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Suspect arrested over share in damages deal

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Police have arrested another person suspected of helping legal claims in return for a share of the damages, the Department of Justice said yesterday, and investigations could soon result in more prosecutions.

Officers arrested 21 people during a July operation against the illegal activities of recovery agents. They searched 22 premises and seized 11 computers and 900 box files of documents.

Two people, including a lawyer, were charged with maintenance and champerty - the common law offence of encouraging and aiding others to launch a lawsuit in return for a portion of the damages awarded.

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Despite long-held concerns of recovery agents touting for clients outside Labour Department service centres and physiotherapists, July's case was the first of its kind.

The deputy solicitor general, Frank Poon Ying-kwong, announced another person had been arrested, with more documents and computers seized.

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'According to my knowledge, the police are also investigating other cases', which might soon result in prosecution as well, Mr Poon told the Legislative Council's administration of justice and legal services panel.

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