The two men, aged 32 and 37, and 38-year-old woman ran three insurance brokerages from 2001 to 2004. Two of them introduced clients to two insurance companies for commission equal to 100% to 138% of the annual premium. They were obliged to return, or "clawback", a specified percentage of these commissions should the policyholders stop their premium payment within 13 to 19 months of the policy subscription.

Since 2001 about 1,600 new clients had been introduced through the brokerages. However, almost all gradually stopped paying. The brokerages closed between April and November 2004 and did not pay the clawback fees of $5 million to the two insurance companies.

Police found the policies were often given away as free gifts, prizes in lucky draws or as staff benefits. The premium was mostly settled by the brokerages without the insurers' knowledge.

The defendants were arrested in November 2004 and convicted at the District Court on August 30.