Ten months’ jail for $100,000 loan fraud
2019-6-19
A former chief financial analysis manager of a financial intermediary, charged by the ICAC, was today (June 19) sentenced to 10 months’ imprisonment at the District Court for conspiring with a former direct sales representative of a bank to deceive the bank into granting a loan of over $100,000 to an applicant referred by the financial intermediary.
Ng Siu-lun, 32, former chief financial analysis manager of Quinaray Development Company Limited (QDCL), was earlier found guilty of one count of conspiracy to defraud, contrary to Common Law.
In sentencing, Judge Frankie Yiu Fun-che reprimanded Ng and the former direct sales representative for devising a scam allowing a financial intermediary to charge a loan applicant of an excessive service fee.
The case arose from a corruption complaint referred by DBS Bank (Hong Kong) Limited (DBS Bank). Subsequent ICAC enquiries revealed the above offence.
The court heard that at the material time, Ng was a chief financial analysis manager of QDCL, a financial intermediary, who was tasked to arrange for potential loan applicants to apply for loans from financial institutions, including DBS Bank.
DBS Bank prohibited its direct sales representatives from acquiring loan applications by cold calls and accepting referrals from financial intermediaries as a measure to protect the interests of the bank and its customers.
On October 26, 2015, upon receipt of QDCL’s cold call, a loan applicant attended its office to submit his personal information and financial supporting documents for arranging loan application. He was received by Ng who did a financial analysis with him and informed him that QDCL would charge 20 per cent of the loan amount as a service fee for securing a better interest rate.
Subsequently, the loan applicant received a call from Ng who notified him that DBS Bank was arranged to process his loan application, and a follow-up call would be made by Yip Kin-ming, then direct sales representative of DBS Bank.
Ng also reminded the loan applicant that he should not mention to DBS Bank that he was referred by a financial intermediary.
Eventually, the loan applicant secured a personal loan of $107,000 from DBS Bank and the bank released an incentive commission of $3,424 to Yip. Meanwhile, the loan applicant settled a service fee totalling $21,400 with QDCL.
Had DBS Bank known that the loan applicant was referred by a financial intermediary, the bank would not have processed the loan application.
Yip, 41, was also charged by the ICAC for defrauding DBS Bank of loans totalling about $1.5 million including seven other applicants and commissions amounting to over $56,000 by similar fraudulent means. He was sentenced to 14 months’ imprisonment at the District Court after pleading guilty to seven counts of fraud, contrary to Section 16A of the Theft Ordinance.
DBS Bank had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Fu Chong-sang, assisted by ICAC officer Hayley Lau.
Ng Siu-lun, 32, former chief financial analysis manager of Quinaray Development Company Limited (QDCL), was earlier found guilty of one count of conspiracy to defraud, contrary to Common Law.
In sentencing, Judge Frankie Yiu Fun-che reprimanded Ng and the former direct sales representative for devising a scam allowing a financial intermediary to charge a loan applicant of an excessive service fee.
The case arose from a corruption complaint referred by DBS Bank (Hong Kong) Limited (DBS Bank). Subsequent ICAC enquiries revealed the above offence.
The court heard that at the material time, Ng was a chief financial analysis manager of QDCL, a financial intermediary, who was tasked to arrange for potential loan applicants to apply for loans from financial institutions, including DBS Bank.
DBS Bank prohibited its direct sales representatives from acquiring loan applications by cold calls and accepting referrals from financial intermediaries as a measure to protect the interests of the bank and its customers.
On October 26, 2015, upon receipt of QDCL’s cold call, a loan applicant attended its office to submit his personal information and financial supporting documents for arranging loan application. He was received by Ng who did a financial analysis with him and informed him that QDCL would charge 20 per cent of the loan amount as a service fee for securing a better interest rate.
Subsequently, the loan applicant received a call from Ng who notified him that DBS Bank was arranged to process his loan application, and a follow-up call would be made by Yip Kin-ming, then direct sales representative of DBS Bank.
Ng also reminded the loan applicant that he should not mention to DBS Bank that he was referred by a financial intermediary.
Eventually, the loan applicant secured a personal loan of $107,000 from DBS Bank and the bank released an incentive commission of $3,424 to Yip. Meanwhile, the loan applicant settled a service fee totalling $21,400 with QDCL.
Had DBS Bank known that the loan applicant was referred by a financial intermediary, the bank would not have processed the loan application.
Yip, 41, was also charged by the ICAC for defrauding DBS Bank of loans totalling about $1.5 million including seven other applicants and commissions amounting to over $56,000 by similar fraudulent means. He was sentenced to 14 months’ imprisonment at the District Court after pleading guilty to seven counts of fraud, contrary to Section 16A of the Theft Ordinance.
DBS Bank had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by prosecuting counsel Fu Chong-sang, assisted by ICAC officer Hayley Lau.