Ex-insurance agent admits $160,000 commissions fraud over bogus policies revealed in ICAC graft probe
2022-10-31
A former insurance agent, charged by the ICAC, today (October 31) admitted at Eastern Magistrates’ Courts that he had defrauded an insurer of commissions of about $160,000 by making false representations that two clients had taken out insurance policies from the insurer. The offences were revealed in the course of a corruption investigation.
Li Ka-yiu, 36, former insurance agent of FWD Life Insurance Company (Bermuda) Limited (FWD), pleaded guilty to two counts of fraud, contrary to Section 16A of the Theft Ordinance.
Magistrate Mr Edward Wong Ching-yu adjourned the case to November 16 for sentence, pending the defendant’s background report. The magistrate said in view of the seriousness of the offences and the amount of commission involved, he ordered the defendant be remanded in the custody of the Correctional Services Department.
The court heard that at the material time, the defendant was an insurance agent of FWD. He would receive a first-year commission when an insurance product was sold. He would also receive various bonuses after meeting his sales target.
The defendant admitted that between July and August, 2019, he had falsely represented to FWD that two clients had applied for two insurance policies and paid the initial premiums. As a result, FWD underwrote and issued the two insurance policies, and released two first-year commissions totalling about $160,000 in relation to the two insurance policies to the defendant.
The ICAC investigation arose from a corruption complaint. Investigation revealed that the two clients did not know the defendant. They did not make the above applications and had never paid any premium for the policies. Had FWD known that the two applications contained any false information, it would not have approved the insurance policies and released the first-year commissions to the defendant.
In addition, the defendant was entitled to a year-end bonus of about $97,000 as the two insurance policies assisted him to meet his sales target. But the defendant was terminated by FWD in February 2020 and the year-end bonus was eventually not released to him.
FWD had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by ICAC officer Alen Ho.
Li Ka-yiu, 36, former insurance agent of FWD Life Insurance Company (Bermuda) Limited (FWD), pleaded guilty to two counts of fraud, contrary to Section 16A of the Theft Ordinance.
Magistrate Mr Edward Wong Ching-yu adjourned the case to November 16 for sentence, pending the defendant’s background report. The magistrate said in view of the seriousness of the offences and the amount of commission involved, he ordered the defendant be remanded in the custody of the Correctional Services Department.
The court heard that at the material time, the defendant was an insurance agent of FWD. He would receive a first-year commission when an insurance product was sold. He would also receive various bonuses after meeting his sales target.
The defendant admitted that between July and August, 2019, he had falsely represented to FWD that two clients had applied for two insurance policies and paid the initial premiums. As a result, FWD underwrote and issued the two insurance policies, and released two first-year commissions totalling about $160,000 in relation to the two insurance policies to the defendant.
The ICAC investigation arose from a corruption complaint. Investigation revealed that the two clients did not know the defendant. They did not make the above applications and had never paid any premium for the policies. Had FWD known that the two applications contained any false information, it would not have approved the insurance policies and released the first-year commissions to the defendant.
In addition, the defendant was entitled to a year-end bonus of about $97,000 as the two insurance policies assisted him to meet his sales target. But the defendant was terminated by FWD in February 2020 and the year-end bonus was eventually not released to him.
FWD had rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by ICAC officer Alen Ho.