Property officer charged by ICAC sentenced to one year in prison for fraud over $670,000 private estate maintenance works

A property officer of a property management company, charged by the ICAC, was sentenced to one year’s imprisonment after admitting at the Eastern Magistrates’ Courts today (December 4) that he had secured various minor works of a residential estate worth totalling about $670,000 by concealing his conflicting interest.

Lui Kien-fat, 71, former property officer of Kong Shum Union Property Management Company Limited (Kong Shum, now renamed as Kong Shum Smart Management Services Limited (Kong Shum Smart Management Services), pleaded guilty to two counts of fraud, contrary to section 16A of the Theft Ordinance.

In sentencing, Principal Magistrate Mr David Cheung Chi-wai remarked that the case was serious in nature and the defendant had breached the trust placed in him. Holding a key position in the residential estate, the defendant had abused his authority for personal gain, defrauding the Incorporated Owners (IO) of the residential estate to secure works contracts.

At the material time, Kong Shum provided property management services to Sun Sing Centre, a private residential estate in Shau Kei Wan. The defendant was employed by Kong Shum and posted to Sun Sing Centre to assist its IO in handling procurement matters and overseeing contractors. Kong Shum required its employees to declare conflict of interest in relation to contractors.

The court heard that the defendant had concealed from the IO of Sun Sing Centre that he was the significant controller of New Century (EMC) Limited (New Century), and induced the IO to award contracts and pay service fees totalling over $290,000 to New Century for installation of an energy-efficient lighting system.

The defendant had also concealed from Sun Sing Centre’s IO that he had financial interests in Kwan Kee Engineering Co. (Kwan Kee) to deceive the IO into settling works payments totalling about $380,000 to Kwan Kee for 27 minor maintenance works awarded to it.

ICAC enquiries revealed that New Century and Kwan Kee, both set up by the defendant, were directly or indirectly controlled by him at the material time.

The IO of Sun Sing Centre and Kong Shum Smart Management Services rendered full assistance to the ICAC during its investigation into the case.

The prosecution was today represented by ICAC officer Dominic Sung.