Ex-insurance branch manager sent to jail for 46 months for $52m dummy agent fraud

A former insurance branch manager has been sentenced to 46 months after defrauding two insurers of commissions totaling HK$52 million by dummy insurance agents.

Lo Yin-wa, 32, then branch manager of FWD Life Insurance Company, was sentenced to 46 months behind bars at the District Court today while 10 dummy insurance agents involved in the case received jail terms ranging from 11 to 22 months.

Lo earlier pleaded guilty to 20 charges, including two of conspiracy to defraud and 18 of conspiracy to launder crime proceeds.

Judge Josiah Lam Wai-kuen remarked that Lo persuaded various individuals to pose as dummy insurance agents and used their bank accounts to deal with the incomes related to the insurance policies concerned.

“Lo played a pivotal role in materializing the present case which lasted 51 months,” Lam said.

Ten co-defendants, who admitted the charges, aged between 25 and 61, comprise six insurance agents of Lo’s team in FWD; Kwok Yun-fong, then unit manager of Sun Life Hong Kong, along with her three downline agents.

Sentencing for two other co-defendants who also pleaded guilty to their charges was adjourned to a later date after assisting the prosecution while four other former insurance agents who pleaded not guilty will face trial at District Court on May 12.

The Independent Commission Against Corruption launched an investigation after receiving complaints and revealed that Lo had recruited co-defendants from FWD and Sun Life between 2016 and 2020 to act like dummy insurance agents, who were not required to source any clients after joining the insurers.  

Lo had conspired with other FWD insurance agents to falsely represent that they were handling agents of 272 insurance policy applications, as well as conspiring with Kwok and her team, falsely claiming 206 insurance policy applications in hand.

The two insurers then approved the 478 applications and released over HK$22 million of commissions and allowances to Lo’s team and over HK$29 million to Kwok’s team.

Lo also directed dummy insurance agents to launder crime proceeds of HK$47 million through 23 bank accounts, which are controlled by Lo.

(Ayra Wang)