An estate agent gave ‘a token of thanks’ to a manager of a listed company who was responsible for property redevelopment for leaking out confidential information.
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Mr To, a manager of a listed company, was responsible for acquiring properties for his company which engaged in property redevelopment. Through his work, Mr To became acquainted with an estate agent Tony who frequently treated Mr To lavish dinners and unconditionally lent him $50,000 to solve his financial difficulties.
One night when they were having dinner, Mr To told Tony some confidential information about the acquisition plan of his listed company. As a token of his gratitude, Tony deposited $100,000 into Mr To’s bank account. Upon receiving the confidential information, Tony immediately arranged for his friends and relatives to rent and buy the premises that were to be acquired soon. Before long, the listed company announced its acquisition plan covering the premises acquired by Tony’s friends. Tony’s friends were granted compensation which were then shared among Tony and his friends. Tony’s scam eventually surfaced and the listed company stopped processing all compensation applications made by Tony’s friends.
Case Analysis
Under Section 9 of the Prevention of Bribery Ordinance (POBO), it would be an offence for Mr To (an employee), without the approval of his employer (the listed company) to accept advantage (i.e. $100,000 offered by Tony) as a reward for leaking out confidential information relating to the company’s property acquisition plan. He had also abused the trust placed on him by his employer for misusing the company’s information for personal gain. Tony might also violate POBO by offering bribes.
Furthermore, according to the Code of Ethics of Estate Agents Authority, estate agents or salespersons shall refrain from activities during their practice which may infringe the law. They shall, in the course of business, provide services to clients with honesty, fidelity and integrity, and protect their clients against fraud, misrepresentation or any unethical practices in connection with real estate transactions. Tony had breached the Code of Ethics for offering bribes and engaging in fraudulent activities in deceiving compensation.
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