Two arrested over international scam

Police have arrested two Hong Kong men they say tricked companies worldwide into advancing millions of dollars for non-existent electronic parts.

Twenty-two companies from Europe, Asia, New Zealand, the United States and Australia, had made payments ranging from US$2,738 (HK$21,300) to US$352,300 since February 1998, police said last night.

The total amount involved in the scheme was US$791,300, police said.

The suspects, who were arrested on Monday, allegedly sent the companies e-mail or faxes in the name of a fictitious firm inviting them to make purchases.

They also allegedly set up a Web site offering electronic goods for sale.

The conmen targeted importers who advertised on Web sites that they were looking for electronic components.