Kind Year director Yip Wa-ming, 40, has been jailed eight months by the District Court for bribery and fraud, involving a scam to deceive cash compensation from the Urban Renewal Authority over three redevelopment projects.

Property agent Chan Lai-ying, 33, charged by the Independent Commission Against Corruption in the same case, has been ordered to perform 240 hours of community service.

Deputy Judge Robert McNair said a custodial sentence must be imposed on Yip to serve as a deterrence.

Yip earlier admitted one count of offering an advantage to a public servant and one of conspiracy to defraud, while Chan pleaded guilty to seven counts of conspiracy to defraud.

Cash conspiracy

In mid 2002, Yip learned from an assistant manager of the authority that properties in Larch Street and Bedford Road, Tai Kok Tsui, would be resumed for redevelopment.

Yip and Chan jointly purchased a flat for $980,000 in Larch Street and received total compensation of $1,558,500 from the authority. Yip gave the assistant manager $100,000 as reward for providing classified information in relation to the redevelopment project. He also engaged a friend to rent a flat in Bedford Road to obtain resumption compensation.

To get a higher rate of compensation, Yip asked his friend to falsely represent to the authority during an occupancy survey that he did not own other properties. The application of compensation for $494,000 was later halted as a result of the ICAC investigation.

By similar means, Chan conspired with Yip and others to deceive cash compensation totalling $1.675 million in relation to the redevelopment project at Larch Street and Bedford Road, and two other projects at Lee Tung Street, Wan Chai, and Reclamation Street, Mong Kok. However, these false claims were unsuccessful and the authority only released to Chan's associates their entitled compensation totalling $77,600.

The assistant manager had earlier pleaded guilty to a charge of accepting an advantage from Yip and four counts of conspiracy to defraud, and is serving a 32-month jail term.