Ex-supervisor jailed for accepting $1.2m illegal commission over property transaction
2019-3-28
A former senior sales supervisor of a property agency, charged by the ICAC, was today (March 28) sentenced to 15 months’ imprisonment at the District Court for accepting an illegal commission of over $1.2 million from a then downline estate agent in relation to the transaction of a residential property in Central at more than $590 million.
Chan Yu-fat, 69, former senior sales supervisor of Centaline Property Agency Limited (CPA), was earlier found guilty of one count of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance.
In sentencing, Deputy Judge Ernest Lin Kam-hung said the defendant’s act was detrimental to the business environment of the real estate sector. He incurred a financial loss to CPA and undermined its reputation.
The deputy judge also ordered the defendant to pay over $1.2 million as restitution to CPA.
The court heard that at the material time, the defendant was a senior sales supervisor of CPA attached to its Office Department. He supervised a team of downline estate agents to procure property transactions.
In 2015, the defendant introduced to a downline estate agent his client, who requested them to look for commercial properties for her company. The defendant then asked the downline estate agent to follow up on the matter.
The downline estate agent recommended a residential property in Conduit Road to the client. Accompanied by the defendant and the downline estate agent, the client viewed the property twice.
On December 23, 2015, the client as purchaser and the developer as vendor entered into a preliminary sale and purchase agreement in respect of the property at a consideration of over $590 million. The completion date of this first-hand transaction was April 11, 2016.
The court heard that on June 17, 2016, CPA paid the downline estate agent a sales commission of over $3.3 million, and the defendant an overriding commission of over $1.6 million for the transaction.
After receiving the commission, the downline agent transferred a sum of over $1.2 million from her bank account to the bank account of the defendant on the same day.
According to the policy of CPA, the defendant was not allowed to share the sales commission received by his downline estate agent in respect of the transaction after he was paid the overriding commission for that transaction, the court was told.
CPA had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Bernard Chung, assisted by ICAC officers Cindy Ho and Anita Ma.
Chan Yu-fat, 69, former senior sales supervisor of Centaline Property Agency Limited (CPA), was earlier found guilty of one count of agent accepting an advantage, contrary to Section 9(1)(a) of the Prevention of Bribery Ordinance.
In sentencing, Deputy Judge Ernest Lin Kam-hung said the defendant’s act was detrimental to the business environment of the real estate sector. He incurred a financial loss to CPA and undermined its reputation.
The deputy judge also ordered the defendant to pay over $1.2 million as restitution to CPA.
The court heard that at the material time, the defendant was a senior sales supervisor of CPA attached to its Office Department. He supervised a team of downline estate agents to procure property transactions.
In 2015, the defendant introduced to a downline estate agent his client, who requested them to look for commercial properties for her company. The defendant then asked the downline estate agent to follow up on the matter.
The downline estate agent recommended a residential property in Conduit Road to the client. Accompanied by the defendant and the downline estate agent, the client viewed the property twice.
On December 23, 2015, the client as purchaser and the developer as vendor entered into a preliminary sale and purchase agreement in respect of the property at a consideration of over $590 million. The completion date of this first-hand transaction was April 11, 2016.
The court heard that on June 17, 2016, CPA paid the downline estate agent a sales commission of over $3.3 million, and the defendant an overriding commission of over $1.6 million for the transaction.
After receiving the commission, the downline agent transferred a sum of over $1.2 million from her bank account to the bank account of the defendant on the same day.
According to the policy of CPA, the defendant was not allowed to share the sales commission received by his downline estate agent in respect of the transaction after he was paid the overriding commission for that transaction, the court was told.
CPA had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Bernard Chung, assisted by ICAC officers Cindy Ho and Anita Ma.