SIX AGENTS AND THREE OTHERS ON TRIAL IN HK FOR FRAUD

Six insurance agents and thee others are on trial in the Hong Kong District Court on charges of conspiracy to defraud and obtaining advantage by deception. The accused are alleged to have taken out a combined 268 life policies with Pacific Century, which would have generated HK$4.11m ($526,000) in premiums a year, in return for commission of HK$3.8m. Prosecutor John Dunn said that the scheme involved the use of false personal particulars. He reported that Pacific Century noticed in October 2005 that four agents were generating an unusual amount of business. Their contracts were terminated and the matter was referred to the police. It is alleged that many of the policyholders never applied for a policy at all, while many others were given policies for free.