26 arrested in loan fraud scam

Twenty-six people including two finance executives have been arrested in connection with a multi-million dollar loan fraud syndicate. The ICAC said the suspects had fraudulently acquired $38 million in loans from two finance companies for a number of factory owners.

Corrupt finance company staff are believed to have helped acquire the loans. The suspects allegedly used bogus contracts and inflated invoices showing the purchase of printing machinery. The suspects have been released on bail pending further inquiries.