Trio charged with $146,000 extra commission fraud over sale of first-hand residential flat
2018-7-4
Three estate agents have been charged by the ICAC with conspiracy to defraud a property developer of an extra commission totalling over $146,000 in relation to the sale of a first-hand flat at a private residential estate in Central.
Erica Lau Ka-yee, 37, sales manageress of Midland Realty International Limited (Midland); Fung Kwok-ki, 42, assistant associate director of Midland; and Lee Chung-yin, 48, senior district sales director of Midland, who were charged yesterday (July 3), face a joint charge of conspiracy to defraud, contrary to Common Law.
The defendants will appear in the Eastern Magistracy tomorrow (July 5) for plea.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offence.
At the material time, Lau was posted to a branch of Midland in Central. Lau’s supervisor was Fung, who was supervised by Lee. They were responsible for procuring property transactions for clients of Midland.
In April 2016, Midland was engaged by Henderson Property Agency Limited (Henderson) to sell first-hand flats at a private residential estate in Robinson Road, Central. Henderson agreed to pay Midland 4% of the purchase price of a flat as commission for each completed transaction. On April 6, 2016, a buyer purchased a flat at over $39 million.
The charge alleges that between April 6 and December 12, 2016, the defendants conspired together to defraud Henderson by dishonestly:
(i) falsely representing to Henderson that a cash rebate of $1.36 million would be given to the buyer for purchasing the flat at the residential estate by Midland;
(ii) inducing Henderson to increase the commission to be paid to Midland for the sale of the flat to 4.375% of its purchase price; and
(iii) causing Henderson Finance Company Limited to pay an extra commission in the sum of over $146,000 to Midland.
Henderson Land Development Company Limited and Midland have rendered full assistance to the ICAC during its investigation into the case.
The defendants have been released on ICAC bail, pending their court appearance tomorrow.
Erica Lau Ka-yee, 37, sales manageress of Midland Realty International Limited (Midland); Fung Kwok-ki, 42, assistant associate director of Midland; and Lee Chung-yin, 48, senior district sales director of Midland, who were charged yesterday (July 3), face a joint charge of conspiracy to defraud, contrary to Common Law.
The defendants will appear in the Eastern Magistracy tomorrow (July 5) for plea.
The case arose from a corruption complaint. Subsequent ICAC enquiries revealed the above alleged offence.
At the material time, Lau was posted to a branch of Midland in Central. Lau’s supervisor was Fung, who was supervised by Lee. They were responsible for procuring property transactions for clients of Midland.
In April 2016, Midland was engaged by Henderson Property Agency Limited (Henderson) to sell first-hand flats at a private residential estate in Robinson Road, Central. Henderson agreed to pay Midland 4% of the purchase price of a flat as commission for each completed transaction. On April 6, 2016, a buyer purchased a flat at over $39 million.
The charge alleges that between April 6 and December 12, 2016, the defendants conspired together to defraud Henderson by dishonestly:
(i) falsely representing to Henderson that a cash rebate of $1.36 million would be given to the buyer for purchasing the flat at the residential estate by Midland;
(ii) inducing Henderson to increase the commission to be paid to Midland for the sale of the flat to 4.375% of its purchase price; and
(iii) causing Henderson Finance Company Limited to pay an extra commission in the sum of over $146,000 to Midland.
Henderson Land Development Company Limited and Midland have rendered full assistance to the ICAC during its investigation into the case.
The defendants have been released on ICAC bail, pending their court appearance tomorrow.