Police make 19 arrests over alleged investment scam
Police on Sunday said they believe they have busted a syndicate that allegedly conned people into parting with millions of dollars to invest in gold and cryptocurrency trading schemes which did not exist. Officers arrested 19 people last week on suspicion of conspiracy to defraud and money laundering. The 12 men and seven women, aged 25 to 42, are suspected of swindling 25 people out of HK$4 million, using a network of over 50 shell companies and stooge accounts to conceal their gains. But chief inspector Lau Ho-tak said the amount of money that passed through the shell companies and bank accounts suggests the HK$4 million might just be the tip of the iceberg. “The police took action to intercept the syndicate's transfer of suspected criminal proceeds, which amounted to around 1.5 million dollars," Lau said. "Given that the overall amount of funds processed by the associated stooge accounts in the past year was as high as 320 million dollars, far exceeding the known fraudulent funds, the police will investigate whether the syndicate and related bank accounts are involved in other fraudulent or illegal activities, and additional arrests may follow.”  Inspector Christine Leung, meanwhile, urged people to be wary of investment plans that are said to be low risk but with high returns. “When the so-called investment company collects your investment funds through personal bank accounts or electronic wallets or requires you to pay large sums of cash in person, you need to be extra careful because it may be a scam," Leung said. She added that investors should only opt for reputable financial institutions, avoid authorising brokers and firms to operate investments on their behalf, and clearly understand the terms before signing documents.