Hong Kong News Hub: Hong Kong pro-democracy ex-district councillors among 4 arrested on fraud charges

Four more people have been arrested over complaints related to allegedly selling pension funds without a valid license, including at least three former democratic district councillors turned insurance agents.

Following the arrest of Derek Chu, a democrat and former Mong Kong district councillor, on Tuesday over allegedly promoting and selling Mandatory Provident Fund (MPF) schemes without a valid license, four more people were apprehended on fraud charges on Wednesday and Thursday.

Former district councillor Yeung Yuk (left) is arrested by police and brought to Manulife Financial Centre, Kwun Tong on October 19, 2023. Photo: Kyle Lam/HKFP. — Former district councillor Yeung Yuk (left) outside Manulife Financial Centre, Kwun Tong, Hong Kong, on October 19, 2023. Photo: Kyle Lam/HKFP.

After further investigation, police said Chu was suspected of involving in a separate charge of fraud. He was later released bail without charge.

Among those arrested on Tuesday and Wednesday were Yeung Yuk and Sunny Chiu, both former democratic district councillors, a person with knowledge of the matter told HKFP. The remaining two were sons of Janet Ng, current vice chairman of Sham Shui Po District Council and a former member of pro-democracy Civic Party.

In response to enquiries by HKFP, police said they had received complaints regarding individuals promoting MPF schemes on social media and during events without a valid MPF intermediary license.

Former district councillor Sunny Chiu (second from left) is arrested by police brought to Manulife Financial Centre, Kwun Tong on October 19, 2023. Photo: Kyle Lam/HKFP. — Former district councillor Sunny Chiu (second from left) is escorted by police to Manulife Financial Centre, Kwun Tong, Hong Kong, on October 19, 2023. Photo: Kyle Lam/HKFP.

Police confirmed they arrested four men aged 31 to 38 on Wednesday and Thursday on suspicion of conspiracy to defraud and fraud. Their homes and offices were searched with a warrant, and documents and digital devices were seized.

Chiu’s girlfriend updated his Facebook page on Wednesday afternoon, saying that Chiu was at a police station with his lawyer. “Please allow us some time and space… We have taken note of your concern. Please wait for him to be released before we report on his safety,” the Chinese-language post.

Chu Kong-wai june 4 2022 goddess of democracy — Former Yau Tsim Mong district councillor Chu Kong-wai distributed electronic candles on June 4, which marked the 33rd anniversary of the Tiananmen Square crackdown in 1989. File photo: HKFP.

Democrats won a landslide victory in the 2019 District Council election, taking control of 17 out of the city’s 18 district bodies. However, many pro-democracy district councillors left their positions in 2021 after a new oath was introduced to weed out “unpatriotic” representatives.

Some former district councillors later turned to other occupations, becoming insurance agents and financial advisors.

A man is arrested by police on October 19, 2023. Photo: Kyle Lam/HKFP. — A man, who is the son of democratic district councillor Janet Ng, is arrested by police on October 19, 2023. Photo: Kyle Lam/HKFP.

According to InMedia, Yeung, the former chairman of Sham Shui Po District Councillor, joined multinational company Manulife as an insurance agent a few months after quitting as a district councillor in 2021.

He also worked with other ex-district councillors who also become insurance agents, including Chiu, to form a “community financial planning team” to serve residents in Sham Shui Po.

Yeung said they focused on educating low-income workers about MPF, as many lacked knowledge of the pension fund scheme.

Derek Chu, a democrat and former Mong Kong district councillor is arrested on October 17, 2023. Photo: Supply.

According to Chiu’s Instagram account, he is a financial planner for Manulife and also a real estate agent.

According to the Mandatory Provident Fund Scheme Authority (MPFA), individuals must pass qualifying examinations and be registered by the MPFA to sell MPF. Companies should make sure their employees involved in MPF sales have passed the relevant exams and completed registration.

HKFP has reached out to Manulife and MPFA for comment.

‘Soft resistance’

Promoting MPF sales at a community level was attacked by pro-establishment figures late last month.

district council election november 11 (16) — Residents celebrate after Junius Ho lost his seat at the 2019 District Council election. Photo: Galileo Cheng/HKFP.

Dominic Lee, a member of the pro-establishment New People’s Party, said in a commentary published by state-backed Chinese-language newspaper Wen Wei Po that some former district councillors were “lurking in the community under the guise of selling insurance and dealing with MPF accounts for residents.”

Lee accused this of being “soft resistance”, a vague term used by government officials and pro-establishment figures to condemn activities deemed to be against the local government or Beijing.

“[Authorities] should closely monitor the activities of this so-called ‘community work’ by anti-China rioters in Hong Kong, ” Lee wrote. “If any illegal activities are detected, law enforcement actions should be taken immediately. “

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