Duo charged with $19,000 insurance commissions fraud
2018-7-30
A former financial consultant of an insurance company and a former technical representative of an insurance broker have been charged by the ICAC today (July 30) with defrauding two insurance companies of broker commissions totalling over $19,000 by falsely representing that the technical representative was the handling agent of two insurance policies.
Fornia Chan Yin-fei, 37, former financial consultant of the AXA Group, and Li Ting-yuen, 56, former technical representative of an insurance broker, face two joint charges of conspiracy to defraud, contrary to Common Law. Chan alone faces one count of fraud, contrary to Section 16A of the Theft Ordinance.
The defendants will appear in the Eastern Magistracy on Wednesday (August 1) for plea.
The case rose from a corruption investigation. Subsequent ICAC enquiries revealed the above alleged offences.
At the material time, Chan was employed by the AXA Group as financial consultant tasked to promote and sell its insurance products to customers. Li was a registered technical representative of an authorised insurance broker, who could promote products of various insurance companies, including AXA China Region Insurance Company Limited (AXA China) under the AXA Group and Prudential Hong Kong Limited (Prudential).
One of the charges alleges that on July 19, 2012, Chan failed to disclose to a client of the AXA Group that an insurance policy was taken out with the insurance broker as the insurance intermediary and Li as the handling agent for the policy, and with intent to defraud, induced the client to take out the insurance policy provided by Prudential, with the insurance broker as the insurance intermediary, which resulted in benefit to Chan or Li or prejudice to the client.
Another charge alleges that between July 27 and November 19, 2012, Chan and Li conspired together to defraud Prudential by dishonestly and falsely representing that Li was handling agent for the insurance policy application, and causing Prudential to underwrite and issue the policy and to pay commission or other payments in relation to the policy to the insurance broker.
The remaining charge alleges that between September 25 and November 21, 2012, Chan and Li conspired together to defraud AXA China by dishonestly and falsely representing to AXA China that Li was handling agent for another insurance policy application, and causing AXA China to underwrite and issue the insurance policy and to pay commission or other payments in relation to the policy to the insurance broker.
It was suspected that as a result, Prudential and AXA China had respectively released broker commissions of more than $12,000 and over $7,000 to the insurance broker in respect of the above two insurance policies.
The AXA Group and Prudential 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 on Wednesday.
Fornia Chan Yin-fei, 37, former financial consultant of the AXA Group, and Li Ting-yuen, 56, former technical representative of an insurance broker, face two joint charges of conspiracy to defraud, contrary to Common Law. Chan alone faces one count of fraud, contrary to Section 16A of the Theft Ordinance.
The defendants will appear in the Eastern Magistracy on Wednesday (August 1) for plea.
The case rose from a corruption investigation. Subsequent ICAC enquiries revealed the above alleged offences.
At the material time, Chan was employed by the AXA Group as financial consultant tasked to promote and sell its insurance products to customers. Li was a registered technical representative of an authorised insurance broker, who could promote products of various insurance companies, including AXA China Region Insurance Company Limited (AXA China) under the AXA Group and Prudential Hong Kong Limited (Prudential).
One of the charges alleges that on July 19, 2012, Chan failed to disclose to a client of the AXA Group that an insurance policy was taken out with the insurance broker as the insurance intermediary and Li as the handling agent for the policy, and with intent to defraud, induced the client to take out the insurance policy provided by Prudential, with the insurance broker as the insurance intermediary, which resulted in benefit to Chan or Li or prejudice to the client.
Another charge alleges that between July 27 and November 19, 2012, Chan and Li conspired together to defraud Prudential by dishonestly and falsely representing that Li was handling agent for the insurance policy application, and causing Prudential to underwrite and issue the policy and to pay commission or other payments in relation to the policy to the insurance broker.
The remaining charge alleges that between September 25 and November 21, 2012, Chan and Li conspired together to defraud AXA China by dishonestly and falsely representing to AXA China that Li was handling agent for another insurance policy application, and causing AXA China to underwrite and issue the insurance policy and to pay commission or other payments in relation to the policy to the insurance broker.
It was suspected that as a result, Prudential and AXA China had respectively released broker commissions of more than $12,000 and over $7,000 to the insurance broker in respect of the above two insurance policies.
The AXA Group and Prudential 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 on Wednesday.