Parents' flat used in $2.5m loan scamLocal | Charlotte Luo Feb 13, 2019
A former part-time lifeguard yesterday pleaded guilty to a count of fraud after he used his parents' flat as collateral to borrow HK$2.5 million from a financial company. Bok Yiu-tong, 25, made the application in the name of his parents in 2015, providing an authorization letter. His parents called the police after they received a notice asking them to repay the loan. The District Court heard that Bok told police that he met a female employee from a financial company in 2015. The woman, Yannes, induced him to invest in London Gold. Bok followed the instructions of a man the female employee introduced, named Alson, providing copies of his parents' ID cards and signing documents at law firms Leung & Co, K L and Alan Ho & Co, as well as the financial company, KP Financial Services. He provided four fake documents, including authorization letters and a power of attorney, to use the flat in which he lived with his parents as collateral. KP Financial was deceived and offered a loan of HK$2.5 million, the court heard. The court heard that his parents had owned the flat in Belvedere Garden in Tsuen Wan since 1996. In May 2015, KP Financial Services received a mortgage application from Bok's parents with him acting as guarantor. Attached were letters authorizing Bok to go ahead with the application. KP Financial approved the million. After deducting fees, it handed over two checks for HK$2 million and HK$87,000. After depositing them and withdrawing HK$2 million, Bok claimed he gave HK$230,000 to Yannes to invest in London Gold and HK$1.6 million to Alson. In November that year, KP Financial send a letter to Bok's parents, urging them to repay the loan and interest amounting to HK$2.6 million. After his secondary five education, Bok became a part-time waiter and lifeguard. He had no stable job. Judge Sham Siu-man adjourned the case to March 5 for sentencing. Bok was remanded in custody.