Ex-manager of insurance broker charged as ICAC probe reveals referral fee fraud
The ICAC today (June 21) charged a former sales manager of an insurance broker for allegedly deceiving the firm into paying referral fees totalling over $25,000 to her husband by making false representations that he was the referrer of 25 insurances policies taken out by a number of clients.
Anny Pang Wai-chun, 52, former sales manager of Cinergy Insurance Services Limited (Cinergy), faces 10 counts of fraud, contrary to Section 16A of the Theft Ordinance.
The ICAC investigation arose from a corruption complaint. Upon completion of the investigation, the Commission sought legal advice from the Department of Justice, which advised charging the defendant. She was released on ICAC bail, pending her appearance in the Eastern Magistrates’ Courts on Thursday (June 23) for plea.
At the material time, Cinergy was an insurance broker which assisted clients in taking out various insurance policies, including employees’ compensation, public liability and vehicles insurance. For insurance policies successfully taken out, Cinergy would receive commissions from the relevant insurance companies.
Cinergy allowed its sales managers to recruit referrers for client referral. For each successful referral, Cinergy would pay the referrer a referral fee. In April 2018, the defendant recruited her husband as a referrer.
The charges allege that between July 2018 and August 2020, the defendant, by falsely representing to Cinergy that her husband was the referrer of 25 policies taken out by 10 policyholders, and with intent to defraud, induced Cinergy to pay referral fees to her husband in relation to those policies.
ICAC investigation revealed that Cinergy had released referral fees totalling over $25,000 to the defendant’s husband for the above 25 policies.
Cinergy has rendered full assistance to the ICAC during its investigation into the case.