Ex-insurance director guilty of $4.4m signing fee fraud
2016-10-28
A former district director of an insurance company, charged by the ICAC, was today (October 28) convicted at the District Court of having defrauded the company of a signing fee amounting to over $4.4 million with false income-proof documents.
Johnny Wong Chou, 45, former district director of American International Assurance Company (Bermuda) Limited (AIA), now known as AIA International Limited (AIA International), was found guilty of one count of fraud, contrary to Section 16A of the Theft Ordinance.
Deputy Judge Ms Bina Chainrai adjourned the case to November 14 this year for sentence, pending a background report. The defendant was remanded in the custody of the Correctional Services Department.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offence.
The court heard that between April 2002 and April 2011, the defendant worked in Manulife (International) Limited (Manulife), an insurance company. In November 2010, he was invited by AIA to join the company.
AIA offers recruitment packages to new recruits. Among the recruitment packages is a signing fee calculated on the average annual income of a new recruit in the past 24 months.
During the negotiation with AIA, the defendant was asked to submit his income proof documents in the past 24 months to enable the company to calculate the recruitment package for him.
The court heard that the defendant then provided AIA with three statements of agent’s account and a notification of remuneration recording the income during his employment with Manulife.
Believing that all the documents provided by the defendant were genuine, AIA worked out that his total income and average annual income between December 2008 and November 2010 were over $5.8 million and almost $3 million respectively.
AIA finally approved to offer the defendant a signing fee of over $4.4 million, which was 150 per cent of his average annual income in the aforesaid period.
Investigations revealed that the true total income of the defendant during the aforesaid period was only about $4 million, which was about $1.8 million less than the total income stated in income proof documents he provided to AIA.
Had AIA known the income proof documents provided by the defendant were false or contained any false information, it would not have approved and released the signing fee of over $4.4 million to him, the court was told.
AIA International and Manulife had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Phil Chau, assisted by ICAC officer Victor Lee.
Johnny Wong Chou, 45, former district director of American International Assurance Company (Bermuda) Limited (AIA), now known as AIA International Limited (AIA International), was found guilty of one count of fraud, contrary to Section 16A of the Theft Ordinance.
Deputy Judge Ms Bina Chainrai adjourned the case to November 14 this year for sentence, pending a background report. The defendant was remanded in the custody of the Correctional Services Department.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above offence.
The court heard that between April 2002 and April 2011, the defendant worked in Manulife (International) Limited (Manulife), an insurance company. In November 2010, he was invited by AIA to join the company.
AIA offers recruitment packages to new recruits. Among the recruitment packages is a signing fee calculated on the average annual income of a new recruit in the past 24 months.
During the negotiation with AIA, the defendant was asked to submit his income proof documents in the past 24 months to enable the company to calculate the recruitment package for him.
The court heard that the defendant then provided AIA with three statements of agent’s account and a notification of remuneration recording the income during his employment with Manulife.
Believing that all the documents provided by the defendant were genuine, AIA worked out that his total income and average annual income between December 2008 and November 2010 were over $5.8 million and almost $3 million respectively.
AIA finally approved to offer the defendant a signing fee of over $4.4 million, which was 150 per cent of his average annual income in the aforesaid period.
Investigations revealed that the true total income of the defendant during the aforesaid period was only about $4 million, which was about $1.8 million less than the total income stated in income proof documents he provided to AIA.
Had AIA known the income proof documents provided by the defendant were false or contained any false information, it would not have approved and released the signing fee of over $4.4 million to him, the court was told.
AIA International and Manulife had rendered full assistance to the ICAC during its investigation.
The prosecution was today represented by prosecuting counsel Phil Chau, assisted by ICAC officer Victor Lee.