Loan-sharking syndicate in Hong Kong that lent money at interest rates of up to 670 per cent broken with arrest of 15 people
Police say triad-controlled operation involved at least 100 debtors and more than HK$2 million
A triad-controlled loan-sharking syndicate that lent money to borrowers at interest rates of up to 670 per cent a year was broken by Hong Kong police with the arrest of 15 people in raids across the city.
Superintendent Ewing Wu Ka-yan of Kowloon East regional crime unit said the charge was more than 10 times the city’s legal interest rate of 60 per cent a year.
He said initial investigation showed at least 100 debtors had borrowed money from the syndicate, which had been in operation for at least 10 months. The total amount of loans involved exceeded HK$2 million (US$255,000).
The 13 men and two women, ranging in age from 23 to 43, were picked up in a series of raids mounted by more than 100 officers on Tuesday and Wednesday.
Nine of the suspects were believed to be core members of the syndicate that mainly targeted those who could not secure loans from banks or licensed moneylenders.
The gang usually sent advertisements to targets through instant phone messages, claiming applicants could receive loans easily and quickly even if they had no proof of income, police said.
