Lung Siu-chuen, 55, appeared before judge Fred Sham Siu-man at District Court as he was found guilty of two counts of fraud.

He applied for a loan under the government's Housing Loan Scheme back in September 2016, and was granted HK$2.07 million. He also made a mortgage loan application to HSBC for 60 percent of the value of the property and was granted HK$3.9 million.

The housing scheme prohibits applicants from renting the flat to the others.

But after the defendant purchased a flat in Discovery Bay with HK$6.6 million in 2016, he reached a deal with the flat's original tenants to let them continue staying in the flat. The couple paid HK$769,500 to the defendant and stayed in the flat until 2019. After that, the defendant rented the flat to the others and earned HK$390,000.

Lung lied to the government and HSBC that the property would be used by his parents.

Sham said Lung knew all along that he must not let the property to others, referring to his conversations with the property agent and his wife.

Sham added Lung hid the facts intentionally and ruled his testimony as untrustworthy.

He continued that Lung was a senior police officer and there was no reason for him to be so “silly” as to handle the tenancy agreement on his own and get himself into all the trouble.

In mitigation, the defense counsel said the case, which is an isolated incident, has costed Lung about HK$3 million of pension and HK$60,000 of monthly compensation. The counsel added Lung has learned his lesson and there is no way that he would commit the crime again.