Two executives of a property development firm behind a failed luxury housing project have been arrested and charged with conspiracy to defraud in a case involving $12 million. Three other men, who were among seven people arrested in November last year over the alleged scam involving Villa Pinada in Tuen Mun, were also charged when they reported back to police yesterday morning. Gold-Face Holdings managing director Tai Chi-wah, 48, was arrested when officers from the Commercial Crime Bureau raided his Wan Chai flat at about 8am, according to a police source. Officers simultaneously arrested company director, Lim Hau-chun, 50, in his Western home. The source said the other three charged were Tin Kwok-keung, 47, former proprietor of Fortune Realty, which folded in February last year, Gold-Face Holdings manager Kong Chi-hung, 44, and brokerage company director Cheung Tak-kwai, 44. The five are accused of conspiracy to defraud four banks of $12 million in mortgages between November 2001 and May 2002, the source said. Police investigations showed the banks had granted mortgages on four houses in the development in the belief that they had been sold, without being told the buyers had been exempted from paying the full purchase price and some of the instalment repayments, or that the beneficial title had been passed to the developers by a declaration of trust. The five accused were released on $100,000 police bail and are due to appear in Eastern Court tomorrow. Villa Pinada was placed in receivership in May last year after it failed to repay about $200 million in bank loans. Five days later its sister project, the Aegean, hit trouble when its developer, Profit Nation Development - a Gold-Face subsidiary - went into receivership.