Police probe sophisticated wine-scam syndicate

Police believe hundreds of investors have fallen victim to a cross-border scam after being promised huge returns for investing in red wine that never existed.

The investors, most from the mainland, were tricked into paying tens of thousands of dollars each to buy en primeur wines - wines that are still maturing in the barrel. They were told they would receive huge returns when the wine was bottled and offered commission to lure investors.

Police began investigating the syndicate after receiving complaints from four women, from Hong Kong and the mainland, last month.

The four invested in red wine through the company, but when their investment was due to mature they did not receive any wine and found they could not contact the agents who had sold it to them.

Officers from the Commercial Crime Bureau arrested two senior executives of a Hong Kong company in connection with the case and seized documents from its office.

Police will exchange intelligence with colleagues on the mainland, where the transactions took place, as part of their investigations.

En primeur wines, or wine futures, give investors the chance to buy into a particular vintage before it is bottled. When the wine is delivered, they can either consume it themselves or sell it on the open market. Normally, the period from purchase to delivery is two years.