District councillor gets deferred jail term over mortgage fraud
Judge says Hang Seng Bank 'recklessly' granted home loans obtained with false documents
A district councillor who used false documents to obtain HK$6.6 million in mortgages was given a 21-month prison term, suspended for two years, by the District Court yesterday.
Islands District councillor Lam Yuet, 36, the main shareholder and director of Mix Media, admitted during his trial last month that he had used a forged letter to claim he was an employee of the company rather than its director when he applied for two mortgages with Hang Seng Bank in March and April last year.
Lam said he had hidden his shareholdings and tried to convince the bank that he received a regular salary, believing it would make it easier to secure the mortgages.
He pleaded guilty to two counts of obtaining an advantage by deception, and was found guilty on November 4.
But in sentencing yesterday, Judge Josiah Lam Wai-kuen noted that Lam had shown his bank passbook stating other income when applying for the mortgages, but bank staff had failed to notice it and "recklessly" granted him the mortgages.
The judge also said the case was different from other fraud cases because the bank ultimately retained ownership of the properties.
"I accepted Lam was too confused after the election and did something out of character," the judge said. He also took into account that Lam had bought the two flats for his family. If Lam were sent to jail, his wife could not bear the cost of maintaining the loans and Lam's four-year-old daughter and elderly parents could find themselves homeless.