Arrests over mortgage referral fees fraud

Marco Lam

Hong Kong's anti-corruption watchdog arrested 22 people, including 18 bank employees, for allegedly accepting HK$2 million in bribes to assist intermediaries in defrauding mortgage referral fees.

According to the Independent Commission Against Corruption, the bank employees inserted mortgage referral application forms into the mortgage loan application documents, leading unsuspecting clients applying for bank loans to inadvertently sign the forms.

The banks, mistaking these clients for applicants introduced by the intermediaries, then proceeded to pay the referral fees.

The watchdog said the scheme involved over 200 building mortgage applications and affected 100 victims. Sources indicated that the total amount linked to these mortgage loans was approximately HK$700 million, with the largest single application reaching HK$19 million.

The accused, comprising 13 men and nine women aged between 31 and 58, face charges including bribery, money laundering and conspiracy to defraud.

A couple who are among the accused are suspected of accepting HK$600,000 in bribes.

marco.lam@singtaonewscorp.com