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Man sentenced for mortgage fraud
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   A 42-year-old man was convicted and sentenced to 31 months¡¯ imprisonment in relation to a mortgage fraud case in District Court today (December 8).

    The court heard that in June 2003, the defendant made a mortgage application for an amount of some $2.07 million to a bank in order to finance the purchase of a residential property in North Point for a purchase price of $2.23 million.

    In support of his mortgage loan application, the defendant submitted a letter of employment and four Mandatory Provident Fund records to the bank, showing that he had been employed as by a company since February 2003 with a monthly salary of HK$29,300.

    In July 2003, the mortgage from the bank was drawn down. The defendant then received cash rebates of $0.53 million and about $0.16 million from the property developer and the bank respectively.

    However, the defendant defaulted to meet the mortgage repayments after making two monthly installments totalling $24,515 to the bank.

    The bank then reported the case to the Police Commercial Crime Bureau (CCB) in May 2004. Enquiries revealed that the defendant was the sole proprietor of the company which ¡°employed¡± him between January and May 2003. The proprietorship was taken over by another person a few days before his mortgage application.

    In addition, the defendant had opened two bank accounts, one in the name of the company and another in his own name. He had arranged the autopay of his purported salary from the company account to his personal account.

    He was arrested by CCB officers in August 2004 and was later charged with one count of obtaining pecuniary advantage by deception, one count of procuring entry in certain records by deception, and three counts of theft.

    The deft pleaded guilty to the charge on December 6, 2006 in the District Court and the sentence was handed down today.

Police Report No. 4

Ends/Friday, December 8, 2006
Issued at HKT 19:47

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