Hong Kong police smash HK$320 million money-laundering operation and arrest 19, but origins of most of cash still mystery
- Police say syndicate, which began operating around June last year, also scammed at least 25 victims, with biggest single loss involving around HK$1 million
- Various bank accounts linked to syndicate handled about HK$320 million over the past year, with officers looking for other scamming or illegal activities
Hongkongers warned over WhatsApp con artists after 25 scam cases in week
Chief Inspector Lau Ho-tak of the Kowloon East regional crime unit said the amount of money scammed from the known victims amounted to just around HK$4 million, while various bank accounts linked to the syndicate handled about HK$320 million over the past year.
“This number far exceeds what police knew about. We will continue to trace whether the group and its bank accounts were involved with other scamming or illegal activities, and may arrest more people,” he said.
Twelve men and seven women, aged 25 to 42, were arrested in a two-day crackdown on Wednesday and Thursday. Among them were the head of the syndicate and key members, some with triad backgrounds, police said.
Senior Inspector Tuen Yuk-hang said the syndicate leader instructed members to set up bogus investment firms by renting out office space and setting up websites.
They would then cold call potential victims claiming they were investment brokers with “low-risk, high-reward” sales pitches, before persuading people to invest in London gold and cryptocurrencies.
Hong Kong police arrest 11 suspects over HK$124 million in laundered money
Victims would then be told to transfer money into the syndicate’s bank accounts. Some were also asked to open investment accounts on trading platforms and persuaded into relinquishing control over them to their “brokers”.
A number of people were charged exorbitant fees, or lured into investing more due to fabricated “wins and losses” in the market.
“In reality, none of these trading platforms were related to London gold and cryptocurrencies. In other words, the scammers never used the victims’ money for any investment activity,” Tuen said.
“The victims always lost money. They never won.”
To avoid getting caught, the syndicate would suddenly shut down their firms after some time and then set up new ones.
The force said the syndicate laundered money through 50 accounts at various traditional and virtual banks, set up by shell companies and individuals.
While raiding one of the group’s offices in Kowloon, officers found a large number of contracts with victims, scripts for cold call sales pitches, and expensive jewellery and watches.
Hong Kong police arrest 458 in 17-day crackdown on money laundering syndicates
Inspector Christine Leung of the force’s commercial crime bureau urged residents to remain alert to pitches for low-risk, high-reward investments, and to choose reputable financial institutions.
“No matter where you go, do not easily authorise agents to have control over your account and investments,” she warned.
From January to April, 1,174 investment scams were reported, rising from 781 cases in the same period last year.
