Police arrest 12 following crackdown on pyramid-selling scheme
Updated at 6.44pm:
Police have raided a company in Mong Kok and arrested 12 people for operating an illegal pyramid-selling scheme, a spokesman said on Friday.
The spokesman said officers received a complaint against the company for suspected pyramid selling last December. The company told participants of the scheme to pay about $7,200 in return for an alleged net profit of $357,700 after 14 months.
Officers on Thursday raided the company at 39 Sai Yee Street in Mong Kok. Four men and eight women, aged between 17 and 50, were arrested for conspiracy to defraud.
One, a 36-year-old man, was the company director while others were core members.
Police officers also seized five sets of computers, some cash and a large quantity of documents including records of members of the scheme and the company's accounts.
The 12 are being detained for questioning. Investigations were continuing on Friday afternoon.
The spokesman said some 450 people, from Hong Kong and the mainland, had joined the scheme between September 2004 and April, involving about $9.7 million.
He urged people who might have been victims of the scam to call the Commercial Crime Bureau's hotline, on tel: 2860-5012.