23 arrested over fake loan requests for HK$31 million from Hong Kong Covid relief schemes

Syndicates targeted government-back schemes offering low-interest loans to businesses and private individuals affected by Covid pandemic

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Hong Kong police arrested the suspects in a series of raids across the city between Monday and Wednesday. Photo: Warton Li

Published: 8:59pm, 20 Jun 2024Updated: 9:00pm, 20 Jun 2024

Hong Kong police have arrested 23 suspects in a crackdown targeting two fraud syndicates that allegedly attempted to use bank loans to swindle more than HK$31 million (US$3.9 million) from government-backed pandemic relief schemes.

Chief Inspector So Ka-fai of the Kowloon East regional crime unit said on Thursday that the police operation had prevented the loss of HK$26.9 million through the loan scams.

Those arrested included five alleged ringleaders and four core members in the two syndicates, he added.

The suspects comprise 16 men and seven women, who were all detained on suspicion of conspiracy to defraud – an offence punishable by up to 14 years in prison.

According to police, the alleged scams involved at least 24 loan applications to schemes to help small and medium-sized enterprises (SMEs) and private individuals that had been affected by the Covid-19 pandemic.

One of the syndicates started operating earlier this year, luring merchants and private individuals into applying for bank loans guaranteed for the government-backed initiative that focused on supporting businesses.

23 arrested over fake loan requests for HK$31 million from Hong Kong Covid relief schemes

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;}Syndicates targeted government-back schemes offering low-interest loans to businesses and private individuals affected by Covid pandemic

Syndicates targeted government-back schemes offering low-interest loans to businesses and private individuals affected by Covid pandemic