Government Fund Fraud – You will pay for it

BizMagnet consultant found several news about cases of government fund fraud. Some of the people may be greedy, some may be for the sake of convenience, and result in legal consequence. SMEs applying for the TVP usually offend the “bid rig” under “Competition Ordinance” and criminal offence such as “conspiracy to fraud” and “using a false instrument”. Misconducting TVP agents will also solicit clients by “jetso” and force clients to pay a huge amount afterwards.

Further reading: BUD Fund: Preview 2022

Duo charged with fraud over $290,000 government green funding

The ICAC charged a director and an employee of an air-conditioning system supplier, with conspiracy to defraud the government of $290,000 green funding by providing false statements. In 2008, the Environmental Protection Department launched the Cleaner Production Partnership Programme, implemented by the Hong Kong Productivity Council, to encourage Hong Kong factories to adopt green operation. When the client of the air-conditioning supplier applied for the Programme, the supplier provided 4 false quotations to defraud the HKPC of $290,000. The case will be transferred to the District Court for plea.

Press release: Duo charged with fraud over $290,000 government green funding

First alleged fraud of Anti-epidemic Fund of $2,540,000

The Hong Kong Police received a report of the Anti-epidemic Fund Secretariat that the authority discovered fake claims for Retail Sector Subsidy Scheme etc under the COVID-19 Fund. The 41 suspicious applications involved $2.54 million. After investigation, the police found out that there were no relevant businesses at some addresses, even the flats were not for rentals. 2 men were arrested on 7th July, 2020 and the case is still under investigation.

News: Two Hong Kong men arrested for allegedly filing fake claims to scam HK$2.54 million

The trap of the TVP supplier

TVP Trap

The consultant heard of some cases of misconducting TVP suppliers. They claim to help clients to get “free service” and mix up the TVP and the D-Biz. The attractive slogans move some SMEs which are not familiar with government funding to make the deal immediately. Indeed, that’s a trick. First, these TVP suppliers tell clients to sign an exaggerated contract and promise cashback in the future. Then, they act for the clients as an agency to apply for the TVP. Once the application is approved, the suppliers demand the clients a huge amount to continue the project. At this moment, the applicant has already succeeded the application and chosen the supplier, it is quite hard to cancel the TVP project. A dilemma to the applicant here.

Full story: Think twice before TVP application

Be honest, do business in right way

“Thousands or even millions of government fund is very attractive,” BizMagnet always said. It may arouse greed, while some suppliers and companies produce fake quotation due to the standard procurement procedure. Regardless of whatever reasons, taking illegal actions for government fund application is just stupid. Maybe it is hard to do business now, but don’t forget the integrity, there are always business opportunities. Why does an entrepreneur or a family business owner work hard? We look for a better life, or a career. It will be a pity if we end up at the jail. If you plan to apply for business government fund, and some bad consultants or agencies induce you to take illegal acts, think twice.

Further reading: TVP Fund for Dummies