Three men jailed for conspiracy to defraud

Three men, aged 28, 43, and 44 respectively, were sentenced to 30 months imprisonments for conspiracy to defraud at the District Court today (August 3).

The court heard that the three defendants set up a licensed insurance agent firm in October 2002. Afterwards, the agent firm signed an agency agreement with an insurance company to introduce policyholders for a return of commission.

Since then, the agent firm introduced a total of 789 policyholders to the insurance company and the company managed to pay a total of $17.4 million commission to the agent firm.

Later, almost all of the policyholders ceased to pay the premiums and the agent firm closed down in November 2003, resulting in a net loss of about $4.6 million to the insurance company.

Investigation by Police revealed that that those insurance policies were always offered as complementary gifts or staff benefits and the premium was largely paid by the agent firm.

The three defendants were arrested in September 2005 and charged jointly with one count of conspiracy to defraud. They were convicted as charged in July 2007 and the sentences were handed down today.


Police Report No.3

Ends/Friday, August 3, 2007