ICAC arrests 22 on the fiddle involving mortgage referrals and bribery

Hong Kong’s anti-corruption watchdog arrested 22 people, including 18 bank employees, for 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 700 million, with the largest single application reaching 19 million.

The 22 individuals arrested, comprising 13 men and 9 women aged between 31 and 58, face charges including bribery, money laundering, and conspiracy to defraud.

The ICAC said two of the arrestees, a couple, are suspected of accepting HK$600,000 in bribes alone.

The investigation also revealed a bank employee had received over HK$100,000 in bribes from intermediaries to help falsify employment proof in building mortgage applications.

An investigation is ongoing and further arrests have not been ruled out.