At the Eastern Magistracy, a businessman admitted his role in a fraudulent scheme to collect $700,000 in insurance by falsely claiming that his sister had been struck by thunder and died in the Mainland.

He also submitted false documents to support the bogus claim.

Wong Yiu-tong, 52, pleaded guilty to one count of conspiracy to defraud, and one of attempting to procure the making of an entry in a bank record by deception.

Magistrate Eddie Yip adjourned the case until August 13 for sentencing, and remanded the defendant in the custody of the Correctional Services Department.

The case arose from a corruption complaint, alleging that the defendant might have offered advantages to an insurance agent for helping him submit a death claim. The ICAC uncovered the conspiracy and deception offences.

Defendant took out policy one month before insured's 'death'

The court heard that on July 15, 2002, the defendant took out a $700,000 life/medical insurance policy with MassMutual Asia Limited in the name of Wong Oi-lin, a resident of Qingxin County in Guangdong Province.

According to the application form, the defendant was Wong Oi-lin's elder brother and the sole beneficiary of the policy.

The defendant then conspired with a Chinese man named Zheng Biao and other persons to defraud MassMutual, by falsely representing that the insured person, Wong Oi-lin, was struck by thunder and died in Gaozhou City on August 19, 2002.

To support his claim, the defendant submitted bogus documents, including a death certificate issued by a hospital in Gaozhou City, and two certificates issued by Qingxin County's public security bureau purportedly affirming the cancellation of Wong Oi-lin's residency registration and the defendant's relationship with the deceased.

The defendant also submitted a paper from a funeral parlour in Gaozhou City, purportedly certifying Wong Oi-lin's cremation.