commission of over $1.2 million to CTHK in respect of the insurance policy.
Under caution, Chen admitted having accepted $500,000 from her friend after she successfully promoted the insurance policy to the client, the court was told.
HSBC and AXA Group had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Jessie Fu.
Chen Chia-hui, 36, a former relationship manager of the Hongkong and Shanghai Banking Corporation Limited (HSBC), received a jail term of 18 months, while Li Ting-yuen, 54, a former technical representative of CTHK Asset Management Limited (CTHK), was jailed for eight months.
In sentencing, Judge Johnny Chan Jong-herng said Chen’s offence was serious in nature and constituted a serious breach of trust placed on her by HSBC.
The judge said Li failed his duty as a technical representative of an insurance broker and his act had hampered the insurance industry, thus warranting a deterrent sentence.
Chen was earlier found guilty of one count of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance, while Li was convicted of one count of fraud, contrary to Section 16A of the Theft Ordinance.
The court heard that at the material time, Chen was employed by HSBC as relationship manager to perform various duties, including promoting and selling investment and/or insurance products to its clients. But she was not allowed to promote and sell products which were not provided by HSBC.
Li was a technical representative of CTHK, an authorised insurance broker of AXA China Region Insurance Company Limited (AXA). He could promote the insurance products of AXA Group, which includes AXA and AXA China Region Insurance Company (Bermuda) Limited (AXA Bermuda).
The court heard that since June 2011, Chen had been assigned to handle the bank account of a client. Among her friends was a relationship manager of AXA, who was responsible for managing brokers of AXA, including CTHK.
In order to help her friend meet the sales target, Chen promoted an insurance policy of AXA Bermuda to the client in her office at the HSBC headquarters on December 17, 2012.
On the same day, Chen passed the application form signed by the client to her friend. While the application form reached Li at CTHK, Li signed the form as the “financial consultant”, and falsely represented that he was the financial consultant of the insurance policy and had met the client to explain to him the terms and conditions of the insurance policy.
Ten days later, AXA received the application form. Believing that Li was the handling financial consultant of the insurance policy, AXA approved the application and issued the insurance policy to him.
On February 7, 2013, AXA released a commission of over $1.2 million to CTHK in respect of the insurance policy.
Under caution, Chen admitted having accepted $500,000 from her friend after she successfully promoted the insurance policy to the client, the court was told.
HSBC and AXA Group had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Wong Hay-yiu, assisted by ICAC officer Jessie Fu.