ICAC charges superintendent of police over HK$6 million mortgages fraud

Monday, May 03, 2021

Independent Commission Against Corruption (ICAC) charged a superintendent of police today, for deceiving the government and a bank into granting him housing and mortgages loan worth about HK$6 million. 

Lung Siu-chuen, 55, faces two counts of fraud for violating the Theft Ordinance. He was charged of inducing the Treasury and HSBC to grant him a housing loan of about HK$2.1 million and a mortgage loan of HK3.9 million respectively, with intent to defraud. 

Lung joined the police in 1986 and was promoted as a superintendent of police in May 2019. 

He applied for a Government housing loan with the Treasury under the Housing Loan Scheme in September 2016, and made a mortgage loan with HSBC for 60 percent of value of the property, ICAC said. 

The live-in requirement under the scheme is waived as Lung’s application is submitted within 10 years of his statutory age of retirement. Yet the property acquired under the Scheme could only be occupied by the applicant or the applicant’s family. It must not be let or sublet. 

Investigation arose after a complaint was referred to ICAC by the Treasury and later revealed that Lung committed the offences between September 29 and November 30, 2016. 

The first offence alleges that Lung falsely represented in the application for the Scheme that a vacant flat in Discovery Bay would be delivered, and he failed to report to the Treasury that he had signed a tenancy with the tenants. This might affect his entitlement to civil service housing benefits. 

The second offence alleges that Lung falsely represented in a mortgage loan application made with HSBC that the flat would be used by his parents and the flat would be obtained upon completion of transaction, and failed to inform HSBC that he had signed a tenancy agreement. 

The offence might render information given under the relevant application form incorrect or untrue before the drawdown of the loan. 

ICAC added that the police, the Treasury and HSBC have rendered full assistance to ICAC during investigation. 

He has been released on bail and will appear in the Eastern Magistrates’ Courts on Wednesday, ICAC also said.