Veteran Fraud Fighter Tony Kwok Imparts Important Life Lessons

Now in his seventies, Tony Kwok has settled nicely into retirement after spending decades successfully fighting corruption and wrongdoing in his native Hong Kong and in other parts of the world. Even though he’s no longer actively fighting fraud, he still has some important life lessons for aspiring fraud examiners.

Kwok is the former deputy commissioner of the Independent Commission Against Corruption (ICAC), the anti-graft agency that is largely credited with transforming Hong Kong into one of the least corrupt places in the world. The ICAC is now held up as an example to emulate among countries battling endemic fraud and corruption. And Kwok, who was there from the organization’s inception, has become a highly respected expert in the field as he continues to impart valuable advice to anti-fraud professionals the world over.  

“I urge [everyone], particularly those in developing countries with corruption problems, to consider using your expertise to fight corruption so that when you are in your 70s, you can be like me and feel so much satisfaction with your life,” Kwok said. 

The ACFE honored Kwok’s life-long fight against wrongdoing at the opening session of the 33rd Annual ACFE Global Fraud Conference, where he was given the Cressey Award; an award bestowed by the ACFE annually for a lifetime of achievement in the detection and deterrence of fraud. “I am very grateful to receive this international, prestigious award,” he said during his virtual acceptance speech. 

Hong Kong’s Transformation

Kwok uses three criteria to define a corrupt society: 1) corruption is widespread and impacts all sectors of society, 2) corruption is out in the open and 3) corruption is well organized through crime syndicates. When Kwok was born in the 1940s Hong Kong bore all those hallmarks, and the situation grew progressively worse. “By the 70s it was definitely one of the most corrupt places on earth,” he said. 

Corruption impacted everyday life — often in horrible ways. Opium dens and gambling joints on street corners were common sights, and Hongkongers had little option but to bribe firemen, ambulance drivers and even the police for the most basic services. Because of corruption, apartment blocks for the underprivileged were so poorly constructed that they often had to be evacuated.  

By the 1970s Hongkongers had had enough and they took to the streets in mass demonstrations after Peter Godber, the then-chief superintendent of police, fled to the U.K. in 1973 when he came under suspicion for corruption. This marked a turning point for the city and Kwok. Soon thereafter, the authorities created the ICAC, one of world’s first anti-corruption commissions. Kwok quickly sign up as a junior investigator and he never looked back.  

Sometimes success is a matter of being in the right place at the right time, said Kwok, reflecting on the trajectory of his career. “I was lucky to be able to join shortly after [ICAC’s] inception and hence was able to participate and witness how Hong Kong succeeded in transforming [itself] from one of the most corrupt places on earth to one of the least.” 

Aside from the fortunate timing of his career choice, Kwok said that he also drew other important lessons from his experiences at the ICAC. For one, fraud investigations are not just about catching the bad guys and throwing them in jail, he said. Often, they can act as an important catalyst for change and the betterment of society.  

For example, Kwok cites a series of investigations carried out by the ICAC in the 1980s that exposed fraud and other types of corruption in the financial industry. Kwok led one such investigation at what was then the third largest bank in Hong Kong — Overseas Trust Bank — which resulted in jail time for a string of C-suite executives who had committed fraud. The ICAC also brought down the then-chairman of the Hong Kong Stock Exchange, Ronald Li, for bribery. 

Revelations of rampant corruption at the very top of high-profile financial institutions led authorities to realize that the sector needed more regulatory oversight and spurred the creation of independent watchdogs such as the Hong Kong Monetary Authority and the Securities and Futures Commission. “These bodies enabled Hong Kong to become a top financial center,” Kwok said. 

Kwok’s decades-long fight against corruption has also made him realize that this is an ever-evolving field and that fraud examiners must adapt to the changing landscape to be successful. “I can confirm that the way I investigated corruption in the ‘70s was a lot different from [what happens in] the 21st century,” he said. “Fraud and corruption are becoming a lot more sophisticated and no longer can you investigate fraud on your own.” 

That often means involving a raft of different support teams with expertise in forensic accounting, computer forensics, surveillance and witness protection, to name a few. “Not only do you need to continuously upgrade your professional knowledge, but you also need to adopt a mentality to take a more proactive and creative approach to the investigation,” he said.