Former insurance agent Kwok Wah-cheong and three Mainlanders, Liu Yuanming, Gu Zhiyuan and Zhang Zhibiao have admitted making fraudulent insurance claims totalling over $23 million by inflicting eye injuries.

Kwok, 47, Liu, 38, Gu, 34 and Zhang, 35, today pleaded guilty to a total of nine charges, including conspiracy to defraud, possessing forged or identity cards relating to others, breaching a condition of stay, and remaining in Hong Kong after having landed unlawfully.

Deputy Judge Amanda Woodcock adjourned the case to February 6 for mention.

The District Court heard that Kwok, being the mastermind of the scam, took out insurance policies using the names of people who had either lost or sold their identity cards to a criminal syndicate. Kwok then recruited a number of Mainlanders, including Liu and Gu who, with the assistance of Zhang, agreed to inflict injury to their eyes to make false claims.

Between March 31, 2004, and June 15 last year, Kwok, Liu, Gu and Zhang conspired together and with two other people, respectively nicknamed "Ko Lo" and "Ah Loy", to defraud 16 insurance companies. They falsely represented that "Ko Lo", "Ah Loy", Liu and Gu were four other individuals who were the insured of various policies, and that those people had sustained injuries to the eyes caused by accidents.

Had the insurance companies paid the compensation under all the fraudulently applied insurance policies, the potential losses would have amounted to $23.68 million.