Defendant charged by ICAC in dummy insurance agents commissions fraud case faces 19 additional charges
2023-2-21
The ICAC has earlier charged 18 people with conspiracy to defraud and money laundering, revealed during the course of a corruption investigation, for allegedly taking part in a dummy insurance agents scam to defraud two insurers of commissions by making false representations that they had handled a few hundred insurance policies. The commissions involved in the scam increased to about $50 million after 19 additional charges were laid against a defendant when she appeared in the Eastern Magistrates’ Courts today (February 21).
Lo Yin-wa, 30, former branch manager of FWD Life Insurance Company (Bermuda) Limited (FWD), was charged in June 2022 with one count of conspiracy to defraud, contrary to Common Law. Upon further legal advice from the Department of Justice, 19 additional charges were laid against her today – one of conspiracy to defraud; and 18 of conspiracy to deal with property known or believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance and Section 159A(1) the Crimes Ordinance.
Seventeen other defendants, aged between 23 and 59, who were 10 then insurance agents of FWD, a then unit manager of Sun Life Hong Kong Limited (Sun Life HK) and her six down-line insurance agents, were charged in another case in October last year with 17 charges – two of conspiracy to defraud and 15 of conspiracy to launder crime proceeds.
Magistrate Mr Lam Tsz-kan allowed the prosecution’s application for consolidating the two cases. The 18 defendants now face a total of 20 charges, namely two of conspiracy to defraud and 18 of conspiracy to launder crime proceeds, involving 478 insurance policies and commissions totalling about $50 million.
No plea was taken today. The defendants were granted bail. The magistrate transferred the case to the District Court for plea on March 14.
The alleged offences took place between February 2016 and November 2020. At the material time, FWD branch manager Lo and the above 10 FWD insurance agents worked in the same team, while the remaining seven defendants worked under the same team in Sun Life HK. Except Lo, her husband cum FWD insurance agent Kwok Ho-leung and Sun Life HK unit manager Kwok Yun-fong, the remaining 15 co-defendants were said to be dummy insurance agents.
It is alleged that Lo, Kwok Ho-leung, Kwok Yun-fong and the six then Sun Life HK insurance agents conspired together and with others to defraud Sun Life HK. They allegedly made false representations to Sun Life HK that the six people were the respective handling agents of 206 insurance policy applications; and caused the insurer to approve the applications and to pay commissions, incentives, bonuses and allowances to Kwok Yun-fong’s team.
Lo, Kwok Ho-leung and the nine then FWD insurance agents are alleged to have conspired together and with others to defraud FWD. They allegedly falsely represented to FWD that 12 then insurance agents of FWD, including the nine people, were the respective handling agents of 272 insurance policy applications; and caused the insurer to approve the applications and to pay commissions, incentives, bonuses and allowances to Lo and the 12 persons.
It is also alleged that Lo had separately conspired with the 15 co-defendants and the three others to launder crime proceeds in relation to the scam totalling about $47 million in 23 bank accounts of them.
The ICAC investigation arose from a corruption complaint. Enquiries revealed that Lo had allegedly recruited Kwok Yun-fong and others to join either Sun Life HK or FWD, and she told some of them that they were not required to source any clients.
The above 478 insurance policy applications mostly involved high commission rate insurance products. After approving most of the applications, Sun Life HK and FWD respectively released commissions, incentives, bonuses and allowances totalling over $29 million and over $20 million to the 15 co-defendants and the trio who purportedly handled them and their up-line managers, including Lo and Kwok Yun-fong. Had Sun Life HK and FWD known that the 15 co-defendants and the three others were not the handling agents of those insurance policies, they would not have released the above commissions, incentives, bonuses and allowances.
The bank accounts used for receiving the above commissions, etc. were allegedly controlled by Lo. Most of the insurance policies concerned eventually lapsed after subsequent premiums were not paid.
As the relevant corruption investigation is continuing, the ICAC does not rule out further law enforcement actions.
FWD and Sun Life HK have rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by Senior Public Prosecutor Joey Lin, assisted by ICAC officer Benny Chang.
Lo Yin-wa, 30, former branch manager of FWD Life Insurance Company (Bermuda) Limited (FWD), was charged in June 2022 with one count of conspiracy to defraud, contrary to Common Law. Upon further legal advice from the Department of Justice, 19 additional charges were laid against her today – one of conspiracy to defraud; and 18 of conspiracy to deal with property known or believed to represent proceeds of an indictable offence, contrary to Section 25(1) of the Organized and Serious Crimes Ordinance and Section 159A(1) the Crimes Ordinance.
Seventeen other defendants, aged between 23 and 59, who were 10 then insurance agents of FWD, a then unit manager of Sun Life Hong Kong Limited (Sun Life HK) and her six down-line insurance agents, were charged in another case in October last year with 17 charges – two of conspiracy to defraud and 15 of conspiracy to launder crime proceeds.
Magistrate Mr Lam Tsz-kan allowed the prosecution’s application for consolidating the two cases. The 18 defendants now face a total of 20 charges, namely two of conspiracy to defraud and 18 of conspiracy to launder crime proceeds, involving 478 insurance policies and commissions totalling about $50 million.
No plea was taken today. The defendants were granted bail. The magistrate transferred the case to the District Court for plea on March 14.
The alleged offences took place between February 2016 and November 2020. At the material time, FWD branch manager Lo and the above 10 FWD insurance agents worked in the same team, while the remaining seven defendants worked under the same team in Sun Life HK. Except Lo, her husband cum FWD insurance agent Kwok Ho-leung and Sun Life HK unit manager Kwok Yun-fong, the remaining 15 co-defendants were said to be dummy insurance agents.
It is alleged that Lo, Kwok Ho-leung, Kwok Yun-fong and the six then Sun Life HK insurance agents conspired together and with others to defraud Sun Life HK. They allegedly made false representations to Sun Life HK that the six people were the respective handling agents of 206 insurance policy applications; and caused the insurer to approve the applications and to pay commissions, incentives, bonuses and allowances to Kwok Yun-fong’s team.
Lo, Kwok Ho-leung and the nine then FWD insurance agents are alleged to have conspired together and with others to defraud FWD. They allegedly falsely represented to FWD that 12 then insurance agents of FWD, including the nine people, were the respective handling agents of 272 insurance policy applications; and caused the insurer to approve the applications and to pay commissions, incentives, bonuses and allowances to Lo and the 12 persons.
It is also alleged that Lo had separately conspired with the 15 co-defendants and the three others to launder crime proceeds in relation to the scam totalling about $47 million in 23 bank accounts of them.
The ICAC investigation arose from a corruption complaint. Enquiries revealed that Lo had allegedly recruited Kwok Yun-fong and others to join either Sun Life HK or FWD, and she told some of them that they were not required to source any clients.
The above 478 insurance policy applications mostly involved high commission rate insurance products. After approving most of the applications, Sun Life HK and FWD respectively released commissions, incentives, bonuses and allowances totalling over $29 million and over $20 million to the 15 co-defendants and the trio who purportedly handled them and their up-line managers, including Lo and Kwok Yun-fong. Had Sun Life HK and FWD known that the 15 co-defendants and the three others were not the handling agents of those insurance policies, they would not have released the above commissions, incentives, bonuses and allowances.
The bank accounts used for receiving the above commissions, etc. were allegedly controlled by Lo. Most of the insurance policies concerned eventually lapsed after subsequent premiums were not paid.
As the relevant corruption investigation is continuing, the ICAC does not rule out further law enforcement actions.
FWD and Sun Life HK have rendered full assistance to the ICAC during its investigation into the case.
The prosecution was today represented by Senior Public Prosecutor Joey Lin, assisted by ICAC officer Benny Chang.